No; it wasn’t the original iPhone. That honour belongs to the Prada phone by LG (LG KE850 Prada). Yes; LG was behind the first mobile with a capacitive touchscreen. The display was 3 inches in size and had a resolution of 240 x 400 pixels, supporting 256,000 colours. It ran a Flash user interface.
The Prada phone was announced in 2006 and hit the stores in May 2007, a few months before the iPhone. It won several industry awards. Sadly, I never got my hands on one.