LG to establish TV R&D subsidiary in Indonesia

Thursday, July 6th, 2023 
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LG Launches New R&D Subsidiary in Indonesia

  • New Research Subsidiary to Play Key Role in Streamlining Company’s Business Operations in Asia

SEOUL — LG Electronics (LG) is establishing a new 40,000 square meter R&D subsidiary* in Indonesia. The first-ever overseas research subsidiary on behalf of the LG Home Entertainment Company, the facility finishes LG’s complete, local business operation encompassing product development, production and sales.

LG Indonesia R&D centre

The opening ceremony, which was held on July 6 in Cibitung, Indonesia, was attended by Park Hyoung-sei, president of the LG Home Entertainment Company, as well as government officials representing both nations.

This new subsidiary will conduct all R&D projects for products targeting the global market, pointing to LG’s continued dedication to addressing the unique needs of local consumers as a leading brand loved worldwide. Enabling the unified operations of product development and manufacturing, the new subsidiary will allow LG to develop new models with higher efficiency as well as expand the company’s businesses in the global TV market with heightened speed.

The company also aims to foster local product operation systems focusing on R&D with the aim of developing a more diverse lineup of TV products that respond to the rapidly growing Asian market, particularly Indonesia. Under the initiative, the company launched the LG Electronics Indonesia R&D subsidiary, the predecessor of the current research subsidiary under the same name, in 2021 and last year put together a new team under its Home Entertainment Company dedicated to product development in the Indonesian market. Latest in these efforts, the new R&D subsidiary will serve as a launching pad for LG’s innovations targeting the global market.

This R&D subsidiary is especially meaningful as it provides a local one-stop system for seamless business operations. In his visit to Indonesia last April, CEO William Cho stressed the importance of streamlining local operations to achieve a new level of excellence in quality, cost and delivery. Situated in close vicinity to its Cibitung production and Jakarta sales subsidiaries, this new R&D subsidiary allows the entire supply chain to be carried out within the region.

To support the subsidiary’s diverse research projects, LG is operating training programs for TV R&D developers and plans to continuously hire experts to reach 500 employees by 2025. The company will also strengthen its ties with local universities by launching industry-academic collaborations designed to uncover budding professionals. This sets the environment for a fully localized R&D system, contributing to versatile product planning and development quickly carried out on a global scale for heightened cost competitiveness. Lee So-yeoun, head of R&D in Indonesia, has taken office as the new head of the LGE Indonesia Research and Development Subsidiary.

“The R&D subsidiary is a step towards our goal of reaching our consumers in the best way possible from product development all the way to customer-end services,” said Park Hyoung-sei, president of the LG Home Entertainment Company. “The facility will become a testing bed for the latest LG innovations preparing to revolutionize the industry on a global scale.”

* LGE Indonesia Research and Development Subsidiary.

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