[Executive Corner] A New Era of Customer Experience
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By News Reporter
“While IR is traditionally understood as Investor Relations, I view it as Insight Relations.” LG CEO William Cho has often expressed this sentiment, and I wholeheartedly share his point of view. Over the last 25 years, I have dedicated considerable time to understanding the intricacies of the world’s capital markets, including a stint as an analyst in the IT and tech industry. My experiences have shown me that the active exchange of information and knowledge between companies and investors is essential for mutual success. Today, I take great joy and satisfaction in seeing our company make a significant impact in the market and among investors by presenting our latest business strategies. Being part of this new leap forward is truly gratifying.
Last year, we announced a major business transformation, unveiling our vision to become a “Smart Life Solution Company” that connects customer experiences across home, commercial spaces, mobility and even the metaverse. To achieve this, we have set ourselves the “Triple Seven” target: seeking to reach seven percent average growth rate, seven percent operating profit and an enterprise multiple (EV/EBITDA) of seven, all by 2030. We also plan to invest over KRW 50 trillion for qualitative growth by the beginning of the next decade.
Naturally, the attention of Korean and global investors and analysts began to focus on our enterprise value. Numerous questions were raised regarding the foundation and substance of our “Smart Life Solutions,” our growth potential and whether the announced changes were valuable enough to warrant the long-term investment of assets. As an analyst who has witnessed LG’s various transformations and efforts over the years, the initial market reaction was entirely understandable.
Building on “responsibility” and “authentic communication,” which have been upheld as core values of investor relations (IR) for decades, we have expanded the involvement and role of top management, thereby enhancing trust in our corporate activities. We have also significantly improved policies aimed at increasing shareholder value. In addition, we are expanding efforts to contribute to the healthy development of capital markets from a macro perspective.
Communication Leadership
As the shift in business direction marks a critical turning point with regard to the company’s future blueprint, it was only natural for those leading the changes to step forward and take on the role of “communicators.” Accordingly, starting with the
link hidden, please login to view, our CEO, CFO and other top executives have engaged in open and candid communications at key IR events, such as the general shareholders’ meeting, corporate briefings for global investors and . Beginning this year, the regular earnings conference calls, which were previously led by IR and business unit management, are now overseen directly by the CFO. Active Policy Changes to Improve Shareholder Value
In addition, we announced a new three-year dividend policy (covering fiscal years 2024 to 2026) earlier this year aimed at enhancing shareholder value. This policy includes changes such as adjusting the dividend record date, changing the dividend cycle, setting a minimum base dividend and increasing the dividend payout ratio.
In August, we became the first among the affiliates of Korea’s top 10 conglomerates to announce a value-up participation disclosure aimed at enhancing corporate value. On October 22, we ,” a master plan to boost shareholder value and normalize the company’s valuation. To enhance predictability for investors, we will continue with the base (minimum) dividend of KRW 1,000 per share and semi-annual dividends, which both began this year, while also considering quarterly dividends in the future.
Growth with the Market
Most people reading this article are likely well aware that companies, investors and the market are interconnected in an organic relationship. LG Electronics aims for healthy, mutual growth with the capital market. To this end, we have developed an IR Activity Management System that quantitatively analyzes IR activities for publicly listed companies and are sharing our operational know-how both internally and externally. Additionally, we have been collaborating with the Korea Investor Relations Service (KIRS) for several years, giving lectures on the direction of IR activities related to ESG (environmental, social and governance) and consistently contributing to the development of the capital market.
Personally, as an analyst, I take great pride in sharing the knowledge and expertise I have accumulated from working at various companies and, through this, contributing to the positive cycle of market development alongside my colleagues.
Earlier this month, we were honored with the Financial Services Commission Chairman’s Award (Grand Prize), the highest award in the corporate category, at the 2024 Korea IR Awards hosted by the KIRS.* The award holds great significance as it acknowledges our contributions to maintaining systematic and sincere communications with the market, as well as our efforts to secure a stable investment base as recognized by capital market authorities and various experts.
Going forward, we will continue our commitment to proactive and genuine communication across all business activities to further build investor trust. I, too, will continue to strive to establish LG as an “Insight Leader” that drives healthy, mutual growth for the market, companies and investors alike.
