LGEDI(LG Electronics Display Device Indonesia) is a subsidiary of LG Electronics(LGE) set up in the Bekasi industrial complex near Jakarta. Major products of this subsidiary are color picture tube(CPT) and monitor.At the time when LGE decide to set up a production facility in Indonesia, LGE and other Korean CPT manufactures were losing price competitiveness in the world market, mainly due to higher labor costs. Thus LGE decided to move some of its production facilities to Indonesia. LGE expected a positive synergy from vertical integration since it already had been operating a TV assembling plant in Indonesia. GSP customers duty benefits and relatively less competition in the local market also strongly encouraged LGE to choose Indonesia among several Southeast Asian countries such as Malaysia, Thailand, and Philippines.Despite these benefits, it was not easy for LGEDI to set up and operate a manufacturing plant in Indonesia due to lack of social and economic infrastructure. With LGE headquarter’s strong support and its own localization efforts, however, LGEDI successfully upgraded product quality and productivity in a short period of time. Consequently, it is considered now ad one of the best global sourcing bases that produce high quality, low cost CPTs for LGE headquarter.LGE is a good example that shows how korean firms that lost cost competitiveness due to higher labor could survive. In a world, LGEDI is a good case of successful global sourcing strategy.