LG Honored With GM’s ‘Supplier of the Year’ Award
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By News Reporter
Company Achieves Highest Annual Revenue as Home Appliances and Vehicle
Components Continue Growth for Ninth Consecutive Year
SEOUL, Jan. 23, 2025 — LG Electronics Inc. (LG) announced its financial results for the year 2024, disclosing a consolidated revenue of KRW 87.73 trillion and an operating profit of KRW 3.42 trillion. This marks a new record for the highest annual revenue in the company’s history.
In terms of revenue, both the home appliances and the vehicle components business continued their growth for the ninth consecutive year, contributing to the company’s highest revenue achievement. The LG Home Entertainment Company and Business Solutions Company also saw an increase in revenue compared to the previous year.
Operating profit experienced a slight decline compared to the previous year, primarily due to external factors such as a delayed recovery in global demand for home appliances and increased logistics costs in the second half of the year. Despite these challenges, the company maintained a stable profit structure on an annual basis. This stability was achieved through qualitative growth resulting from business portfolio restructuring and the operating leverage effect from increased sales.
2024 Business Performance
The LG Home Appliance & Air Solution Company reported a revenue of KRW 33.2 trillion in 2024. After surpassing KRW 30 trillion in annual revenue for the first time two years ago, the Company has continued to demonstrate sustainable performance, achieving double-digit revenue growth last year. Operating profit reached KRW 2.04 trillion, overcoming the challenges posed by increased logistics costs. This marks the first time since 2021 that the Company has exceeded KRW 2 trillion in operating profit.
The Company’s qualitative growth was driven by changes in its business models, which include home appliance subscriptions and Direct-to-Consumer sales. Revenue from home appliance subscriptions surged by over 75 percent compared to the previous year, nearing KRW 2 trillion. In addition, the B2B segment, which includes heating, ventilation and air conditioning (HVAC) systems, continued to expand.
The LG Home Entertainment Company reported a revenue of KRW 15.23 trillion and an operating profit of KRW 315.9 billion in 2024. Sales of OLED TVs saw growth in regions such as Europe and Asia, driven by global sports events. Additionally, the webOS-based advertising and content business surpassed KRW 1 trillion in annual revenue.
The LG Vehicle component Solutions Company reported a revenue of KRW 10.62 trillion in 2024, marking the second consecutive year it has surpassed KRW 10 trillion in revenue. Despite experiencing a temporary slowdown in demand for electric vehicles, the Company demonstrated stable revenue growth for the ninth consecutive year, supported by a high order backlog. However, operating profit decreased to KRW 115.7 billion compared to the previous year, primarily due to increased development costs for new order projects and R&D investments aimed at transitioning to software-defined vehicles (SDV).
The LG Business Solutions Company reported a revenue of KRW 5.69 trillion in 2024, with an operating loss of KRW 193.1 billion. The increase in revenue was driven by a focus on customized commercial displays for sectors such as hotels, stores, businesses and schools, as well as premium IT products like the LG gram. However, the Company continued to face operating losses due to rising raw material prices for key products and intensified market competition.
2025 Business Directions
LG will consistently pursue qualitative growth through business portfolio innovation, despite the rapidly changing global market and competitive environment. Following the regrouping of the company’s business operation units at the end of last year, LG aims to enhance synergies between its businesses and improve operational efficiency. Additionally, LG will focus on strengthening the fundamental competitiveness of its businesses in terms of quality and cost, while securing a sound profit structure.
The LG Home Appliance Solution Company plans to launch new products with regional specialization and AI applications, aiming to expand sales by increasing sales of its volume zone lineups. The Company will also advance its AI home solution business to achieve its goal of “Zero Labor Home, Makes Quality Time.” Additionally, the subscriptions business will actively expand beyond Korea, Malaysia and Taiwan to include Thailand, India and other regions, continuously creating new opportunities.
The LG Media Entertainment Solution Company aims to expand sales of premium products such as OLED and QNED, while providing differentiated customer experiences through AI features. The Company will integrate operations of LG’s screen-based businesses – including TVs, IT devices and information displays – to enhance synergies between hardware and platform businesses. Additionally, webOS will be developed into an integrated content and services platform for both indoor and outdoor use through continuous content investment and partnership expansion.
The LG Vehicle Solution Company aims to focus on going beyond a supplier of vehicle components to becoming a provider of innovative solutions for the entire vehicular experience. The Company will focus on securing SDV capabilities in preparation for the future. It will also strive to maintain stable revenue based on its order backlogs while improving profitability through product mix enhancement and overall operational improvements.
