LG’s plans to inject record high US$5.6bn into R&D

LG Group plans to spend a record high amount on research and development (R&D) this year in order to develop new technologies that will help the conglomerate lead the market.

In 2015, the company group expanded its number of researchers and technical advisers (executive levels) to the highest level. It recently said that it will invest 6.3 trillion won ($5.6 billion) in R&D projects this year. This is the first time for the company group to put aside over six trillion won worth of annual R&D budget, equivalent to 39.4 percent of LG’s total investment for 2015 of 16 trillion won.

The allocation of the total investment on a group level also hit an all-time high. The group set aside 37.1 percent or 5.9 trillion won of the total 15.9 trillion won investment last year. Such ever-high aggressive investment on R&D will be focused on three major areas of electronics, chemicals and telecommunication, service. In particular, more than two-thirds of the entire investment or 4.2 trillion won will be used for the electronics area, which is scheduled to be carried out by LG Electronics and LG Display.

In the electronics sector, focus on technologies of next-generation mobile and display will be at the center of the investment. In the communications and services sector, the investment focus will be the 5G mobile communication network technology and big data processing technologies.

In addition to three areas of electronics, chemical and telecommunication, LG’s investment will also be created for R&D for technological development of new growth engines including the convergence industry.

korean-electronics.com | Blog Magazine of korean electronics, brands and Goods

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