LG Honored With Significant Number of CES 2024 Innovation Awards
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By News Reporter
Company Sets New Records for Second Quarter Revenue and Operating Profit
Through Balanced Qualitative Growth in Core and Future Businesses
SEOUL, July 25, 2024 — LG Electronics Inc. (LG) today announced second-quarter 2024 consolidated revenue of KRW 21.69 trillion and operating profit of KRW 1.20 trillion, reflecting an 8.5 percent year-over-year increase in revenue and a 61.2 percent surge in operating profit. These figures mark new records for the highest second-quarter revenue and operating profit in the company’s history.
Key drivers of this performance include the home appliance and vehicle component sectors, both achieving their highest quarterly revenues to date. Sales from LG’s Home Appliance & Air Solution Company and Vehicle component Solutions Company combined reached KRW 11.53 trillion, up 8.2 percent from the previous year. Both Companies also reported record-high second-quarter operating profits, totaling KRW 776.1 billion, which represents a 45 percent year-over-year increase.
These results highlight LG’s balanced growth across its core and future businesses. This growth demonstrates not only external expansion but also solid profitability, contributing to qualitative improvements in overall performance.
LG continues to transform its business portfolio towards a future-oriented approach, maximizing the potential of existing businesses while securing new growth opportunities. The company is also focused on rapidly advancing high-growth potential new businesses.
The fast growth in LG’s B2B sector significantly contributes to establishing a future-oriented business structure. Despite a temporary slowdown in EV demand, the vehicle component business continues to grow, supported by a diversified client base of electric and internal combustion vehicles and a strong order backlog. Additionally, LG’s heating, ventilation and air-conditioning (HVAC) business, which includes high-efficiency chillers, is exploring growth opportunities within the AI infrastructure sector.
In the B2C domain, LG is accelerating the integration of new business models that combine traditional hardware sales with intangible, non-hardware offerings such as content, services and subscriptions. The webOS content and services business is expanding beyond TVs into IT and infotainment, with projected revenues set to surpass KRW 1 trillion this year.
Additionally, the subscription business, which merges products with services, is gaining remarkable momentum. After achieving success in Korea, LG is now expanding this subscription model internationally. Last year, subscription revenue exceeded KRW 1 trillion, with growth accelerating this year. In June, 36.2 percent of major home appliances sold at LG Brand Shops in Korea were subscription-based. This model, particularly popular among young Korean customers, is now being introduced to global markets. For example, LG has launched LG Rent-Up in Malaysia, offering subscriptions for nine products, including washing machines, dryers and refrigerators.
LG is also expediting the advancement of new businesses. The smart factory business, which combines the company’s manufacturing expertise with AI, is expected to secure orders worth KRW 300 billion this year, expanding its customer base in industries such as semiconductors and biotechnology. Furthermore, LG’s partnership with ChargePoint, North America’s leading EV charging company, is set to boost the EV charging business by combining ChargePoint’s chargers with LG’s commercial display advertising solutions, ‘LG DOOH Ads,’ creating new market opportunities.
The LG Home Appliance & Air Solution Company generated second-quarter revenue of KRW 8.84 trillion and an operating profit of KRW 694.4 billion. Compared to the same period last year, revenue increased by 11 percent and operating profit by 16 percent, marking the highest revenue for a single quarter and the strongest second-quarter operating profit to date.
In the second quarter, LG’s volume zone strategy – designed to address polarized market demand – proved effective by diversifying its product lineup and pricing to meet growing needs in emerging markets such as Latin America, the Middle East and Africa. Contributions from new business areas, including subscriptions and Online Brand Shop sales, bolstered the strong performance. Looking ahead to the third quarter, LG intends to remain agile in adapting to market shifts and to continue expanding its B2B sectors, particularly HVAC and built-in appliances. The recent acquisition of smart home platform company Athom is expected to create synergies within the home appliance sector. Additionally, LG will leverage its top-tier global manufacturing capabilities to secure robust profitability.
