Report

Company Aims for Further Growth and Changes
to Enhance Customer Value in Rapidly Changing Global Market

SEOUL, Nov. 24, 2023 — LG Electronics (LG) today announced organizational changes to take another leap forward towards achieving the Future Vision 2030 announced in July. The changes are being implemented to strengthen organizational capabilities and business competitiveness to realize the vision of transforming into a Smart Life Solution Company that connects and expands various spaces and experiences of customers beyond home appliances.
A key piece of the forward-thinking strategy is the newly-established Overseas Sales and Marketing Company, which will report directly to LG CEO William Cho. The company will be led by Thomas Yoon, who previously served as the president and CEO of LG Electronics North America.
The Overseas Sales and Marketing Company will play a crucial role in accelerating change and growth as well as enhancing LG’s global brand power by discovering and developing opportunities to create customer value. The new organization will manage overseas sales subsidiaries in North America, Europe, the Middle East and Africa, Latin America and Asia; Global Marketing Group; and the Direct-to-Consumer (D2C) Sales Business Group.
The company will not only seek to strengthen executive capabilities in the overseas operations of strategically critical businesses including B2B operations, but also provide necessary support to bolster qualitative growth of all other business units by aiding the development of overseas sales expertise as well as accelerating the advancement of platform-based businesses and innovative D2C business models. The D2C Business Sales Group will take on the role of expanding customer contact points by strengthening Online Brand Shop (OBS) activities and customer data-based digital marketing capabilities.
While maintaining its agile and responsive decision-making system across all four business units, LG will aim to spur further development of original technologies in each business unit and support the company’s business transformation.
The Home Appliance & Air Solution (H&A) Company will establish an engineering sales division under the Air Solution Business to enhance the engineering capabilities to maximize business synergy in heating, ventilation and air conditioning (HVAC), its core B2B business area. In addition, the Home Beauty Business will be transferred from the Home Entertainment Company to the H&A Company to create synergy with existing strong product lineups in ‘Home’ spaces.
The Home Entertainment (HE) Company is set to further accelerate its transition to become a media and entertainment powerhouse. To strengthen the smart TV operating system webOS, the webOS SW Development Group will be established for direct reporting to Park Hyoung-sei, president of the HE Company. Also, the eXtended Reality (XR) Business Division will be established directly under the headquarters.
Leading the company since 2019, president Park has been promoted in recognition of his contribution to upgrading the company’s business portfolio, improving profitability of premium product lineups and growing the webOS platform while solidifying the company’s position in the global OLED TV market.
The Vehicle component Solutions (VS) Company will set up the Global Customer Strategy Division directly under its headquarters to establish an integrated strategy for order and sales management and strengthen marketing functions to accelerate the growth of the business.
The Business Solutions (BS) Company will expand sales and business operations in major regions such as North America, Europe, the Middle East and Africa, Latin America and Asia. The current B2B India Business Department will be upgraded into the B2B India Business Division to maintain continuous growth in the country.
All appointments are effective Dec. 1 with promotions going into effect on the first day of the new year.
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Company Joins Forces With Hyundai Motor Group and YouTube
to Deliver More Entertaining Infotainment Experiences With the New Genesis Models

SEOUL, Nov. 1, 2023 — LG Electronics (LG) has announced that it will apply its in-vehicle infotainment system – featuring webOS for Automotive, the company’s automotive content platform – to Hyundai Motor Group (Hyundai Motor Company, Kia corporation, Genesis)’s new Genesis models. On October 31, LG hosted Hyundai Motor Group (Hyundai) and YouTube at a ceremony in Los Angeles, U.S., to celebrate the introduction of webOS for Automotive to Hyundai’s luxury brand, Genesis, and to discuss collaborations to enhance the in-vehicle entertainment experience.