By Park Won-jae, vice president and head of IR Division at LG Electronics
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* Hosted by KIRS under the Korea Exchange since 2001, the Korea IR Awards are presented annually to companies and individuals who have contributed to the healthy development of capital markets through effectively IR activities. Companies and individuals recommended by analysts and institutional investors are selected through a rigorous evaluation process conducted by a professional review panel and a selection committee.
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By News Reporter
As smart home and electrification technologies emerge as key trends in the home appliance sector, we are seeing an industry-wide shift away from simple product sales to a more service-oriented business model.
Smart home technology simplifies the management of complex devices through a range of helpful automation features. By utilizing insights gained from home appliances and Internet of Things (IoT) sensors, the latest smart home tech can better understand customer’s lifestyles and needs. This, in turn, enables the delivery of proactive, tailored services that reduce the burden of household chores. As the technology advances, we move closer to the realization of what LG calls the Zero Labor Home.
*This image is designed to aid understanding of a smart home solution that connects and controls devices within the home (Image Source: Feepik)
Smart home solutions have become a major focus not only for appliance manufacturers but also for IoT, telecommunications, construction and big tech companies. The introduction of smart home standards or protocols, such as Matter,1 is enhancing connectivity between appliances, IoT devices and home systems. Moreover, generative artificial intelligence (AI) and ambient computing2 technologies are making it possible for users to control devices and services through voice commands alone, saving them time and making life at home far more convenient.
*This image was created to aid understanding
One of the leaders in this space, LG recently introduced its latest AI Home solution, offering users the ability to control their home appliances and IoT devices through conversational voice commands. FURON, LG’s generative AI agent and the brain of the AI Home, is able to learn and remember users’ preferences for various devices and apply the appropriate settings in the given situation. Furthermore, LG AI Home connects seamlessly with appliances and IoT devices from a growing number of global brands and integrates flawlessly with various types of apps through ThinQ ON, LG’s AI home hub. The company is continuing to expand its AI Home ecosystem to offer users a broader range of smart home solutions and services.
The transition from fossil fuel to electricity-powered products is a significant global trend – one that is expected to accelerate due to the enforcement of international regulations aimed at mitigating global warming. Boilers are rapidly being replaced by heat pump heating systems, gas ranges by induction cooktops and gas dryers by heat pump dryers. Against this backdrop, LG is actively strengthening its research and development (R&D) programs to discover more efficient and reliable heat pump technologies. These efforts include the recent completion of the company’s “global R&D triangle” to create specialized solutions for cold climates, and the hosting of the Global Heat Pump Consortium, which was founded by LG in collaboration with international universities.
*This image was created to aid understanding
Moving forward, electrification technology will evolve into smart home energy solutions that optimize energy generation, storage and usage within the home. Ultimately, this evolution will give rise to living environments whose occupants can enjoy convenient cooking, heating and cooling – and a dependable supply of hot water – while simultaneously reducing household energy consumption and environmental impacts.
Known for its expertise in smart life solutions, LG has always emphasized the importance of innovation. LG’s core technologies, including the linear compressor (refrigerators), Direct Drive motor and TrueSteam technology (washing machines, Styler), and dual rotary and scroll compressors (air conditioners), have played a crucial role in the company’s rise to leadership in the global home appliance market. Looking ahead, the role of LG’s R&D division will be even more vital in discovering new electrification and smart home technologies. Through a commitment to excellence and a spirit of inquiry, LG will continue to lead the way to a better future.
By Oh Sai-kee, Head of LG Electronics Home Appliance and Air Solution R&D Center
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1 A smart home and IoT device connectivity standard developed by the Connectivity Standards Alliance (CSA). Matter enables seamless interoperability between smart devices and platforms from diverse ecosystems.
2 Ambient computing refers to technology that is able operate invisibly in the background, blending into the environment and working automatically without users noticing its presence. Also referred to as “invisible computing” or “disappearing computing”.
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By News Reporter
LG Aims to Expand Its B2B Offerings and
Build a Growth-Driven Portfolio in Emerging Sectors
SEOUL, Oct. 10, 2024 — LG Electronics (LG) held a press conference today at LG Digital Park in South Korea to share its future vision for the B2B sector with domestic journalists. The company outlined its goal for the LG Business Solutions (BS) Company to achieve KRW 10 trillion in annual revenue by 2030.