The LG Vehicle component Solutions Company achieved second-quarter revenue of KRW 2.69 trillion and an operating profit of KRW 81.7 billion. Revenue increased by 1 percent year-over-year, and the operating profit turned positive. This quarter’s revenue was the highest for any quarter, and the operating profit was the strongest for a second quarter.
Despite a temporary slowdown in the EV market during this period, LG saw growth by effectively addressing increased demand for premium in-vehicle infotainment products and plans to continue expanding its vehicle components business. This strategy includes increasing sales of premium new products as well as safety and convenience solutions, such as Advanced Driver Assistance Systems, in line with existing order programs.
The LG Home Entertainment Company posted second-quarter revenue of KRW 3.62 trillion and an operating profit of KRW 97 billion. Revenue increased by 15.3 percent compared to the same period last year, driven by a recovery in demand in Europe, a key market for premium OLED TVs. Growth also continued in the webOS content and service business. However, operating profit declined due to increased costs, including rising LCD panel prices.
Overall TV market demand is expected to show modest growth in the third quarter compared to last year, with premium OLED TVs anticipated to outperform the broader market. LG will aim to maintain operational efficiency by minimizing cost burdens, such as rising LCD panel prices, through increased sales of OLED TVs.
The LG Business Solutions Company reported second-quarter revenue of KRW 1.46 trillion and an operating loss of KRW 5.9 billion. Revenue increased by 9.9 percent year-over-year, driven by expanded sales of strategic products such as LED signage, electronic whiteboards and gaming monitors. However, profitability was impacted by cost increases, including LCD panel prices, and ongoing investments in growth areas like EV charging and robotics.
In the third quarter, market growth for premium products such as commercial displays and gaming monitors is expected to continue. The Company will focus on expanding sales of strategic products and improving profitability through efficient resource management.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on July 25, 2024, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants should pre-register online to receive a private PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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By News Reporter
Good product design is all about understanding and meeting customers’ needs. As a leader in the home appliance industry, LG integrates ‘customer-centricity’ into every stage of the design process to ensure its products deliver a more convenient and emotionally satisfying user experience. The company continues to show the way forward, making innovative appliances and smart home solutions for a better life based on its ‘3F’ design philosophy.
The Essence of 3F: Fit, Feel, Finish
“LG uses the term ‘3F’ to refer to the appearance, performance and other tangible and intangible qualities of its products experienced by the customer,” said Chung Wook-jun, vice president and head of H&A Design Lab at LG Electronics’ Life Innovation Design Center. “In essence, 3F is a set of principles that guides the company as it weaves the core values of completeness, ease of use and emotional satisfaction into each product it makes.”
3F stands for Fit, Feel and Finish. ‘Fit’ refers to seamless (zero gap) product design and overall design uniformity, while ‘Feel’ encompasses the smooth and resilient operation of moving parts as well as the satisfying feedback that interfaces, doors and other components provide when handled by users. ‘Finish’ focuses on matching the right colors with the right materials and achieving a clean, consistent aesthetic across product lines. The definition of 3F has gradually expanded over time and now extends to elements such as ergonomics, user experience (UX) optimization and user interface (UI) usability.
Officially introduced in 2001, 3F is now deeply ingrained in the way LG works. The company even formed a specialized organization to focus on 3F, which collaborates closely with several departments – including product planning, design, development, quality control and sales – to maintain a cohesive approach to customer-centric design.
Customer-Centric Design Research
The core aspect of 3F work is to guarantee the completeness of every product LG develops. Through securing a high level of completeness in the development phase, the company helps to prevent potential quality issues from arising during production.
At the concept planning stage, LG identifies and addresses any deficiencies or inconveniences associated with previously released models to prevent their recurrence in new products. Using its own internally developed ergonomic standards, the company thoroughly evaluates products for ease-of-use and to determine if further improvements are needed. Prior to finalization and mass-production, LG re-evaluates its products using up to 160 different criteria to assess whether completeness has been achieved.
When a prototype is produced at the design verification stage, it is tested under actual usage conditions. Data-driven feedback derived from these tests – such as the precise measurement of the force needed to open an appliance’s door – enables the relevant departments to make necessary adjustments.
