UPDATE 1-LG Elec aims at 10 pct rise in 2009 air-con sales

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By Rhee So-eui

SEOUL, Jan 6 (Reuters) - LG Electronics Inc (066570.KS), the world's largest maker of home air conditioners, is targeting a 10 percent increase in air conditioner sales in 2009 despite the economic downturn, a top executive said on Tuesday.

LG posted a 4 percent growth in air conditioner sales in 2008 to $5 billion, below its initial target of $5.5 billion.

"We did feel the impact of the global economy, including the subprime crisis," Nho Hwan-yong, chief executive of LG's newly formed air conditioner division, told a news conference.

"This year will be difficult but it also presents a good opportunity to increase our market share, because small brands will have a hard time surviving."

Air conditioners rank among the most profitable items for LG, which makes mobile phones, appliances and televisions. LG spun off the air conditioner division from its appliance unit.

LG wants to expand its presence in the higher-margin commercial air conditioner market, dominated by Japan's Daikin Industries Ltd (6367.T) and Carrier, a unit of U.S.-based United Technologies Corp (UTX.N).

Installing and managing air conditioning and heating systems for large buildings or towns require expertise and could generate larger sales and profits, LG officials say.