At its 2024 Investor Forum in August, LG highlighted the acceleration of its B2B operations as one of the central components of its business portfolio innovation strategy. By 2030, the company expects that its B2B concerns will account for 45 percent of total sales.
LG plans to strengthen its leading B2B businesses, such as hotel and hospital TVs, digital signage and premium laptops, while also focusing on medical monitors and electric vehicle (EV) chargers to build a sustainable, growth-focused portfolio.
Additionally, the company is rapidly strengthening its B2B capabilities across a wide range of areas, including vehicle components, HVAC systems, built-in appliances and smart factory solutions. The expansion into mobility and new business segments is part of the company’s strategy to accelerate its business transformation.
Leading LG’s flagship B2B businesses, the LG BS Company offers customized digital signage for various commercial spaces, including hotels, retail stores, offices, schools and hospitals, as well as IT products ranging from high-spec monitors to LG gram laptops, commercial robots and EV charging solutions.
The B2B sector is less affected by economic fluctuations than B2C, resulting in comparatively stable revenue and profits. Another advantage of B2B is the “lock-in” effect, which typically leads to close, long-term relationships with customers and a virtuous cycle of mutual growth.
“Over the past 66 years, LG has accumulated valuable insights into its customers and the diverse spaces they occupy through its consumer electronics business,” said Jang Ik-hwan, president of LG Business Solutions Company. “Going forward, we will leverage this expertise to offer tailored services and differentiated solutions to our business customers, further cementing our reputation as a trusted partner in the competitive B2B market. The BS Company is seeking to double its current revenue, reaching KRW 10 trillion by 2030.”
Driving the Commercial Display Market with Premium Signage and Hospitality TVs
LG has gained a leading position in the B2B display solution market thanks to its top-tier commercial display technology, premium digital signage and strong performance in the global hotel and hospital TV segments. LG’s information display business has experienced steady growth since 2019, recording an average annual growth rate of seven percent.
LG will continue to expand its display solutions business with products tailored for various spaces. The focus will be on premium fine-pitch LED signage (including All-in-One LED and Micro LED models), a product category that has seen a double-digit rise in revenue each year.
At the forefront of this expansion is the cutting-edge LG MAGNIT Micro LED display. LG MAGNIT is offered in various formats, including an all-in-one model for conference rooms, a model designed for virtual production studios, a premium home cinema edition and a model with a separate power supply unit (PSU). Since 2020, MAGNIT has recorded an impressive growth rate, with its annual revenue growth nearing a twofold increase on average over the past four years.
Additionally, LG is strengthening its portfolio of innovative digital signage solutions with products such as the next-generation LG Micro LED display, which is set to launch later this year. LG has employed the latest AI technology for its upcoming Micro LED, both during the production process and to create intelligent image-quality algorithms that help ensure superior visual performance. As part of the manufacturing process, AI is used to assess and select each of the product’s approximately 25 million LED chips (based on a 136-inch model). Meanwhile, the AI processor applied to the LG Micro LED display analyzes and optimizes color and brightness in real-time to deliver optimal picture quality.
To drive future growth, LG is actively working to identify potential demand and will keep on adding to its diverse lineup of tailored hardware and software solutions for commercial spaces.
Preferred by customers around the world, LG’s hospitality TVs boast many user-friendly features, including the ability to wirelessly mirror personal devices screens via Google Chromecast or Apple AirPlay. Hotel guests simply scan the QR code displayed on the TV to watch content from their device on the TV’s larger screen. To protect users’ privacy, viewing history and connection data are automatically deleted upon check out.
LG continues to maintain its strong leadership in the global hospitality TV market, and is collaborating with renowned international hotel chains including IHG Hotels & Resorts, and Hyatt.
In addition to its hardware offerings, LG provides a variety of cloud solutions through its online B2B platform, LG Business Cloud. These include the LG DOOH Ads digital signage advertising solution, LG SuperSign Cloud and Pro:Centric digital signage and hospitality TV content management solutions, and LG ConnectedCare remote monitoring and management solution.