Hyundai’s new Genesis models are equipped with an infotainment system that takes full advantage of webOS for Automotive. Passengers in the front and back seats can now comfortably watch the high-definition content they typically enjoy on their smartphone or TV in compliance with driving and safety regulations. Infotainment displays can stream content with the immersive sound quality Genesis has engineered.
This collaboration is noteworthy as it marks LG’s first unveiling of its automotive content platform. LG introduced webOS for Automotive to extend its unique customer experiences and services to the road. Leveraging the proven popularity and convenience of webOS, which has reached cumulative sales of 200 million in the Smart TV market, the company has developed a new version for vehicles so that drivers and passengers can enjoy a wide array of over-the-top (OTT) services, including YouTube, in an optimized cabin setting.
LG, Hyundai and YouTube worked in close collaboration to bring YouTube’s native TV app to WebOS for Automotive, providing an optimized in-vehicle viewing experience. In addition, the YouTube app uses the newly developed native touch solutions on WebOS for Automotive.
Always at the forefront of innovation in the infotainment market, LG is constantly enhancing driving and chauffeur experiences by drawing on the extensive technology and insight it has accumulated over decades in the TV and home appliance spaces.
With webOS for Automotive, customers can comfortably enjoy the variety of content available on TVs at home within their vehicle. It provides differentiated mobility experiences that bring more value to life on the road by extending their living space to their vehicles.
“Thanks to technological development based on SDV, people can comfortably enjoy various video content in their vehicles,” said Kwon Hae-young, vice president of the Infotainment Development Center at Hyundai Motor Group. “We will continue to expand our collaboration with major global content companies to provide more diverse and valuable in-vehicle experiences to our customers.”
“YouTube provides breadth and depth of audio and video content that is optimized for in-vehicle entertainment. We are proud to be part of this collaboration that’s taking in-vehicle entertainment to the next level,” said Tony Archibong, managing director of Global Product Partnerships at YouTube.
“LG remains committed to introducing the most advanced vehicle solutions, including webOS for Automotive, as we strive to elevate the customer experience for drivers and passengers while also accommodating the diverse demands of car manufacturers,” said Eun Seok-hyun, president of LG Vehicle component Solutions Company.
Based on a rich understanding of customer and their living spaces, LG held a press conference at IAA Mobility 2023 in Munich, Germany in September, where LG CEO William Cho shared the company’s perspective and presented its vision for the future mobility industry under the theme of “Taking Life’s Good on the Road.”
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High Performance, Strong Profitability Reflect Progress in Advancing Busines
Portfolio, Accelerating B2B Business and Procuring New Growth Engines

SEOUL, Oct. 27, 2023 — LG Electronics Inc. (LG) today announced third-quarter 2023 consolidated revenue of KRW 20.7 trillion and operating profit of KRW 996.7 billion, both the second highest third-quarter figures in the company’s history. The noteworthy performance was driven by both the company’s core home appliance business and vehicle solutions, one of its future growth engines. Home appliances more than doubled its operating profit year-over-year while vehicle solutions recorded an all-time high operating profit.
The strong performance reflects the company’s smooth progress in the execution of its future vision for 2030, leading to solid revenue and profits despite a prolonged economic slowdown. The fundamentals of LG’s 2030 vision, announced last July, is to focus on B2B expansion, non-hardware business model innovation as well as the development and acquisition of new growth engines with the aim to go beyond a home appliance company to truly become a Smart Life Solutions company capable of connecting and expanding diverse spaces and experiences.
The revenue growth was greatly bolstered by expansion in B2B, including automotive parts and HVAC systems – a key factor behind the second highest third-quarter figure in the company’s history. Revenue in B2B grew significantly to account for approximately 35 percent of overall revenue this year.
B2B segments are less influenced by economic conditions compared to B2C, and stable revenue and profits can be expected once the business is properly set up. Another merit is the lock-in effect that can help promote the development of a strong long-term relationship with clients and customers. LG plans to develop additional growth opportunities in the area by going beyond merely supplying B2B products to expand into providing high added-value business solutions in connection to the supplied products. The goal will be to boost B2B revenue to over KRW 40 trillion by 2030.
