LG Group has decided to open up a market worth up to 400 billion won to small and mid-sized companies, and also invest 800 billion won into LG Science Park that is to be created in western Seoul, the company said on Monday.
The 400 billion won involves markets for SI ― system integration ― advertisement and construction, with LG opening up the bidding to its smaller vendors and encouraging them to lead up to 50 percent of the projects.
Security will be only issue that LG will close its doors on, the company explained, saying that everything else that’s not security-sensitive would be open to its suppliers.
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An artist’s rendering of LG Science Park in Magok, western Seoul (LG Group) |
“We are giving them a piece of our own pie,” an LG official said.
At the same time, LG plans on applying to Seoul City this month to add another 40,000 square meters of land to the industrial cluster that will undergo construction in Magok of western Seoul, next year.
The cluster was included in LG’s blueprint for spurring the integration of electronics, chemicals and communication industries, and developing a high-tech research and development center to help create an eco system that promotes mutual growth between large companies and SMEs, the company said.
The efforts reflect a move to join the Park Geun-hye administration’s initiative for promoting fair trade in all sectors, while also seeking an integration of different high technologies and industries to help mold a “creative economy.”
The science park LG plans to construct in Magok is one example of pursuing this creative economy, LG executives said, noting that the company is planning to invest an additional 800 billion won to expand the area to 170,000 square meters from 130,000.
This means that LG would be investing a total of 3.2 trillion won by 2020 when the industrial cluster will be completed, up from the originally planned 2.4 trillion won.
The number of LG affiliates that will be housed in the park is also to be increased to 11 from six, with the addition of other affiliates such as LG Uplus.
Currently, LG Electronics, LG Display, LG Innotek, LG Chem and a couple of other affiliates are awaiting entry.
The number of the research staff will rise to 30,000 from the previously expected 20,000, LG said.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
