For a Better Life
`
`WITH
`
`LIFE’S
`GOOD
`LG
`
`“Life’s Good with LG” is the
`official CSR slogan of LG Electronics
`and conveys our earnest desire for
`comprehensive communication
`with stakeholders about our
`CSR efforts in a variety of areas.
`
`2016-2017 LG Electronics Sustainability Report
`
`1
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`

`Contents
`
`Story of LGE's Sustainability
`
`Innovation for a Better Life
`
`Communication for a Better Life
`
`Cooperating toward a Better Life for All
`
`4 8
`
`10
`
`Overview
`
`13
`
`14
`
`15
`
`20
`
`18
`
`20
`
`24
`
`26
`
`28
`
`30
`
`32
`
`34
`
`36
`
`Management Philosophy
`
`Message from the CEO
`
`Management Messages
`
`Corporate Overview
`
`Who We Are
`
`What We Do
`
`Where We Operate
`
`What We Achieved
`
`CSR Management
`
`Stakeholder Communication
`
`Stakeholder Consultation on CSR
`
`Responsible Management of
`
`Our Value Chain
`
`Materiality Analysis
`
`Key Progress & Performance
`
`Materiality Report
`
`42
`
`52
`
`72
`
`82
`
`92
`
`With Our Customers
`
`With the Environment
`
`With Our Suppliers
`
`With the Community
`
`With Our Employees
`
`Management Report
`
`104
`
`105
`
`106
`
`107
`
`Corporate Governance
`
`Compliance Risk Management
`
`Jeong-Do Management
`
`Fair Trade
`
`Appendix
`
`109
`
`110
`
`111
`
`112
`
`114
`
`119
`
`Economic Data
`
`EESH & Quality Certifications
`
`Memberships/Awards & Recognition
`
`Independent Assurance Statement
`
`GRI/UNGC Index
`
`Contributors to Report Preparation
`
`01
`
`Pages 12-39
`
`02
`
`Pages 40-102
`
`03
`
`Pages 103-107
`
`04
`
`Pages 108-119
`
`REPORT OVERVIEW
`
`In preparing our 2016-2017 Sustainability Report, LG Electronics adopt-
`ed the G4 guidelines of the Global Reporting Initiative (GRI). As part of the
`process for implementing the guidelines, we reviewed the previous year’s
`edition and best practice cases from corporations at home and abroad
`against the latest indices to identify the aspects that are lacking in our re-
`port. In order to address these aspects and prepare a more comprehensive
`and insightful report, we had extensive communication with functional
`departments, focusing primarily on our strengths and weaknesses. We
`also reached out to our internal and external stakeholders through a wide
`range of communication programs to seek their opinions, and performed a
`materiality analysis to identify the information that is considered material
`to stakeholders as well as to LG Electronics.
`Based on the findings, we tried to introduce information concerning “Ma-
`terial Aspects” as defined by the G4 guidelines. Externally, we worked with
`a third party assurer to review the analysis results against the aspects
`perceived as material to industry peers to verify what is missing from each
`other’s list (and vice versa), while internally reviewing the results with re-
`lated business departments to select and introduce the information that
`is material and useful both to LG Electronics and to our stakeholders.
`Articles on material aspects prepared by functional departments were
`finalized after a review by management and a third party assurer.
`
`REPORTING PRINCIPLES
`
`G4 Guidelines of the Global Reporting Initiative (GRI),
`UN Global Compact (UNGC) Index, Accountability Principles Standard
`(AA1000APS), and Stakeholder Engagement Standard (AA1000SES)
`
`REPORTING SCOPE
`
`This report covers all business sites of LG Electronics, both in Korea and
`overseas, and major supplier sites, including activities and performance in
`economic, environmental, and social areas.
`
`REPORTING BOUNDARY
`
`Information is organized based on material issues and presented under
`the “DMA (Disclosure on Management Approach)” for each section.