Quality testing at LG involves extensive processes to ensure products meet usage and reliability standards. Should a product fail any test, LG carefully identifies and addresses the root cause of the issue. Subsequently, the product undergoes hundreds of additional tests until it meets the company’s exacting internal standards. Multiple methods are employed to confirm that each unit produced matches the usability and reliability standards set during the development phase. The data gathered throughout these various processes is meticulously analyzed to refine future designs.
Subtle Details that Reflect LG’s 3F Design Principles
The recently launched LG SIGNATURE washer/dryer exemplifies the company’s commitment to its 3F design principles. Manufactured using the same methods employed to produce luxury goods, the washer/dryer successfully delivers the ‘high-end’ aesthetic and feel of LG’s original design concept. The attention to subtle details that is so much a part of 3F design can be seen in the dryer’s filter grip, which has been designed in accordance with knuckle-width studies and numerous customer acceptance surveys to provide optimal usability.
To enhance the sophistication and operability of the control knobs applied to its washing machines, LG conducted a comprehensive range of 3F research initiatives and even developed its own custom measuring equipment. The company’s efforts led to the creation of a control knob reminiscent of the center-console control dials found in luxury automobiles, providing a pleasingly premium look and feel while also contributing to a better user experience in both a practical and emotional sense.
Introduced last year on select LG refrigerator models, the Auto Soft Closing System is another example of LG’s customer-centric 3F design. The system uses dampers to ensure that the refrigerator door closes softly and quietly, enhancing usability, convenience and customer satisfaction.
The 3F design principle, which reveals LG’s strong commitment to the pursuit of perfection, is intertwined with another uniquely LG concept: ‘Affection-ism.’ Affection-ism could be described as a ‘design mindset,’ centering on caring for customers via the delivery of ‘Uncompromising Customer Experiences,’ ‘Human-centered Innovation’ and the ‘Warmth to Power a Smile.’ By staying true to its core values and customer-first philosophies, LG will continue to provide products that exceed expectations and make everyday life that much better.
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By Lleuadwen
Hi, I hope someone can help. I recently bought this TV but can’t find the Art Gallery app that is supposed to be part of the Home Screen. I have searched in apps but only third party art gallery style apps show. What am I missing here?
Thanks
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By News Reporter
LG NOVA InnoFest Lights the Halo of Innovation on Bold Ideas and Businesses With
Open Conference Program, Issues a Call for Startups for the Pitch Competition
SAN FRANCISCO, July 16, 2024 — LG Electronics (LG) has opened registration for the fourth annual LG NOVA InnoFest, taking place on September 25-26, at the Palace of Fine Arts in San Francisco. Hosted by LG NOVA, LG Electronics’ North America Innovation Center, the two-day event will bring together a cross-section of business leaders, innovators and investors across various industries to collaborate on solutions for a better future. This year’s event theme, “Lighting the Halo of Innovation” was designated to inspire attendees to focus on creating change and impact through co-creation and collaboration on bold ideas and businesses.
The event brings back its annual Startup Pitch Competition, where 10 selected startups will compete to win cash prizes, an audience with executive judges and recognition on stage. In this competition, LG is looking for bold startups with great potential, working on innovative ideas that can lead to transformative change in their markets.
LG Electronics’ sister company LG Chem is co-sponsoring this year’s startup pitch competition, adding a new Life Sciences category alongside CleanTech, HealthTech, AI, Smart Life and Open Innovation. The US Business Development team is seeking next-generation technologies that align with LG Chem’s sustainability mission and will sponsor a new “Innovation for Impact Award.”
For more details on each category, visit
link hidden, please login to view. Interested startups can submit their companies for consideration at . In addition to the monetary prizes and on-stage recognition, selected startups may have the opportunity to collaborate with LG to build businesses, participate in LG NOVA-sponsored marketing activities or qualify for investments from LG and its network. According to a 2023 from Boston Consulting Group, 79 percent of companies ranked innovation among their top three priorities and more than 40 percent expect to increase spending significantly. Today, innovation is being driven by a collaborative ecosystem. This interconnected approach, involving startups, corporations, academia and venture capitalists can result in groundbreaking solutions. Innofest seeks to illustrate the capabilities of this model, bringing together startups, investors and members of the innovation community to exchange ideas, encourage, support and discuss how they can all work together to spur “innovation for a better life.”
