LG Elec.-Philips establishe joint venture

LG Electronics and the Netherlands¡¯s Royal Philips Electronics will set up a cathode-ray tube joint venture. LG Electronics has procured 1.6 billion won in foreign capital through the establishment of the joint venture.

Vice chairman of LG Electronics, Koo Ja-Hong, and Philips CEO Gerard Kleisterlee held a press conference at Hilton Hotel on Monday to announce the establishment of a joint venture following the separation of their cathode-ray tube businesses. The two companies will invest 50% each in setting up the company.

Philips with a global market share of 13% is ranked second in the world while LG Electronics is ranked third with a market share of 11%. The new joint venture will have a joint market share of 24% making it the top company in the sector, beating out Samsung SDI, which has a market share of 22%.