`
`REPORTING PERIOD
`
`Data from the calendar year 2016, from January 1 to December 31
`(for performance in select areas, data from the first half of 2017 was
`also included)
`
`ASSURANCE
`
`Independent Assurance Statement (Korea Productivity Center)
`(See pp. 112-113)
`
`Information Sources concerning
`LG Electronics’ Sustainability Management Efforts
`
`Website
`
`Annual Report
`
`www.lg.com/sustainability
`
`CSR Team, LG Electronics | LG Twin Towers
`128 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea
`
`Email: sustainability@lge.com Tel: 82-2-3777-3263
`
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`1
`
`Innovation for
`a Better Life
`
`TODAY
`
`Emerging technologies such as AI (Artificial Intelligence), robotics, and the IoT (Internet
`of Things) are expected to bring about the Fourth Industrial Revolution in the foreseeable
`future. At the World Economic Forum (WEF) held in Davos, Switzerland in January 2016,
`Klaus Schwab, executive chairman of the WEF, stated, “In its scale, scope, and complexity,
`the transformation will be unlike anything humankind has experienced before,” to under-
`score the magnitude of this oncoming transformation. These advances in technologies
`will blur the boundaries between technologies and between industries, and bring about
`complete connectivity and convergence of technology, accelerating the evolution toward
`a more “intelligent” society in the process. It is increasingly becoming clear that busi-
`nesses have no other option but to embrace the oncoming transformation and changing
`environment to ensure their survival. Based on this recognition, LG Electronics is stepping
`up its effort to thrive in the coming wave of the Fourth Industrial Revolution. At the
`Consumer Electronics Show (CES) 2017 held in Las Vegas, LG Electronics unveiled new
`technology concepts such as IoT home appliances, and airport guide and cleaning robots
`as part of our initiatives for the Fourth Industrial Revolution, receiving immediate and
`enthusiastic response.
`
`AI
`
`Robotics
`
`IoT
`
`
`
`
`
`444
`
`
`
`Materiality Report LGE's Sustainability
`
`
`
`55
`
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`
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`Internet of Things (IOT)
`
`A great number of digital devices are being connected to one
`another through network, and this is creating values that didn’t exist
`in the past. Now, smart speakers in our living room understand our
`discussion and answer our questions about weather or stocks. They
`also turn off the light or turn on the air conditioner. LG Electronics
`will create new value in the Fourth Industrial Revolution Era based
`on technological capability accumulated through our experience
`in home appliance and insight into the future of our society. If we
`succeed in turning our vision into a reality, lights will automatically
`be turned off when we leave the house, and HOM-BOT could
`take care of vacuuming on its own while we are away from home.
`Furthermore, through the networking of IoT device sensors, LG
`Electronics will create a safer and more comfortable smart-home
`environment where the devices work on their own to maintain the
`air quality, detect an intrusion by strangers, and check if your child
`has returned home safely. In addition, in the B2B area, LG Electronics
`will prepare for the future with smart factories that effectively
`handle low-quantity production of a variety of goods at a faster
`pace.
`
`2
`
`AirBot serves as a guide and escort at the airport, providing boarding and
`gate information, and escorting passengers.
`Smart home solution that can control LG's home appliances with voice
`commands alone by connecting Amazon’s A.I. voice recognition service Alexa
`to LG Electronics’ SmartThinQ Sensor and SmartThinQ Hub.
`
`1 2
`
`1
`
`LG Electronics’ Preparation for the Future
`
`Artificial Intelligence (AI)
`
`Widely billed as “man vs. machine,” the 2016 Go match between an
`artificial intelligence system and Se Dol Lee, 9-dan Go professional
`with 18 world titles, attracted huge interest across the world, and
`the AI’s victory underscored the potential value of the technology—
`applications across boundaries and the enrichment of human life.
