confident LG has ruled out a cut in staff

LG Electronics Asia insists it has no plan to cut production or the number of employees despite the global economic downturn.

President and CEO Woody Nam yesterday said the global economic recession might hit the US and European countries and cause market demand to decrease, but not in Asian countries. The appliances and mobile-phone markets in Asia had shown no signs of declining demand like in the US and Europe.

Moreover, the market share of LG in several Asian countries, including Thailand, has gradually increased.

"If market demand drops but our market share in several countries increase, it means that our sales revenue is growing as well. Even if the demand drops in the future, we will only cut the working hours, not the number of employees," he said.

However, LG has to control its operating costs by cutting unnecessary expenses. But Nam insisted the company would not cut its budget for research and development, and marketing activities.

Nam added that LG Electronics Asia's sales revenue this year could reach US$44 billion (Bt1.5 trillion). Total revenue in 2010 is expected to be $45 billion. The company aims to be among the top three players in the global market.

Hyun-woo Lee, managing director of LG Electronics (Thailand), said the company still maintained its marketing budget next year at 5 per cent of total sales revenue. It will continue marketing activities in Thailand to gear up for increasing market share in every segment.

He said LG expected sales revenue next year at Bt16.5 billion, increasing 14 per cent from Bt14.5 billion this year. It also aimed to increase its market share in every product segment from this year.

At present, LG is the leader for the seventh consecutive year in washing machines with a 25-per-cent market share. It has a 10-per-cent share in air-conditioning, 25 per cent in refrigerators, 12 per cent in LCD TVs, 33 per cent in plasma TVs, 11 per cent in the audio entertainment segment and 5 per cent in the mobile-phone market.

The company expects its share in the washing-machine market to rise to 27 per cent next year.

Alongkorn Chujit, deputy managing director of LG Electronics (Thailand), said next year it would continue its investment in building brand identity. It will refresh its brand image to be more modern with high technology. The company will also intensely market its premium products.

LG plans to expand 11 service centres upcountry.