To accelerate its expansion into new business areas and enhance overall competitiveness, LG is fostering strategic partnerships with global B2B companies. It recently signed a memorandum of understanding with office solutions provider Ricoh to explore the development of comprehensive enterprise services.
Strengthening LG’s Position as a Leading EV Charging Solutions Provider
LG is set to expedite its growth in promising new business areas, with the company’s EV charger business standing out as an emerging “unicorn.” Through strategic partnerships and investment, LG is poised to increase its presence in the global EV charger market.
LG opened its EV charger production factory in the U.S. (Texas) in January of this year and in June reached an agreement with ChargePoint, a leading provider of networked charging solutions for EVs in North America. The two companies are collaborating to expand their businesses by boosting product sales through distribution channels, reinforcing their product portfolios and jointly developing next-generation solutions. Additionally, LG is leveraging its extensive B2B sales network in the U.S., established through its nationwide success in hospitality TVs and digital signage, to actively target the country’s increased demand for EV charging infrastructure. This includes the necessary charging framework for hotels, shopping malls and retail stores, as well as highway charging stations and depots.
LG aims to secure around eight percent of the U.S. fast charger market by 2030 and position itself as a global top-tier provider of EV charging solutions.
At present, LG offers six types of EV chargers, including 7kW and 11kW slow chargers, and 100kW, 175kW, and 200kW fast-charging models.1 In addition, the company is producing a 350kW ultra-fast charger for the North American market and plans to release two slow-charging models – 30kW and 7kW – targeting the European market, all scheduled to launch by the end of this year.
Furthermore, LG is proactively addressing concerns over EV charger safety by implementing various fire-prevention solutions.
The charging control system applied to LG’s EV chargers prevents overcharging, which is one of the leading causes of EV charging safety incidents. The control system automatically stops charging when the vehicle battery reaches 80 percent during fast charging and 100 percent during slow charging. Additionally, LG chargers are equipped with a load management system that allocates electricity based on the installation site’s power capacity, ensuring stable charging even with limited power availability.2
The installation environment and consumer safety are key considerations in the design of every EV charger that LG makes. The company’s 175kW fast-charging model operates reliably in extreme temperatures ranging from -35 to 55 degrees Celsius and boasts an IP55 rating for water and dust resistance, along with an IK10 rating for impact resistance. Additionally, LG EV chargers comply with Restriction of Hazardous Substances (RoHS) regulations for the use of ten harmful chemicals such as lead, cadmium and mercury during the manufacturing process.
Prioritizing Medical Monitors as a Key Growth Engine
LG is focusing on the medical monitor sector as a new growth driver for its IT business, with plans to become a global top-three medical monitor provider within the next five years.
Medical monitors are required to meet the medical device regulations of each country, as well as medical imaging display standards, such as DICOM Part 14. Delivering excellent image accuracy and reliability, these monitors are considered premium products with high entry barriers, and are recognized as high-value-added products. According to market research firm Omdia, the global medical monitor market is expected to reach approximately USD 2.5 billion in value by 2030. In markets such as North America and Europe, hospitals are required to use medical-grade monitors for the reviewing of medical images obtained from X-rays, endoscopies and other procedures. With these strict regulations in place, the market for medical-grade monitors is expected to grow significantly in the future.
Launched in 2016, LG’s medical monitor business has steadily expanded in size, achieving close to double-digit annual growth in North America and Europe. Its product lineup, which is now available in more than 50 countries worldwide, currently comprises 14 types of medical monitors – including clinical, diagnostic and surgical models – and six types of digital X-ray detectors (DXDs).
LG offers healthcare institutions a diverse range of medical monitors, including surgical monitors with Mini-LED technology, specialized diagnostic monitors for mammography and high-resolution displays with screen-split features. By adopting a turnkey solution approach, LG has enhanced its competitiveness in the global medical display market and set a solid foundation for future growth.
In 2023, the company made significant strides in the medical display segment by securing a four-year, EUR 10 million contract with Centrale d’Achat de l’Informatique Hospitalière (CAIH), France’s public hospital IT purchasing center, for the supply of medical monitors. Looking ahead, LG plans to integrate AI technology into the data analysis and solutions derived from its medical monitors and digital X-ray detectors, and is also considering an entry into the medical imaging equipment sector.