`LG Electronics has already formed partnerships with global tech
`companies such as Google and Amazon to develop smartphones,
`home appliances and TVs with voice recognition features and utilize
`the deep learning technology to make our products become smarter
`on their own. Through these effort, LG Electronics aims to increase
`the intrinsic value of home appliance products such as smart
`washing machines that analyze water quality and automatically
`adjust the washing time for an optimum effect, smart refrigerators
`that allow users to order groceries via voice command and conserve
`power by analyzing the use patterns, and smart air conditioners that
`use less energy and offer greater cooling performance by sensing
`the location of people.
`
`Robotics
`
`From robots that improve productivity on the factory floor to those
`that cook or fold laundry, the application of robotics is expanding
`at a rapid pace. To keep pace with the evolution of robotics, LG
`Electronics is working hard to develop new types of robots that
`leverage our core strengths. For instance, LG’s robotic vacuum
`cleaner (HOM-BOT), which moves around the house on its own,
`could easily evolve into a robotic lawn mower, and airport guide and
`cleaning robots, which will initially be introduced to airports, will be
`further developed for B2B applications as well as for applications for
`hotels and hospitals in the near term. LG Electronics also plans to
`contribute to creating additional value for human life by developing
`wearable-type robots that give more muscle strengths to those who
`carry out tasks that require high muscle strength.
`
`3
`
`4
`
`3, 4
`
`LG Hub is an AI home robot that responds to voice commands
`and is connected to LG appliances.
`
`!
`
`TOMORROW
`
`It is difficult to predict how much of innovative changes the Fourth Industrial Revolution
`will bring in different areas. This makes it all the more important to be well-prepared for
`the future across areas such as AI, robotics, and the IoT as well as for AR/VR, drones,
`and autonomous driving. It will become virtually impossible for a business to enjoy
`a sustained success on its own because the convergence of technology will become
`a pervasive force. In order to thrive in this new business environment, businesses need to
`pursue collaborative partnerships with research institutions from various fields, academia,
`and start-ups. LG Electronics will become more active in its pursuance of open innovation
`based on collaboration. This will help LG Electronics acquire core future technologies and
`drive changes in workstyle, which in turn will help us strengthen our existing businesses,
`while prepare ourselves thoroughly to discover new drivers for future growth.
`
`6
`
`LGE's Sustainability
`
`7
`
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`2
`
`Communication
`for a Better Life
`
`TODAY
`
`Stakeholders are the top priority
`in LG Electronics’ sustainability
`management system. This is
`because LG Electronics is a
`member of an organic ecosystem
`called society, and stakeholders are
`the earth that helps LG Electronics
`to grow healthy and thrive in the
`ecosystem. LG Electronics aims
`to be a sustainable company that
`stakeholders can trust. To this
`end, LG Electronics is expanding
`communications with internal and
`external stakeholders in various
`ways.
`
`CSR Change
`Management
`
`8
`
`LGE's Sustainability
`
`Stakeholder
`Engagement
`
`GOAL
`
`Sustainable Growth
`based on Stakeholder
`Trust
`
`Risk
`Management
`
`Valuable Social
`Contribution
`
`!
`
`TOMORROW
`
`With changes in the business
`environment, the needs and types
`of stakeholders are constantly
`changing as well. LG Electronics
`intends to look at stakeholders
`with a new perspective to keep
`up with the changes and expand
`its channels of communications
`in all possible ways to listen to
`stakeholders with an open mind.
`LG Electronics will continue its
`efforts to engage and communicate
`with stakeholders first before
`they make any demands.
`
`Continue to
`communicate
`with stakeholders
`throughout the CSR
`implementation
`process.