The newly established LG Eco Solution Company aims to rapidly grow LG’s HVAC business into a global top-tier player by leveraging its core technological competitiveness in key components such as motors and compressors. The Company will focus on building locally self-sustainable production systems and developing region-specific solutions. It will provide comprehensive solutions optimized for various spaces, including industrial, commercial, public and residential facilities, ranging from large chillers to commercial and residential air conditioners.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on January 23, 2025, 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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By News Reporter
Eun Seok-Hyun Honored in Leader Category for His Contributions to the Mobility
Sector and the Advancement of LG’s SDV Technologies
LAS VEGAS, Jan. 9, 2025 — LG Electronics (LG) is proud to announce that Eun Seok-hyun, president of the LG Vehicle Solution (VS) Company, has been recognized with the 2025 MotorTrend Software-Defined Vehicle (SDV) Innovator Award in the Leader category. The award acknowledges his exceptional leadership and contributions to software-driven innovation in the automotive sector. Hosted by MotorTrend, a highly-respected U.S.-based automotive media company, the SDV Innovator Award ceremony was held on January 7 during CES in Las Vegas.
Eun Seok-hyun’s well-deserved recognition underscores LG’s growing influence in shaping the future of mobility and SDV technologies. Mr. Eun, who has more than two decades of experience working in the automotive industry, has been at the helm of the LG VS Company since December 2022. Throughout his career, he has focused on driving innovation in key areas such as infotainment, display, telematics and automotive vision systems.
A prime example of the Company’s progress under Mr. Eun’s leadership is the launch of LG AlphaWare in 2024. This groundbreaking suite of software solutions empowers mobility providers to overcome technical challenges and reimagine vehicles as “living spaces on wheels.” LG AlphaWare comprises five core solutions that seamlessly work together to enhance the in-vehicle experience. PlayWare delivers immersive in-cabin entertainment; MetaWare integrates augmented and mixed reality technologies; VisionWare provides AI-powered driver assistance; BaseWare serves as a comprehensive software backbone, offering versatile modules to enhance existing operating systems or support new platform development for OEMs; and OpsWare is a central operations platform that fosters collaboration among software developers.
LG has also achieved significant milestones in automotive security. Under Mr. Eun’s guidance, LG became the first company to obtain Common Criteria certification for V2X security stability, reinforcing its leadership in connected vehicle safety.
“It is an honor to be recognized at this year’s MotorTrend SDV Innovator Awards,” said Eun Seok-hyun. “This accolade is a testament to LG’s advancements in SDV technologies and to the dedication of our team in shaping the future of mobility.”
LG’s latest mobility solutions will be on show at CES 2025 in Las Vegas (January 7-10) in the company’s public and private booths.
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By News Reporter
Company Sets New Record for Annual Revenue
SEOUL, Jan. 8, 2025 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the fourth quarter and full-year of 2024, reporting a consolidated revenue of KRW 87.74 trillion and an operating profit of KRW 3.43 trillion. This marks a new record for the highest annual revenue in the company’s history.
Over the past four years, LG’s consolidated revenue has seen a compound annual growth rate of over 10 percent. The company has managed to grow while maintaining solid fundamentals amidst various external uncertainties. Strategic shifts in business models, including subscription services and Direct-to-Consumer (D2C) initiatives, have driven growth beyond the limits of its core businesses. The expansion of Business-to-Business (B2B) operations has also contributed significantly to the revenue increase.
Despite various challenges, profitability remained stable on an annual basis. In the second half of last year, unexpected global shipping cost surges and one-time costs for inventory rationalization impacted profitability. However, the overall annual business performance showed positive qualitative growth driven by business portfolio realignment.
In the fourth quarter of last year, LG recorded consolidated revenue of KRW 22.78 trillion and an operating profit of KRW 146.1 billion. This year, the company aims to accelerate qualitative growth through business portfolio transformation. LG will focus on strengthening fundamental competitiveness in areas such as quality and cost while maximizing efforts to secure a robust profit structure through fixed cost efficiency.
The home appliance business, a core segment for the company, is expected to surpass KRW 30 trillion in revenue for the second consecutive year. The strategy of expanding AI appliances and volume zone lineups, along with diversifying business models to subscription and D2C, has driven solid performance. Growth in the B2B sector, including heating, ventilation and air conditioning (HVAC), built-in appliances and component solutions, continues steadily.
LG plans to expand its subscription business to countries such as Thailand and India, in addition to existing markets like Korea, Malaysia and Taiwan. The HVAC business, which holds the largest share in LG’s home appliance B2B area, will now operate as an independent business unit to become a global top-tier, comprehensive air solutions business.
In the TV business, despite the overall market experiencing delayed demand recovery, demand in premium markets such as Europe is gradually improving. The company’s webOS-based advertising and content business continues to expand its ecosystem across TVs, smart monitors and automotive infotainment systems. Beginning this year, the company will seek to further expand the foundations of its advertising and content business through its OLED and QNED “Dual Track” strategy in premium markets, as well as meeting market-specific demands across the globe with volume zone lineups. Additionally, in accordance with last year’s organizational restructuring, the company plans to enhance synergies between hardware and platform businesses through the integrated operation of its screen-based offerings including TVs and IT and ID products.