“Today the responsibility for innovation no longer sits solely with individual companies; collaboration is critical,” said Dr. Sokwoo Rhee, corporate executive vice president for Innovation at LG Electronics and head of LG NOVA. “Through InnoFest, we are bringing together the entire innovation ecosystem, from corporations to growing startups, to discuss creative and cutting-edge ideas that have the potential to shape our future.”
Last year’s gathering brought 90 industry-leading speakers together for 28 sessions focused on topics such as women in tech; balancing growth, profitability and impact; as well as diversity in tech. The event enabled people to join in the discussions on solutions to challenges in these key areas within the innovation community.
This year, according to Rhee, “InnoFest is boldly reimagining its program to be more interactive and engaging through a non-traditional conference format, emphasizing meaningful connections and inspiring conversations.” Attendees can look forward to influential speakers and keynotes, select curated panels and more dynamic discussion-based sessions.
“At LG, we believe in the power of optimism and innovation to change the world,” said Rhee, who invited startups to join LG at InnoFest 2024, “as we strive to create a brighter future together.”
Registration for InnoFest is now open at . Interested in speaking or moderating at the event? Learn more at .
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By News Reporter
Selected Finalists to Receive Funding to Develop and Launch
Their Gaming or Lifestyle App on LG Smart TVs
SEOUL, July 9, 2024 — LG Electronics (LG) announced a call for participants for its annual global webOS hackathon, with a focus this year on AI-based solutions and gaming services. Developers worldwide are invited to apply and submit their apps for a chance to win a significant monetary prize along with the opportunity to present onstage to LG executives in Seoul, South Korea, this September.
As a web-centric platform with an easy-to-use Smart TV software development kit, webOS enables developers to create third-party services and apps for millions of homes worldwide. The platform offers developers the tools to create apps and services that engage media, devices, security, networking, Smart TV functionalities and more. Through this hackathon, developers will have the opportunity to build and launch their app on LG Smart TVs, directly reaching consumers with their business.
Powering LG Smart TVs, including the award-winning LG OLED TV, for over a decade, webOS platform has been acclaimed as a friendly user interface, with easy navigation and customization to provide users with the premium entertainment experience expected from LG products. Now, with an always-growing ecosystem of global partners, the webOS platform is set to drive the next generation of service innovation.
In addition, LG is committed to expanding the webOS ecosystem by partnering with leaders in the gaming industry. This collaboration aims to offer customers a wide range of gaming services tailored to diverse preferences and interests, while enhancing the gaming capabilities of its exceptional OLED TVs. LG Smart TVs in global markets now feature an increasing array of cloud gaming services and family-friendly games.
To participate in the hackathon, applicants will need to submit their applications
link hidden, please login to view. Applications for the hackathon are now open and will close on July 26. Following the application process, participants will be invited to a webinar to learn more about the API and hackathon details. Finalists will be notified by mid-September. For more information about the hackathon, including detailed event schedules with terms and conditions, visit .
The hackathon will begin with a virtual webinar in early July. Participants will choose to create a game or lifestyle service app using either the Web or Flutter framework, with the opportunity to earn additional merit points for utilizing AI. The app, scenario and demo video must be submitted by August 26. Selected winning developers will then be invited to Seoul to present their ideas in front of top LG executives on September 27.
Cash prizes will be awarded to the top three winners of the hackathon, with a USD 100,000 Grand Prize for first place, USD 80,000 for second place and USD 50,000 for third place. The winners will also receive technical support leading up to the rollout of their app as well as on-device promotional opportunities after the launch. Winning apps must be ready for release on the LG Content Store by the end of June 2025.
“LG webOS Hackathon 2024 aims to attract creators worldwide who are building lifestyle solutions,” said Chris Jo, senior vice president of platform business at LG Home Entertainment Company. “LG is committed to engaging with the gaming community on a global scale, partnering with developers to nurture the next generation of talent using LG’s developer platform.”
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