ASAN, South Korea -- Samsung Electronics Co. and Sony Corp. had to overcome cultural barriers in their joint liquid crystal display venture but by doing so created a new market, according to a top Samsung executive.

The two global electronics giants established S-LCD Corp. in the city of Asan, about 55 miles south of Seoul, in April 2004 to produce panels to meet soaring demand for flat screen televisions.

Sony's Japanese devotion to detail ran up against Samsung's Korean-style emphasis on speed, Lee Ki-tae, president and CEO of Samsung's LCD business, told reporters.

"So at first it worked as a cultural barrier between the two companies or two countries but now it is becoming a synergy," he said. "They are very detail oriented and we are very speedy at working."

Mr. Lee made the comments last week but they were embargoed for release by Samsung.

Global demand for flat screen televisions has soared as consumers abandon their bulky cathode ray tube sets for the thinner, sleeker versions.

Samsung said Thursday it expects the global market for LCD TV panels to grow 53 percent to 73 million units in 2007 from this year.

Samsung and Sony currently produce 40-inch and 46-inch panels using Samsung technology at their "seventh-generation" production line, a sleek, state-of-the art facility staffed by industrial robots and humans working in special "clean rooms."

"We created the 40-inch LCD TV market with Sony," said Lee, who attributed its success to the popularity of Samsung's Bordeaux and Sony's Bravia models, which both use panels made at the facility in Asan's Tangjeong district.

"Sony's role in opening that market and realizing growth in the market has been quite important," he said.

The companies, whose products such as televisions and personal computers compete against each other in global markets, cooperate in LCD panels to ensure stable supply.

Lee also said the companies are on track to start up their "eighth generation" line at the Tangjeong facility ahead of schedule.

Original plans were for production to begin in October next year, Lee said, but favorable weather conditions and other factors mean construction of the facility is proceeding faster than envisioned.

"We are trying to contribute for the Christmas season (of 2007)," he said. "That means we are trying to run ahead of our schedule."

Samsung says the facility will mainly produce LCD panels for 52-inch or larger televisions.

"We strongly believe that the market for 50-(inch) and larger LCD TVs is coming next year," Lee said.

Meanwhile, rival Sharp Corp. of Japan has already moved ahead.

The Osaka-based maker of Aquos model TVs cranked up its new state-of-the-art LCD manufacturing facility in central Japan in August ahead of schedule.

"Sharp has very advanced technology," Lee said. "They started their eighth-generation line operation not so long ago. So they are starting to pioneer the 50-(inch) class market ahead of us."

Lee was mostly bullish regarding the LCD market outlook for next year.

"I expect a tough market in the first quarter (of next year), which is a seasonally weak period," he said. "But the second quarter will see a balance in supply and demand and then a supply shortage in the second half."