`
`- SNS
`(Blog/Facebook)
`
`EXTERNAL
`
`- Seminar/Forum
`
`- Marketing/Procurement
`College education
`
`- Company newsletter
` (PRIDE LG)
`
`- Stakeholder Consultation
`Meetings
`
`- Intranet
`
`- CSR Newsletter
`(for all employees)
`
`- Sustainability Report
`
`- Survey/Interview
`
`- Homepage
`
`INTERNAL
`
`- Training for newly hires
`(entry-level and prior experience
`positions) /FSE and President of
`subsidiaries
`
`- Love Genie
`(Collegiate CSR Academy)
`
`Social LG
`
`CSR Newsletter
`
`Sustainability Report
`
`Homepage
`
`9
`
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`Cooperating
`toward a Better Life
`for All
`
`3
`
`p. 85
`
`Technology
`that Cares
`
`p. 87
`
`Trustworthy
`Partner
`
`!
`
`TOMORROW
`
`LG Electronics strives for “Social
`Contribution Worthy of Its Name,” which
`refers to the way of social contribution
`that reflects LG Electronics’ commitment
`for a better life and the way that LG
`can excel by leveraging its strengths.
`LG Electronics’ social contribution is,
`therefore, focused on creating more
`social value through “Technology that
`Cares” and “Trustworthy Partner” by
`selecting areas where LG Electronics
`can excell. Through these efforts, LG
`Electronics will strive to realize its
`slogan, “Life’s Good with LG,” in every
`corner of the world.
`
`2
`
`1
`
`TODAY
`
`LG Electronics’ vision is to become a responsible company to the society by “cooperating
`toward a better life for all.” With this in mind, LG Electronics is putting efforts to solve
`social issues in all of the countries where it operates in a sustainable way as a true partner.
`LG Electronics’ corporate contribution to the society branches out in three ways. The
`first one is "Technology that Cares" that adds value to life so that everyone can enjoy a
`better life; the second one is “Trustworthy Partner" which means communicating with
`stakeholders; and the third one is “Sharing and Comfort” which means pursuing better lives
`of many neighbors with the help of sincere participation of employees.
`
` LG Solar Power Station
`1. Technology that Cares
`LG Electronics operates “Technology that Cares” programs to
`provide differentiated value to the local community, leveraging
`products and technologies related to its business. As part of
`such effort, it installed solar power charging stations in remote
`villages in Ethiopia, Pakistan, Cambodia, and Sri Lanka. It also
`operates emergency relief programs using mobile phones.
`LG Electronics will continue to make use of its products and
`technologies to enrich the lives of more people.
`
` LG Hope Screen
`2. Trustworthy Partner
`LG Electronics pursues community-focused corporate contribution
`activities in order to solve community issues effectively. These
`initiatives are carried out together with experts from various
`stakeholder groups such as international organizations, NGOs,
`academia, etc. by forming partnerships built on trust. Going
`forward, LG Electronics will continue to work harder to resolve
`community issues by strengthening cooperation based on trust
`between LG Electronics and its stakeholders.
`
`3. Sharing and Comfort World Environment Day
`Campaign
`To fulfill its social responsibilities as a corporate citizen in all
`countries where it operates, LG Electronics is actively practicing
`"Sharing and Comfort" so that employees actively take part
`on a voluntary basis. In addition to environmental protection
`initiatives organized in celebration of World Environment Day,
`our employees participate in global blood donation campaigns
`and volunteer to help those in need. LG Electronics’ social
`contribution initiatives driven by its employees will be expanded
`as LG Electronics strives to become a trusted and respected
`member of the local community.
`
`p. 88
`
`Sharing and
`Comfort
`
`3
`
`10
`
`LGE's Sustainability
`
`11
`
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`

`01
`Overview
`
`13
`14
`15
`20
`18
`20
`24
`26
`28
`
`30
`32
`34
`36
`
`Management Philosophy
`Message from the CEO
`Management Messages
`Corporate Overview
`Who We Are
`What We Do
`Where We Operate
`What We Achieved
`CSR Management
`Stakeholder Communication
`Stakeholder Consultation on CSR
`Responsible Value Chain Management
`Materiality Analysis
`Key Progress & Performance
`
`Management Philosophy
`
`LG Way
`The LG Way articulates our belief in attaining the vision of becoming “No. 1 LG” through “Customer-Value Creation” and
`“People-Oriented Management,” the guiding principle for our thoughts and actions, as we stay true to the spirit of
`“Jeong-Do Management” in our everyday practice.
