LG China headquarters on the way up

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Last updated at: (Beijing Time) Saturday, July 27, 2002

LG China headquarters on the way up

The foundations were laid for the 140-meter-high LG Mansions project, costing some 400 million US dollars, in Beijing on Friday.

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The foundations were laid for the 140-meter-high LG Mansions project, costing some 400 million US dollars, in Beijing on Friday.

When construction is completed by 2005, the building will become the China headquarters of the LG Group, the third largest company in the Republic of Korea (ROK).

At Friday's ground-breaking ceremony, Yong-Ak Ro, vice-chairmanof LG Electronics and chief executive officer (CEO) of LG Electronics (China) Ltd., said the project reflected the crucial role China played in helping LG win on the global business stage. It was also a sign of LG's resolution in joining with China to pursue common prosperity.

The twin-tower building, with 30 floors above ground and another four underground, follows a similar design to LG's world headquarters based in Seoul. Covering over 150,000 square meters, it will accommodate 12 LG subsidiary companies.

It was just the beginning of LG's new round of business expansion in China, said Ro, revealing that all LG departments were preparing to boost their investment in China.

"China has been recognized as the engine for global economic growth in the 21st century", said Ro, stressing that it was almostimpossible for a company to become top-class without being successful in the Chinese market.

LG Electronics, a key component of the LG Group, raised its sales in China to 2.8 billion US dollars in 2001 from 1.2 billion US dollars in 1999, achieving an annual average sales growth of 49percent.

Apart from its additional 400-million-US dollar investment in China over the first half of the year, LG Electronics plans to push its sales in China up to 8 billion US dollars by 2005.

Established in 1947, the LG Group has established 50 subsidiarycompanies all over the world, with 8.1 billion US dollars in grossassets. Its interests include communications, chemicals and energysources, finance and service industries.

Since entering the Chinese market a decade ago, LG has so far set up more than 30 plants and 60 offices across the country, investing nearly 2 billion US dollars in the Chinese mainland.

China and the ROK have seen remarkable developments in economiccooperation and trade, ROK Ambassador to China Kim Ha-Joong said.

Official statistics show that annual bilateral trade was a mere6.4 billion US dollars when China and the ROK established diplomatic relations 10 years ago, while the figure rocketed to 31.5 billion US dollars in 2001. By June this year, ROK investment inChina had reached 12 billion US dollars, making China its second largest overseas investment market.

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