Third-quarter operating profit increased by more than 30 percent both year-over-year and quarter-over-quarter. A key contributor to the high profitability was the company’s business model innovation – combining non-hardware solutions such as content and subscription services with traditional hardware products such as home appliances and TVs. In the past, a one-off revenue was recorded when a product was sold. This has now transformed into generating recurring revenue from the use of solutions on platforms installed in the millions of products used by consumers of LG devices.
In developing and acquiring new growth engines, LG aims to focus on investing in promising businesses that not only show high potential but can also create synergy with existing businesses. Investment into electric vehicle charging is a prime illustration of such strategy. The company has plans for global expansion beginning next year in collaboration with diverse partners.
The seamless operation and solid progress of the company’s 2030 vision’s three pillars – leading growth of company (B2B), generating profit (non-hardware) and boosting enterprise value (new growth engines) – is a strong demonstration of LG’s advancement toward achieving Triple 7 (average growth rate and operating profit of 7 percent or more and enterprise value to EBITDA ratio of 7 or more).
LG will continue to focus on accelerating its business portfolio transformation efforts into the fourth quarter, seeking to maintain high-growth in B2B with vehicle component solutions taking the lead, while at the same time growing sales of key product lineups as the end-of-year peak season approaches. Simultaneously, the company plans to optimize efficiencies through enhanced demand forecasting to support stable profitability going forward.
The LG Home Appliance & Air Solution Company generated third-quarter revenue of KRW 7.46 trillion and an operating profit of KRW 504.5 billion. The operating profit more than doubled year-over-year, attributable to strong competitiveness in overall business operations including manufacturing, procurement and logistics. Revenue maintained strong versus last year’s third quarter, aided by strategic repositioning of product lineups in response to softened demand as well as expansion of B2B lineups including HVAC, parts and built-in appliances. LG plans to leverage the electrification and decarbonization trend in HVAC systems to accelerate its B2B growth momentum. For example, in the United States, the company recently committed to a series of actions supporting California’s goal to install six million electric heat pumps by 2030. LG is also actively expanding its HVAC portfolio with new Dedicated Outdoor Air Systems. In the fourth quarter, the company will seek to spearhead a paradigm shift in home appliances with the LG ThinQ UP 2.0 expanding business into services and subscriptions. Four upgraded features for the ThinQ UP have already been released in North America, accelerating the speed of customer experience innovation.
The LG Vehicle component Solutions Company’s third-quarter revenue was KRW 2.5 trillion and operating profit KRW 134.9 billion – the highest among all third-quarter revenue and operating profit. The company is accelerating its pace of growth based on stable management of its supply chain and an order backlog that is expected to reach KRW 100 trillion by the end of the year. The business unit is expected to exceed KRW 10 trillion in annual revenue for the first time this year, setting the stage to become a key driving force in LG’s overall growth. Growth is still expected to be high due to the accelerating transition to electric vehicles and soaring demand for high added-value parts, despite some concerns of a temporary slowdown of demand in the automotive parts industry. In light of such developments, LG plans to maintain its growth momentum by focusing on high added-value projects and acceleration of regional production at the LG Magna plant in Ramos Arizpe, Mexico.
The LG Home Entertainment Company recorded third-quarter revenue of KRW 3.57 trillion and an operating profit of KRW 110.7 billion. The company maintained its profitable growth by effectively managing marketing expenses despite increased LCD panel prices, while also diversifying profit sources based on the growth of content and services business built on its smart TV platform. The company is accelerating its transition from a product-based business to a platform-based media and entertainment business as the content and services market continues to grow. To this end, in addition to expanding collaboration with various content providers, the company is upgrading TV operating systems to expand the content experience of customers. The number of TVs powered by webOS, the foundation of LG’s content and services business, is expected to reach 300 million units by 2026.