`
`Customers
`
` > LG, Trusted by Customers
`Capture the hearts of customers
`with exceptional quality and brand
`value.
`
`Investors
`
` > LG, Favored by Investors
` Become a favorite investment option for
`investors by delivering high profits.
`
`Vision
`
`What we ultimately aspire to achieve
`through Jeong-Do Management and
`its two tenets, “Customer-Value
`Creation” and “People-Oriented
`Management,” is to become
`“No. 1 LG,” a market-leading company
`recognized and respected by
` industry peers and the
`broader market.
`
`Employees
`
`> LG, Coveted by Talented Professionals
`Create a great workplace that
`inspires talented professionals to
`work with passion and drive.
`
`Competitors
`
`> LG, Feared and Respected by Competitors
`Produce strong results through
`“No.1 Management” and become an
`industry leader feared and respected
`by competitors.
`
`Management Principles
`Our management principles are comprised of “Customer-Value Cre-
`ation,” which conveys our business objective, and “People-Oriented
`Management,” our operational principle.
`
`Behavioral Mode
`Jeong-Do Management expresses our commitment for strengthening
`our fundamental competitiveness continuously and competing fairly as
`we base our professional conduct and business practices on the ethical
`management standard articulated by Jeong-Do Management.
`
`Customer-Value
`Creation
`Customer first /
`Delivery of substantive /
`Innovation-driven creation
`
`People-Oriented
`Management
`Self-management and creativity
`/ Respect for human dignity
`/ Capability development and
`actualization / Performance-
`based reward
`
`Three Core
`Elements of
`Jeong-Do
`Management
`
`01
`Integrity
`
`Work transparently
`according to principles
`and standards
`
`Provide equal opportu-
`nities and fair treatment
`in every transactional
`relationship
`
`Improve capabilities with
`which one can fairly win
`the competition
`
`12
`
`Overview
`
`13
`
`2016-2017 LG Electronics Sustainability Report
`
`02
`Fair Transaction
`
`03
`Fair Competition
`Based on Merit
`
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`

`technology to gain a world-class manufacturing
`competitiveness by applying smart technology
`in production and manufacturing equipment as
`well.
`
`Second, we will manage our businesses taking
`“Quality” and “Safety,” which are the most basic
`and important promises with our customers as
`a pillar of our business. We will always keep in
`mind that quality is the most basic and abso-
`lute commitment to building trust with our cus-
`tomers, taking the lead in establishing first-class
`quality and safety by engaging all our employees,
`and we will also encourage our suppliers to fol-
`low suit.
`
`Finally, we will internalize and settle the ‘Winning
`Spirit to become No. 1’ and ‘Smart Working Cul-
`ture.’ We believe that we have established our
`commitment to seeing the finish line of anything,
`whatever it takes, once we started off, and this
`passion and thirst for success is what I believe is
`the foundation of becoming No. 1.
`
`Also, in the process of transformation, all of
`our employees will thoroughly stick to Jeong-
`Do management, which creates performance
`through fair competence, not expedient or luck
`by change. Only with these efforts given as a
`basis can LG Electronics take off as a company
`that is advanced year on year and respected by
`the society.
`
`LG Electronics will continue to grow with our
`customers through our journey of change, ful-
`fill its social responsibilities as a global corporate
`citizen, and will be a company that can present
`the hope and vision for the future as a stepping
`stone for growth for our employees.
`
`We look forward to your continued support and
`interest.
`
`Thank you.
