LG Electronics goes on shopping trip to Taiwan

TAIPEI - South Korea's LG Electronics would buy about US$1.4 billion ($1.9 billion) of technology products from Taiwan this year, nearly tripling last year's spending, its vice-chairman said.

S. S. Kim, who is also LG's chief executive, said his company, which competes with Samsung Electronics in phones, televisions and refrigerators, would source more key electronics components from Taiwan.

"Last year's purchase was about US$500 million and the US$1.4 billion we plan for this year will be mostly for electronics components, including semiconductors and LCD panels," said Kim.

Kim said the company was looking for Taiwan suppliers to assemble liquid crystal display (LCD) televisions for LG, but he declined to identify potential partners.

The firm mainly sells advanced consumer products, such as flat-screen plasma TVs and mobile phones, under its own brand in Taiwan.

Operations in Taiwan make up only 1 per cent of LG's total revenue.

Kim said LG expected global sales of US$41 billion this year, up about a third from last year.

LG is aiming to become one of the world's top three consumer product makers by 2010. It is the fifth largest cellphone maker.

- REUTERS