LG
Corporate Credo
LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative products and superior service while aiming to rank among the world’s top three electronics, information, and telecommunications firms by 2010.On our way, we hold tight to a philosophy of "Great Company, Great People," underscoring our belief that only great people can create a great company. LG strives for greatness in what we've identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadership—each strength a key part of realizing our growth strategies for "fast innovation" and "fast growth".
Product leadership refers to the ability to develop creative, top-quality products, using specialized new technologies. Market leadership refers to the ability to achieve top ranking, worldwide, thanks to a formidable market presence in countries across the globe.
People leadership refers to the market dominance achieved by selecting and nurturing talented team players able to internalize and execute innovation across the board.
Fast innovation calls for securing a competitive edge over the competition by setting—and meeting—the highest of goals in all realms of innovation, by at least 30%. This applies to new-product development and unveiling, innovation in design and technology—as well as product sales, market share, and corporate value. Fast growth is the result of implementing strategies designed to swiftly expand market size and earnings, with and eye toward monetary growth.
At LG, we try to meet every road block with an alternate route—brainstorming and working harder before saying “no.” LG’s embraces a code of strong teamwork—encouraging pride in achievement as goals are met by many working together as one. LG’s workplace is one where the individual’s creativity and freedom are respected, and work is made fun.
Following the launch of the holding company, LG Corp., LG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors. This structure helps us deploy more transparent, value-creating management activities that help increase corporate and shareholder value.
Management System - When LG Electronics removed the “Circulating Investment Structure” of its affiliated companies (through the launch of a holding company system’), this enabled the holding company to take full charge of investments. Consequently, LG Electronics has been able to focus on its own businesses while increasing the overall value of the Company. This corporate governance structure has laid the groundwork for increasing managerial transparency. Through a responsible management system comprising of the CEO of LG Electronics and a Board of Directors, we are taking huge steps in strengthening our competitiveness at both the domestic and international level, in order to maximize corporate and shareholder value. Board of Directors - LG Electronics' Board of Directors maintains independence from its management and major shareholders. Currently, the Board has a total of seven directors, four of whom are outside directors. To ensure that external directors are appointed fairly and independently, the "External Director Recommendation Committee," comprised of one in-house director and one external director, nominates external directors following close examination of their qualifications. These outside directors are then voted on at the next shareholders' meeting.
Outside directors are always well-qualified individuals with professional knowledge and experience in key areas. Their main role is to carry out checks and balance functions, as well as monitor the Company's overall management activities. They also act as objective advisors to the Company. Board meetings take place every month, and every member is required to participate. Board members begin by reviewing the meeting agenda provided by Company management prior to the board meeting, evaluate and supervise the Company management's performance and business transactions with affiliated companies, and address other important management issues. Since 2005, LG Electronics has given the board members an opportunity to actively participate in the Company's management activities by offering an “On-The-Spot Management Program” that allows members to visit Company business venues, both locally and abroad. The Company also encourages participation in outside director training programs hosted by the Korean Directors Association.
Corporate Credo
LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative products and superior service while aiming to rank among the world’s top three electronics, information, and telecommunications firms by 2010.On our way, we hold tight to a philosophy of "Great Company, Great People," underscoring our belief that only great people can create a great company. LG strives for greatness in what we've identified as our three core capabilities: Product Leadership, Market Leadership, and People Leadership—each strength a key part of realizing our growth strategies for "fast innovation" and "fast growth".
Product leadership refers to the ability to develop creative, top-quality products, using specialized new technologies. Market leadership refers to the ability to achieve top ranking, worldwide, thanks to a formidable market presence in countries across the globe.
People leadership refers to the market dominance achieved by selecting and nurturing talented team players able to internalize and execute innovation across the board.
Fast innovation calls for securing a competitive edge over the competition by setting—and meeting—the highest of goals in all realms of innovation, by at least 30%. This applies to new-product development and unveiling, innovation in design and technology—as well as product sales, market share, and corporate value. Fast growth is the result of implementing strategies designed to swiftly expand market size and earnings, with and eye toward monetary growth.
At LG, we try to meet every road block with an alternate route—brainstorming and working harder before saying “no.” LG’s embraces a code of strong teamwork—encouraging pride in achievement as goals are met by many working together as one. LG’s workplace is one where the individual’s creativity and freedom are respected, and work is made fun.
Following the launch of the holding company, LG Corp., LG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors. This structure helps us deploy more transparent, value-creating management activities that help increase corporate and shareholder value.
Management System - When LG Electronics removed the “Circulating Investment Structure” of its affiliated companies (through the launch of a holding company system’), this enabled the holding company to take full charge of investments. Consequently, LG Electronics has been able to focus on its own businesses while increasing the overall value of the Company. This corporate governance structure has laid the groundwork for increasing managerial transparency. Through a responsible management system comprising of the CEO of LG Electronics and a Board of Directors, we are taking huge steps in strengthening our competitiveness at both the domestic and international level, in order to maximize corporate and shareholder value. Board of Directors - LG Electronics' Board of Directors maintains independence from its management and major shareholders. Currently, the Board has a total of seven directors, four of whom are outside directors. To ensure that external directors are appointed fairly and independently, the "External Director Recommendation Committee," comprised of one in-house director and one external director, nominates external directors following close examination of their qualifications. These outside directors are then voted on at the next shareholders' meeting.
Outside directors are always well-qualified individuals with professional knowledge and experience in key areas. Their main role is to carry out checks and balance functions, as well as monitor the Company's overall management activities. They also act as objective advisors to the Company. Board meetings take place every month, and every member is required to participate. Board members begin by reviewing the meeting agenda provided by Company management prior to the board meeting, evaluate and supervise the Company management's performance and business transactions with affiliated companies, and address other important management issues. Since 2005, LG Electronics has given the board members an opportunity to actively participate in the Company's management activities by offering an “On-The-Spot Management Program” that allows members to visit Company business venues, both locally and abroad. The Company also encourages participation in outside director training programs hosted by the Korean Directors Association.