`
`May 2017
`
`Vice Chairman and CEO
`
`Seong Jin Jo
`
`To our valued stakeholders:
`
`This year is meaningful as LG marked its 70th anniversary. For the
`past 70 years, LG Electronics has been leading innovation within
`LG group and raising brand value by putting its customers first and
`standing by LG’s founding spirit of entrepreneurship. In order to con-
`tinue to achieve sustainable growth, we aim to become “No. 1 LG
`that customers truly desire, unfaltering in spite of whatever crisis it
`is faced with.” And we will strive to implement sustainability man-
`agement more systematically across our management activities. In
`particular, LG Electronics intends to focus on three initiatives so that
`it can fulfill its role of promoting health throughout the market as
`well the society as a healthy company on its own.
`
`First, we will take “Profitable Growth” as an important pillar of our
`business in order to build a firm foundation for sustainable man-
`agement. We are convinced that only through profitable growth
`can a company go beyond survival and keep on advancing year on
`year and accordingly we will dramatically improve the basic com-
`petitiveness of our business in a “complete different manner,” and
`we will shift our business method to generate profits by develop-
`ing flagship products that bring new value to consumers, as well as
`further promoting premium brands.
`
`We will link smart businesses to prepare for the future - such
`as IoT, big data, Artificial Intelligence, and Cloud businesses - with
`existing ones to advance them into new paradigms of business
`such as a robot business and we will also promote them as new
`future growth engines. In addition, we will actively utilize smart
`
`To stay as a company capable of sustainable growth in the
`
`future, LG Electronics aims to become “No. 1 LG that customers
`
`truly desire, unfaltering in spite of whatever crisis it is faced
`
`with, and will endeavor to implement sustainability management
`
`more systematically in all its management activities.
`
`Message from the CEO
`
`14
`
`Overview
`
`15
`
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`
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`

`Management Messages
`
`President Skott Ahn
`
`CTO (Chief Technology Officer)
`
`LG Electronics has had a profound impact on the
`lifestyle and culture of our lives through home
`appliances. I think we now need to focus on the
`value that robots are bringing to us. Robots go
`beyond simply providing technological conve-
`nience and create new value by communicating
`with modern people in their everyday life. Tech-
`nological trends and social trends are combined
`to create enormous synergies. Technological de-
`velopment is important in creating value even
`without manufacturing, but I think paradigm
`shift is more important than anything else. I be-
`lieve the role of LG Electronics is to continuously
`experiment with new perspectives based on LG’s
`founding spirit, check whether it is acceptable to
`consumers, and present lifestyles and culture of
`our lives.
`
`Vice President Charlie Park
`
`CHO (Chief HR Officer)
`
`LG Electronics' management philosophy is “cre-
`ating customer value through management
`based on respect for humanity’' and respect for
`humanity means giving the members of our or-
`ganization the opportunity to demonstrate their
`abilities on an equal footing and giving talented
`individuals the best compensation for demon-
`strating outstanding performance in their work.
`Such management will guide the members of
`our organization to fundamentally improve our
`customers' life by pioneering innovation based
`on creative thinking so that ultimately, we can be
`a company that is loved and respected by mem-
`bers of the society. We are well aware that each
`and every one of our members is an important
`asset not just to the company, but to our society
`and the country. With that in mind, we will keep
`making efforts to make sure that each mem-
`ber can maximize their potential, grow with the
`company, and enrich not only their lives but the
`overall quality of life of the society.
`
`Executive Vice President Brian Na
`
`Global Sales & Marketing Officer
`
`Today, there are a growing number of stake-
`holders who assess corporate social responsi-
`bility. LG Electronics not only complies with laws
`and regulations in various countries around the
`world, but also focuses on developing products
`that enable consumers to use LG Electronics
`products safely and with convenience. In addi-
`tion, LG Electronics will fulfill its social respon-
`sibility by especially paying attention to safety,
`regulatory, and environmental issues to prevent
`occurrence of negative issues and to contribute
`to further advancement of human dignity.
