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Week-end Edition - Day 2 & Day 3 - IFA International

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Exclusive Interview

Exclusive Interview Havis Kwon Joining LG in 1980, Havis Kwon has held several important positions including vice president of PC manufacturing and executive vice president of LCD TVs. He was appointed CEO of the Home Entertainment Company in October 2010. New Era of TV with OLED TV “In the history of television, there have been very few innovations as impactful as the coming of OLED TV,” says Havis Kwon, President and CEO of LG’s Home Entertainment Company. “We say The Ultimate Display because LG OLED TV is truly above all expectations and beyond everyone’s imagination with uncompromising picture quality and beautiful design. This year, we plan to make OLED synonymous with LG.” OLED TV’s WRGB technology follows from years of R&D at LG, the company behind the world’s first commercialised 15-inch OLED TV in 2009. LG’s 4 Colour Pixel technology relies on a white subpixel to perfect the colour output. Unlike LCD or LED displays, which require backlights, OLED TVs generate their own light. Furthermore, by utilising carbon fiber-reinforced plastics (CFRP) for the exterior, LG engineers were able to create a final product with a thickness of only 4mm and weighed only 10kg. “This year, we plan to make OLED synonymous with LG.” LG: TV User Experience Must Evolve Access to more content in the living room makes home entertainment a more compelling offering Havis Kwon, President and CEO at LG Electronics Home Entertainment Company, told IFA International last year that his mid-term goal was to bring integrated 3D eco-systems into the mainstream. This year we approached Mr Kwon for an update… [ Interview by Richard Barnes ] The global 3D TV market is projected to grow to double the volume of last year by the end of 2012. The positive media coverage and sales figures show that LG’s CINEMA 3D Smart TV has contributed to this remarkable growth with its product leadership, and the perception that 3D TV=LG. Now families enjoying LG 3D TVs at home can choose from a plentiful selection of 3D content via LG Smart World, regional broadcasters and other providers. These entertainment sources also help to grow the 3D ecosystem, with LG recently expanding its leadership by providing the first crop of 3D game apps for Smart TVs. 3D is a key factor for delivering an immersive and exciting home entertainment experience. Therefore, LG will continue to grow 3D ecosystems, building on the momentum that we have gained so far. What trends will drive the TV market in the coming years? Three trends emerge for the short-to-medium term. First, next-generation displays such as OLED TVs and UD TVs will play a big role to push technology forward and expand the market. Second, more and more entertainment options will be available, notably 3D content, and also games, movies, locally-targeted VOD services and Smart TV apps. Third, the user experience (UX) of TV will continue to evolve to be more intuitive and easy. The latest TVs allow users to enjoy an exploding amount of video content and applications compared to conventional TVs. However, it seems that content cannot be fully utilised since UX is still at its basic level. The UX must also evolve as the content for smart TV increases and users’ expectation of the devices go higher. How much market share will OLED achieve in the next two to three years? The industry anticipates the OLED TV market will reach Havis Kwon President and CEO at LG Electronics Home Entertainment Company around 20,000 units this year and then grow dramatically to about 700,000 units in 2013. Market share depends on how soon production stabilises regarding cost and equipment. OLED TVs will become mainstream when the price is 1.5 times current LED TV prices. What other areas of the Home Entertainment market are strong for LG and why? Access to a greater variety of content in the living room has made home entertainment a more compelling offering. There is a lot of room for LG to complete consumers’ home cinema experience with more advanced products that complement its range of TVs. For instance, an LG 3D Home Theater System or the innovative Soundbar add another dimension to the viewer’s experience with LG’s CINEMA 3D Sound technology. LG also provides industry-leading peripheral devices such as its 3D Blu- Ray player with built-in HD TV Recorder. Growth in the personal display category has also been impressive. Including its new IPS monitors, LG is expanding the display options to suit everyone from average consumers to graphics experts. How important is IFA as part of LG's marketing strategy? This year’s IFA is the perfect forum to remind global consumers that LG’s OLED TV really is the ultimate display. Aside from the OLED TV, IFA is a great platform to show LG’s advancements and gives consumers and wholesalers a hands-on look at LG’s integrated home entertainment lineup. 20