LG’s success in the B2B sector owes much to the company’s technology and knowhow accumulated over many years in the B2C market. Recently, LG is in discussions regarding a contract to supply a U.S. financial services company with custom-built, high-resolution monitors for a period of five years. LG has supplied dual monitors to a U.S. financial media company and provided in-flight entertainment (IFE) displays to international airlines.
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1 LG’s 7kW and 11kW slow chargers and 100kW fast charger are available in South Korea, while the 175kW and 200kW fast-charging models are available in North America.
2 LG’s load management solution, which has already been applied to the company’s fast- and slow-charging EV charging solutions in North America, will be introduced in South Korea beginning next month.
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By News Reporter
The global market for smart home technology is experiencing unprecedented growth, due in no small part to the rapid advancements in artificial intelligence (AI). Boasting the ability to learn from people’s device-usage patterns and preferences, AI-powered home solutions can provide highly personalized experiences tailored to each customer’s unique needs.
LG is at the forefront of this trend, setting new standards and creating new possibilities and value with its advanced AI technology. Earlier this year, the company redefined AI as “Affectionate Intelligence,” emphasizing its commitment to creating empathetic and caring AI that delivers unique customer experiences. At IFA 2024, LG unveiled its vision for the future of home living under the theme “Experience, Affectionate Intelligence Home.” The company’s Berlin showcase highlighted how AI can transform everyday life by anticipating and meeting customers’ needs in a variety of different situations and scenarios.
IFA 2024 saw the debut of LG’s latest AI Home solutions, designed to bring the convenience and freedom of the “Zero Labor Home.” Offering far more than just simplified device control and connectivity, Affectionate Intelligence introduces empathy and care to the smart home environment, enhancing customers’ quality of life in myriad ways.
Central to LG’s vision is LG ThinQ ON, an AI hub that seamlessly orchestrates the operation of all smart devices in the home. Through ThinQ ON and innovations such as the LG Self-Driving AI Home Hub, LG’s booth gave IFA attendees an opportunity to see firsthand how AI can help create a comfortable and connected home experience. Individually and collectively, the company’s innovations exemplify the concept of Affectionate Intelligence, where AI not only responds to commands but also understands and evolves to meet changing needs.
Firstly, LG AI Home provides “Conversational Interactions,” allowing users to control home appliances and Internet of Things (IoT) devices with voice commands alone. The brain of LG AI Home is the company’s generative AI agent, FURON, which integrates advanced large language models (LLMs) such as OpenAI’s GPT-4 Omni. FURON combines learning and contextual understanding with real-time spatial sensing and user lifestyle data to optimize the home environment for each user.
As an example of how this works in practice, if a user says, “Hi LG, I’m going to sleep. Please turn off any devices that are still running,” the AI Home Hub will assess the situation and respond accordingly, such as offering to turn off the dryer if it has nearly finished its cycle. The hub can also tailor the environment for a good night’s sleep by playing the user’s preferred relaxation music and dimming the lights.
Additionally, FURON learns user preferences for different device settings, remembering and applying them at the appropriate times for personalized comfort and convenience. Designed with flexibility, FURON can incorporate additional LLMs to evolve with new technological developments.
LG AI Home also offers an “Upgradability” feature, allowing users to upgrade their existing appliances into AI-powered devices, delivering the convenience and comfort of LG AI Home while saving them the expense of buying newer models. For example, connecting a non-AI TV and an occupancy sensor to ThinQ ON allows LG’s intelligent system to pause content when the user leaves the room and resume it upon return. Similarly, connecting an air conditioner and a sensor enables automatic adjustment of airflow strength and direction based on the user’s position within the room.
LG has been at the forefront of smart appliance innovation since 2011 when it added Wi-Fi modules to its home appliances. Continuing its leadership, the company introduced ThinQ UP, leveraging on-device AI chips and appliance-specific operating systems for feature upgrades and peak operational performance. These customer-centric innovations enable conventional appliances to “evolve” into AI-powered ones, improving daily life and solidifying LG’s leadership in AI home solutions.
Finally, LG AI Home offers “Extensive Connectivity” with various global brands’ appliances and IoT devices, working smoothly with all kinds of apps, including calendars, transportation services and online shopping platforms. Users can effortlessly manage their schedules, control household devices and receive real-time updates for a more personalized and connected home experience.