`
`Executive Vice President Choong Hak Lee
`
`Business Support Officer
`
`In order to fulfill its corporate social respon-
`sibility based on communications with its
`stakeholders, LG Electronics is making an
`effort to become a company that betters
`human life by minimizing negative aspects
`while maximizing positive impacts through
`business activities. In particular, we are man-
`aging the ‘Environment, Health and Safety’
`for the protection of the local community
`and workers in accordance with international
`standards throughout the entire value chain.
`In addition, we strive to contribute to the
`achievement of UN Sustainable Development
`Goals through valuable social contribution
`activities for the betterment of the local and
`the global communities.
`
`Executive Vice President Ho Geon Hwang
`
`B2B Officer
`
`Despite differences depending on countries,
`the environmentally friendly demands such
`as Smart Life and Smart Energy are grow-
`ing and increasingly becoming an important
`business agenda item. We believe that all
`of LG Electronics' businesses related to its
`smart technology development and energy
`efficiency are in line with the social needs in
`themselves. The DNA of the business itself
`forms an axis of the social responsibility, and
`the area of the social responsibility is grad-
`ually expanding to the global level. Rather
`than being complacent with being a com-
`pany that sells products, LG Electronics is
`becoming a company that not only provides
`comprehensive solutions in areas of smart
`and eco-friendly business, but also provides
`services all the way to end customers.
`
`16
`
`Overview
`
`17
`
`2016-2017 LG Electronics Sustainability Report
`
`Fundamental Ex 2019-p. 9
`ZTE et al v Fundamental
`IPR2018-00111
`
`

`

`Who We Are
`
`Corporate Overview
`
`1
`
`LG Electronics is a global leading innovator and provider of electronics, mobile communi-
`cations devices and home appliances, and conducts its operations through four business
`companies: Home Entertainment (HE), Mobile Communications (MC), Home Appliance &
`Air Solution (H&A) and Vehicle Components (VC). LG Electronics has been sparing no effort
`in advancing its business and technology portfolios following the three strategic directions:
`enhancing our position in the premium market, accelerating the shift to B2B operations,
`and securing drivers for future growth. LG Electronics made changes to its management
`structure in December 2015 and adopted a group leadership structure to empower business
`companies and strengthen accountability. In December 2016, LG Electronics readopted the
`one-CEO management structure to facilitate fast response to ever changing business con-
`ditions and effectively align the executional strength of our organization.
`
`CORPORATE PROFILE (AS OF DECEMBER 31, 2016 / CONSOLIDATED)
`
`LG Electronics Incorporated
`LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea
`Manufacturing
`TV, Home Theater System, Mobile Handset, Laptop Computer, Refrigerator,
`Washing Machine, Cooking Appliance, Built-in System Kitchen Appliance,
`Vacuum Cleaner, Health Care Appliance, Air Conditioner, Monitor, Automotive
`Navigation System, Stereo System, Video System, Security System,
`
`Commercial Display, etc.