Exclusive Interview Aiming for the Ultimate LG takes OLED TV technology to the next level Ilgeun Kwon, Senior Vice President, Head of TV R&D Laboratory at LG Electronics, tells IFA International why the industry “has never seen anything like” the LG 55-inch OLED TV… [ Interview by Richard Barnes ] It’s what we like to call an ‘ultimate display’. It delivers an unparalleled viewing experience, previously unattainable picture quality and a stunning design. The industry hasn’t seen anything like this before. You released the first prototype in January and we saw an updated model at the World IT Show (WIS) in Seoul. What have been the main developments in the interim? In terms of the actual display, the OLED TV that we showcased at WIS in May was the same as the one we unveiled at CES in January. However, the WIS version and the IFA 2012 version come in three design options — with a versatile floor stand, a floating table stand or a perfect wall mount. These three types will be used on the models being launched in the second half of this year. Thanks to the incredibly slim design and light weight of our OLED TVs, all three designs maximise the immersive viewing experience, while offering various options to customers for their perfect interior design. What are the LG OLED TV’s main advantages? To put it simply, the LG OLED TV delivers better picture quality and design thanks to WRGB technology. LG’s four-colour pixel technology adds a white sub-pixel to the conventional RGB sub-pixels. By widening the colour range, LG’s four-colour pixel technology improves OLED pixel’s ability to express the colours of reality. A colour refiner enhances the image, resulting in pictures that are vibrant, natural and comfortable to the human eye. The screen also delivers a perfect viewing experience with infinite contrast from self-illuminating pixels that prevent distortion or loss of contrast, regardless of ambient brightness or viewing angle. The design includes a ‘paper slim’ 4mm-thick panel and a very light overall weight. This was possible because WRGB technology allows for thinner panels and the carbon-fibre reinforced plastic [CFRP] used for the outer shell is much lighter than previous materials and covers the rear of the TV seamlessly. Given all of these benefits, we strongly feel that the LG OLED TV offers the ultimate viewing experience. What has been the most challenging aspect of developing OLED TVs? The initial investment cost and limited production yield have been the main challenges. However, WRGB technology enables cheaper and faster panel mass-production than RGB technology. We are already seeing remarkable improvements in efficiency, which will only accelerate as production volume increases. Therefore, LG expects to have more competitively priced OLED TVs on shelves sooner than our competitors. Apart from OLED, what else are you prioritising at IFA? Our product line-up at IFA demonstrates our leadership Ilgeun Kwon Senior Vice President, Head of TV R&D Laboratory at LG Electronics “LG OLED TV delivers an unparalleled viewing experience, previously unattainable picture quality and a stunning design” in offering the optimal 3D experience. With cinemascreen design and 3D soundzooming technology, our products offer consumers an immersive 3D experience. In addition to 3D leadership, we can boast innovative smart-TV features and content, such as 3D game apps, HbbTV [hybrid broadcast broadband TV] and much easier connection to other devices through MHL [media high-definition link]. At IFA, visitors can experience the integrated 3D and smart ecosystem to get a sense of what advanced home-entertainment really means. How important is IFA to LG's marketing strategy? IFA is a unique opportunity to showcase the products that have been receiving such positive responses worldwide, to demonstrate our cutting-edge technology and to introduce our overall strategy. We are particularly looking forward to unveiling our OLED TV to European consumers for the first time since the Monaco PR convention in May. Hall 11.2 Stand 101 ILGEUN KWON Ilgeun Kwon joined LG Electronics in 1986. He oversaw the creation of the company’s first digital TV and world’s first Time Machine TV. As head of LG’s TV R&D laboratory, he has been closely involved in product development since 2007. 84-INCHES OF ULTRA EXCELLENCE Last week saw the launch of LG’s new 84-inch ultradefinition 3D television in Korea. Priced at around ,000, the new TV boasts four times the resolution of existing full-HD TVs, offering a clearer and more realistic picture. “If it was HD that prospered in the past decade, it will be UD technology that will make its way in the upcoming five years,” Ilgeun Kwon told The Korea Herald. “And LG plans to take the lead in it.” LG will shortly launch the new UD TV in North America, Europe, Asia and Latin America. IFA International • Saturday 1 st & Sunday 2 nd September 2012 21

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