LG Electronics (LG) has announced the establishment of a new research and development (R&D) subsidiary in Indonesia, spanning an impressive 40,000 square meters.
This move marks LG's first overseas research subsidiary for its Home Entertainment Company, effectively completing LG's local business operations, which include product development, production, and sales.
The opening ceremony took place on July 6 in Cibitung, Indonesia, and was graced by the presence of Park Hyoung-sei, the president of the LG Home Entertainment Company, along with government officials from both nations.
This newly established subsidiary will spearhead all R&D projects for products aimed at the global market, reaffirming LG's unwavering commitment to meeting the distinctive needs of local consumers as a renowned brand cherished worldwide. By consolidating product development and manufacturing operations under one roof, this subsidiary will enable LG to enhance efficiency in developing new models and accelerate the company's expansion in the global TV market.
Furthermore, LG intends to foster local product operation systems with a primary focus on R&D, aiming to create a diverse range of TV products tailored to the rapidly growing Asian market, particularly in Indonesia. As part of this initiative, LG launched the LG Electronics Indonesia R&D subsidiary in 2021, which now serves as the precursor to the current research subsidiary bearing the same name.
Additionally, last year, LG assembled a dedicated product development team under its Home Entertainment Company specifically for the Indonesian market. The newly established R&D subsidiary will play a pivotal role in facilitating LG's innovations targeting the global market.
This R&D subsidiary holds significant importance as it establishes a comprehensive local system that seamlessly integrates business operations. During his visit to Indonesia in April, CEO William Cho emphasized the significance of streamlining local operations to achieve unprecedented levels of quality, cost-effectiveness, and delivery. Strategically located in close proximity to LG's Cibitung production and Jakarta sales subsidiaries, this new R&D facility enables the entire supply chain to operate within the region.
To support the subsidiary's diverse research projects, LG has implemented training programs for TV R&D developers and plans to continue hiring experts with the goal of reaching 500 employees by 2025. The company also aims to strengthen ties with local universities through industry-academic collaborations, facilitating the discovery of talented professionals.
These initiatives establish an environment conducive to a fully localized R&D system, enabling swift and cost-competitive global product planning and development. Lee So-yeoun, the head of R&D in Indonesia, has assumed the position of 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.”
