Philips is investing $1.6bn in a joint venture with LG Electronics of S. Korea, the largest ever investment by a foreign company in the Asian country.The agreement, the largest single deal in Philip's history, comes against a background of concern about the stability of S.Korea's financial system. Recently Daewoo, the country's second biggest conglomerate, narrowly avoided bankruptcy with debts of $60bn. The agreement gives Philips' Flat Display Systems (FDS) division a 50% stake in LG Electronics' LCD (liquid crystal displays) business, creating the world's largest supplier of flat panel displays. The venture aims to satisfy demand, mainly created by the introduction of faster, higher performance notebook computers and more attractive and comfortable LCD monitors, that is currently outstripping supply & has led to a global shortage.