The vehicle component business has experienced a temporary slowdown in demand for electric vehicles. Despite this, it has continued to achieve solid results and is on track to surpass KRW 10 trillion in revenue for the second consecutive year. The company will focus on responding to the transition to software-defined vehicles (SDV) and strengthening internal stability through profitability-centered operations.
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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By News Reporter
Only South Korean Company Recognized in Leisure Equipment & Products and
Consumer Electronics Category for 13 Years
SEOUL, Dec. 24, 2024 — LG Electronics (LG) has once again secured its position in the Dow Jones Sustainability World Index (DJSI World) for the thirteenth consecutive year. The DJSI World ranks the top 10 percent of the largest 2,500 global companies based on their economic, environmental, social and governance (ESG) practices, serving as a critical benchmark for investors assessing corporate sustainability.
Notably, LG earned the highest overall score in the Leisure Equipment & Products and Consumer Electronics industry category. Furthermore, it remains the only South Korean company to be included in this category for 13 years running.
Additionally, LG has been included in the DJSI Asia Pacific (top 20 percent of the 600 largest companies in the Asia-Pacific region) and DJSI Korea (top 30 percent of the 200 largest companies in Korea) for 15 and 16 consecutive years, respectively.
LG received high evaluations across various ESG areas, including environmental policy and management, human rights management, human resource management, customer relations, supply chain management and product responsibility management.
Under the ESG management vision of Better Life for All, LG is carrying out various activities with the strategy of Better Life for All, LG is carrying out various activities with the strategy of“3Cs” for the planet (carbon neutrality, circularity and clean technology) and “3Ds” for people (design for all, decent workplace and diversity & inclusion).
To achieve its 3C goals for the planet, LG has set ambitious targets, including reaching carbon neutrality in its product manufacturing process by 2030 and transitioning to 100 percent renewable energy by 2050.
Specifically, LG plans to reduce direct greenhouse gas emissions (Scope 1) and indirect greenhouse gas emissions (Scope 2) in the product production stage by 54.6 percent compared to 2017 levels. This will be accomplished through process improvements, the introduction of energy-saving technologies and the use of renewable energy. Notably, LG was the first company in the home appliance industry to obtain UN carbon credits in 2015.
In addition, LG is focused on reducing the unit greenhouse gas emissions of its seven major product groups (TVs, monitors, refrigerators, washing machines, dryers and home and system air conditioners) by 20 percent compared to 2020 levels during the product use stage (Scope 3). This commitment involves various activities aimed at improving the energy efficiency of individual products, thereby reducing overall carbon emissions.
As a member of the UN Global Compact and the Responsible Business Alliance, LG complies with international human rights and labor standards and is enhancing its human rights management processes to respond to strengthening global ESG-related legislation.
In the ESG evaluation and rating announcement results published by the Korea Corporate Governance Service this year, LG received an overall A grade for four consecutive years. LG also received an A grade for five consecutive years in the ESG evaluation conducted by the global ESG evaluation agency Morgan Stanley Capital International, gaining recognition for its ESG management performance from credible domestic and international institutions.
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By News Reporter
Successful Issuance of USD 800 Million Global Public Bond
Recognized Amidst Market Volatility
SEOUL, Dec. 11, 2024 — LG Electronics (LG) has been honored with FinanceAsia’s prestigious Achievement Award for the “Best Bond Deal” in the North Asia region, which includes Taiwan, Japan and South Korea. This recognition comes in light of LG’s successful issuance of global bonds worth USD 800 million in April this year.
FinanceAsia commended LG for navigating heightened interest rate volatility, driven by geopolitical tensions in the Middle East, to successfully issue public bonds. The bonds, issued in U.S. dollars, attracted strong investor demand and were offered in two tranches: USD 500 million bonds with a three-year maturity and USD 300 million bonds with a five-year maturity, the latter being labeled as a Sustainability Bond.
FinanceAsia’s Achievement Awards are among the top three capital market awards in the Asia-Pacific region, recognizing excellence in Asia’s financial markets. These awards, evaluated by expert panels of investment and finance industry professionals, celebrate exceptional accomplishments in the capital markets, honoring issuers, investors and intermediaries.
The winners of the Achievement Awards are determined through a rigorous process involving nomination, voting and discussions among key stakeholders, arrangers and panels. The primary award categories include Deal Awards, House Awards and Dealmaker Poll.
The selection criteria for the awards are based on four equally weighted factors: delivering successful outcomes for all participants, achieving the funding objectives of the issuer, overcoming market challenges and risks and demonstrating innovation to expand the market.
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