LG is continuing to expand the LG AI Home ecosystem. Through its acquisition of smart home company Athom, LG has ensured that ThinQ ON can connect with over 50,000 devices and IoT appliances and is compatible with more than 1,000 third-party apps. This presents users with a wider range of smart home solutions and services to choose from, giving them the freedom to create the convenient home lifestyle they’ve always dreamed of.
While LG’s AI solutions work in perfect harmony to help realize the company’s Zero Labor Home vision – where household chores are automated, and people have more time to relax and enjoy life – the LG Shield security system vigilantly protects customer data around the clock.
A leader in AI home solutions, LG will continue to push the boundaries of customer-centric innovation. Before the end of this year, LG plans to introduce IoT devices, including motion and light sensors, air quality sensors, temperature and humidity sensors, and smart plugs, all designed to integrate perfectly with ThinQ ON. Customers will be able to purchase an AI Home package featuring these new devices with professional installation by qualified technicians. In addition, ThinQ ON will add support for the Athom ecosystem, allowing users to connect their AI home to an even more extensive array of products and services from other brands.
LG’s Affectionate Intelligence will soon extend beyond the home, connecting different spaces in people’s lives, from cars to commercial environments such as hotels and offices. The company is committed to creating a sustainable future where its intelligent and caring AI technology is always there, working autonomously and proactively to enhance every experience.
By Lyu Jae-cheol, President of LG Electronics Home Appliance & Air Solution Company
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By News Reporter
Over the last few decades, football has fully embraced technology in various ways. From wearable smart tech that acquires player data during games to goal line technology that ensures every legitimate goal is given, innovation has changed the way we play the beautiful game – and now how we experience it. In this spirit, LG Spain has teamed up with European giants Atlético de Madrid, a storied Spanish fútbol club with a passionate global fan base and rich legacy dating back to 1903, to deliver its cutting-edge signage products and technological innovations.
As an official sponsor of Atlético de Madrid for the next two seasons, LG Spain will install its LED signage throughout the magnificent Estadio Cívitas Metropolitano. The ellipse-shaped ribbon LED poised to adorn the stadium’s roof will not only deliver an immersive visual experience to fans, but also become one of the stadium’s most iconic design elements. Measuring 2,000 meters with mesh LED materials and a luminance of 7,500cd/m², this “sky ribbon” display is ready to captivate over 70,000 fans every week with its mesmerizing 360-degree visual effect.
At the entrance, four rounded outdoor LEDs will be installed, while a 45-square-meter LED banner display will welcome fans with LG’s exceptionally bright and high-resolution display technology. In addition, tunnel LED screens will be added to the wall and arches in the players’ tunnel to build anticipation and immersion as the players step out onto the pitch.
To ensure that this sponsorship transcends the pitch, LG Spain will support the club’s Ciudad del Deporte project, a state-of-the-art sports city expected to be completed by 2026 in collaboration with the local government. To this end, LG Spain aims to help modernize the sports city’s facilities through the wide implementation of its latest digital signage solutions.
This partnership underscores the confidence of Atlético de Madrid in LG’s display technologies, as this is not the first time they crossed paths. Back in 2017, LG Spain installed LED signage with a total size of 755-square-meter across its 88,000-square-meter stadium. This means its loyal fans are well aware of LG’s ability to vividly bring the match to life again with clear match replays and immersive club-related content.
“LG is the perfect partner to enhance the stadium experience for all spectators visiting the Cívitas Metropolitano,” said Óscar Mayo, director of Revenue and Operations at Atlético de Madrid. “Thanks to this new project, our stadium and future sports city will benefit from high-level display technology, exciting our fans that come from all around the world to see us play while setting a new technological standard.”
LG has a track record of installing highly impressive digital signage installations in arenas across Europe, including London’s iconic Wembley Stadium and ultra-modern Tottenham Hotspur Stadium, Germany’s Deutsche Bank Park Stadium and Finland’s Nokia Arena. These installations helped deliver unforgettable match experiences for millions of spectators, which drives LG to bring the exceptional visual experience to more arenas across the world.
To learn more about LG LED displays that are transforming the world of sports and beyond, visit
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