EQUIPMENT: "We will further consolidate our leadership position also in the GSM market"

LG is looking at Rajangaon in Pune for manufacturing of mobile phones in

India. Are you looking at both CDMA and GSM handsets or are you looking to

manufacture only GSM handsets in the country?



The mobile phone plant is expected to start production by 2005. Initially we

will manufacture only GSM handsets but gradually we would step into CDMA

handsets.

In India, LG is strong on the CDMA front, yet you plan to manufacture GSM

phones initially. Is there a specific reason to do so?

Ssang-Su Kim, vice chairman and CEO, LG Electronics

Our announcement, is in line with our strategy of attaining an overall market

leadership in India on the GSM front after being leaders in the consumer

electronics and home appliance segment.

What is the total manufacturing capacity of the factory and what is the

investment that LG is planning?



By 2010, the company aims to produce 20 million units of which 50 percent

will cater to the export market. The facility will involve an investment to the

tune of $60 million by the year 2010.

What is LG Electronics India's telecom strategy, both on the handsets as

well as the infrastructure front?



We plan to set up a mobile phone plant in India as it will give us an edge

over other players in terms of quality, production, and subsequent market share.

We are investing close to 2—3 percent of our turnover towards research and

development of products and hope that we will soon be able to establish India as

an R&D hub for consumer electronics, home appliances, and GSM phones.

When are you planning to launch EDGE-enabled handsets in the country and

what is the expected cost of these handsets?



Launch of EDGE-enabled handsets is due in a month or two. We are presently

doing a feasibility study of this model and will only be able to decide on a

price tag after the study.

Presently, LG is the number one mobile vendor in the country, by when do

you plan to be the number one on the GSM front also?



With our firm resolution to realize our objectives, we will further

consolidate our leadership position also in the GSM market.