Published on : Jul 25, 2014
LG Electronics Inc will invest USD 1.26 billion in the construction of a new research and development unit in South Korea’s capital city Seoul. The facility is said to be part of LG’s Science Park project. The 170,000 square meters site will be built in Magok, Seoul and work is expected to begin from August. Once the construction is complete and ready by 2020, the park will house an estimated 20,000 R&D employees.
The entire Science Park itself is expected to be funded by LG’s investment of USD 2.93 billion, with the help of 10 subsidies. Moreover, LG Innotek and LG Life Science also revealed their plans to put in USD 295 million and USD 128 million respectively into the LG Science Park.
Eventually other LG companies also plan to move into the science park and bring in their own investments. These firms include LG Display, LG Electronics, LG Chem, LG Housys, and LG Uplus.
Meanwhile, LG Display, the world’s largest manufacturer of liquid crystal displays, reported that its operating profits were down 55.4% in the second quarter of this year, generating only USD 159.20 million in 2014’s second quarter, compared to last year’s USD 355.6 million.
LG Electronics, on the other hand, recorded USD 399.8 million in the second quarter of 2014, with a 26.5% increase from last year.