Based on a survey of about 2,000 advertising and brand managers and academics worldwide, the online magazine Brandchannel.com said that Samsung retained its second position in brand recognition last year while LG overtook Japanese automaker Toyota in the third spot.

"As the Asia-Pacific brand with the most impact in 2004, Sony is working harder than ever to innovate in each of its various and varied divisions," Brandchannel said. "Part of Sony's headache must include the strong showing of Korean chaebol Samsung and LG."

Samsung, Korea's largest conglomerate, has been on a strong rise over the last couple of years by turning around perceptions about its products from cheap to smart, investing in quality design and technology, and surprising consumers with competitively priced, quality products, Brandchannel said.

"Although Samsung's businesses sprawl from semiconductors to oil and textiles, we assume the brand impact measured here is from its consumer electronics division Samsung Electronics," said the magazine.

Placing LG third among brands with the most impact, Brandchannel said that Korea's second-largest conglomerate appears to be trying to beat Samsung at its own game by countering a traditionally poor image with a better quality product.