Europe is to play the central role in the global ambitions of LG Electronics
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"The lessons LG learns about success and failure in its approach to the European market and consumers will determine how we adopt and implement such strategies in other regions worldwide," said LG Electronics chief executive and vice-chairman Yong Nam (pictured).

In a change of strategy it describes as "seismic", the company plans to increase "significantly" its investment in its European operations in a bid to capture a substantial market share within the next two years.

It will add more than $150 million to its European marketing budget this year and will put more than $3 million into topping up the money it already spends in product design in Europe. The company's European Design Centre was opened by the Duke of York in London yesterday and will house 22 multinational designers whose job will be to develop products specifically for the European market.

LG also intends to increase its European workforce and appoint Europeans to more than a third of its country president posts - currently all held by Koreans.

"Europe is the ultimate test-bed for our new approach due its diversity, the education and engagement of its consumers, its highly competitive markets, and the fast-pace of change and adoption of new technologies," said Mr. Nam.