The LG Business Solutions Company’s third-quarter revenue was KRW 1.33 trillion with an operating loss of KRW 20.5 billion. Both revenue and profitability weakened due to the softening of demand for IT products. As challenging business conditions persist, the company continues to innovate customer experiences with premium IT lineups such as commercial displays and foldable laptops that provide customized solutions, while also making progress in fostering the electric vehicle charger business, one of LG’s new growth engines.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on October 27, 2023, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN. To participate in the conference call, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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Hi, I have a feature request for the sound out setting. I often connect my Bluetooth headphones to the TV. We don't use the internal speaker of the TV, we use the optical sound out setting whenever I don't use Bluetooth. It would make our lives a lot easier if the TV can remember the last sound out setting before connecting to Bluetooth and default back to this setting when the Bluetooth device gets disconnected. At the moment, each time I disconnect the headphones I have to go back into settings and change the sound out setting from internal speaker to optical again. 
Thanks and regards
Hubert

Second Highest Third-Quarter Revenues and Operating Profit
Driven by Home Appliances and Vehicle Solutions

SEOUL, Oct. 10, 2023 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the third quarter of 2023.
LG reported consolidated revenues of KRW 20.7 trillion and operating profit of KRW 996.7 billion in the third quarter of 2023, both the second highest third-quarter figures in the company’s history.
Driven by home appliances, the company’s major business and vehicle solutions, its future growth engines, LG accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023.
LG’s efforts to upgrade business portfolio to expand the proportion of its B2B businesses, including automotive parts and HVAC, based on its deep understanding and experience of customers accumulated through years in the consumer-facing business have also led to continued growth.
In addition to the rapidly growing B2B business, the company continuously boosted its B2C business by combining products with content and services and expanding high-demand lineups based on the competitiveness of premium products such as LG OLED TVs and LG Objet Collection.
In July, LG CEO William Cho announced his future vision to create customer value, secure future growth opportunities and transform into a smart life solution company that connects and expand spaces and experiences beyond home appliances. The positive results of the third-quarter despite the economic depression and maintaining growth momentum is evidence that the portfolio transformation to achieve the company’s future vision is progressing smoothly.
LG also made continuous efforts to improve business structure and apply digital transformation across the company to innovate customer experiences, which have led to the maximizing of efficiency of the entire value chain, including purchasing, manufacturing, logistics and sales.
The LG Home Appliance & Air Solution Company has seen significant growth in the B2B area with its HVAC solutions. The company aims to further expand its air conditioning business with heat pumps and ESS in response to the growing demand for eco-friendly and high-efficiency products in North America and Europe. And, launched in the third-quarter, LG ThinQ UP 2.0 – a smart home innovation that combines home appliances and subscription services – has already received positive responses from customers and is leading change in the home appliance paradigm.
The LG Vehicle component Solutions Company continued its rapid growth trend in the third-quarter based on an order backlog expected to reach KRW 100 trillion by the end of the year and stable supply chain management, with the pace of growth also accelerating. In terms of profitability, there is also an economic effect of scale due to the expansion of sales. The company is expected to exceed KRW 10 trillion in annual sales for the first time this year. LG is also speeding up the establishment of regional production bases in response to the growing demand to convert to electric vehicles from major global customers.
The LG Home Entertainment Company is accelerating its business transition from a product-based business to a media and entertainment platform as the content and service business continues to grow. To this end, in addition to expanding collaboration with various content providers, the company has recently started upgrading TV operating systems for the first time in the industry to expand the content experience of customers. The number of TVs powered by webOS, the foundation of the content and service business, is expected to reach 300 million units by 2026.
The LG Business Solutions Company continues to innovate customer experience with premium IT lineups such as commercial displays and foldable laptops that provide customized solutions, while also rapidly fostering the electric vehicle charging business, one of LG’s new growth engines.
These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics’ final earnings results, including net profit. Details regarding each division will be announced officially later this month.
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