`Seong Jin Jo
`October 1, 1958
`75,150 (37,912 in Korea and 37,238 overseas)
`KRW 37,855.3 billion
`KRW 24,498.5 billion
`Korea: AA (Stable), S&P: BBB (Negative), Moody’s: Baa3 (Negative)
`186,629
`KRW 28,743.2 billion
`KRW 55,367.0 billion
`KRW -290.5 billion
`KRW 1,337.8 billion
`
`Name
`Location of Headquarters
`Industry
`Major Products
`
`President
`Date Established
`Number of Employees
`Total Assets
`Total Liabilities
`Credit Rating
`Number of Shareholders
`Sales
`Parent
`Consolidated
`Parent
`Consolidated
`
`Operating
`Income
`
`CORPORATE HISTORY
`
`1958-1999
`An Innovative Start
`
`1958 Establishes Gold Star, now LG Electronics, giving birth to
`Korea’s electronics industry
`1959 Introduces Korea’s first radio, the first of the many
`delights to be delivered by LG Electronics
`1965 Introduces Korea’s first refrigerator
`1966 Introduces Korea’s first Black & White TV
`1978 Exceeds USD 100 million in exports
`1982 Establishes an overseas production base in Huntsville
`(U.S.), a first for a Korean company
`1995 Rebrands the company to LG (Renaming and CI renewal)
`1999 Officially launches LG-Philips LCD
`
`2000-2009
`Global Brand LG
`
`2005 Takes the lead in the U.S. drum washing machine market
`2008 Develops the world’s first LTE mobile modem chip
`2009 Becomes the world’s second largest LCD TV brand
`
`2010-PRESENT
`Faster and Smarter
`
`2011 Introduces the Cinema 3D Smart TV, masterfully integrating
`the 3D TV technology and smart TV features
`2012 Introduces the world’s largest 84-inch UHD Cinema 3D Smart TV
`2013 Introduces a wide range of easy and convenient smart devices and
`appliances; Launches the Vehicle Component business company
`2014 Introduces the world’s first 4K OLED TV and the Web OS Smart TV;
`Introduces the G3 Smartphone with the Quad HD display
`
`2015.03
`
`2015.06
`
`2015.07
`
`2016.01
`
`2016.03
`
`2016.07
`
`
`
`
`
` Completes the Haiphong Campus in Vietnam. Expected to grow into a global
`production hub by 2028.
` LG technologies are included in the “70 Major Scientific and Technological
`Achievements” organized by the Ministry of Science, ICT and Future Planning in
`celebration of the 70th Anniversary of Independence. (GoldStar Radio A-501,
`GoldStar Black & White TV, lithium-ion battery, LCD backlight film, the new global
`medicine Factive, and linear compressor technology)
`
` Introduces the TROMM Twin Wash
`
`The Ultra OLED TV (65EG9600) is named the “King of TV.”
` LG drum washing machine remains the bestselling washing machine model in the
`U.S. market for nine consecutive years.
` Launches LG SIGNATURE, an ultra-premium home appliance brand.
`Concludes the annual collective bargaining and wage negotiations without dispute
`for the 28th consecutive year.
` Gram 15 sets a Guinness World Record for the lightest laptop model.
`
`
`
`
`
`18
`
`Overview
`
`19
`
`2016-2017 LG Electronics Sustainability Report
`
`Fundamental Ex 2019-p. 10
`ZTE et al v Fundamental
`IPR2018-00111
`
`

`

`Our mobile communication business strives to deliver sin-
`
`gular products by merging our superior technology with exquisite
`designs and innovative ideas, continually enhancing customer value.
`In the second half of 2016, we actively implemented initiatives for
`streamlining our business structure as a foundation for a successful
`turnaround in mobile handsets.
`
`SALES (Consolidated)
`
`OPERATING INCOME (Consolidated)
`(Unit: KRW 100 million)
`
`117,097 (USD 10.1 billion)
`-12,591 (USD -1.1 billion)
`
`Portion of Sales
`
`21.1%
`
`Management Message
`
`At MC, we are keenly aware of the fact that
`smartphones have become an integral part in
`our customers’ waking life. Based on this recog-
`nition, we place a particular emphasis on details
`that ensure customer safety and convenience
`such as product safety, screen quality, battery
`quality, heating issues and single-hand control.
`In line with these efforts, we are committed
`to product stewardship and spare no effort to
`make our slogan, “Let’s make products that we
`can proudly recommend to our loved ones with
`full confidence,” a reality. In addition, we fully
`embrace responsible sourcing as our standard
`business practice as well as our basic social re-
`sponsibility. For instance, we have considered
`using a process that enables a slimmer design in
`the process of developing the G6. However, we
`gave up on that option because nickel was used
`in the process and changed our design for the
`product model.
`
`President, MC Company
`President - Juno Cho
`
`What We Do
`
`Our Business
`
`2
`
`LG Electronics is succ