LG Electronics Inc. (LG) achieved a consolidated revenue of KRW 84.2 trillion and an operating profit of KRW 3.55 trillion in 2023. This marks the third consecutive year of record-breaking annual revenue, despite challenges like an economic slowdown and reduced demand.
LG’s core businesses, home appliances, and vehicle components, displayed resilience, maintaining continuous growth for eight consecutive years. The combined revenue for these segments exceeded KRW 40 trillion, a substantial increase from KRW 18 trillion in 2015, now constituting 47.8% of the total revenue.
This growth is attributed to LG’s strategic efforts to enhance its business portfolio. The company expanded its B2B business, integrating new models like subscription services. Also, LG’s innovative content and service business model, leveraging a vast user base, contributed to robust profitability.
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LG aims to transition from a mature business-oriented structure to a future growth-oriented one. The newly established Overseas Sales & Marketing Company will guide this transformation, focusing on additional growth and expanded product coverage, especially in emerging markets.
Businesses
The LG Home Appliance & Air Solution Company achieved an annual revenue of KRW 30.14 trillion, marking eight consecutive years of growth. New business models, including subscription services, and expanding the B2B share contributed to this success. The company plans to shift toward future readiness, with a focus on Direct-to-Consumer initiatives, home appliance operating systems, and smart home solutions.
The LG Vehicle Component Solutions Company achieved an annual revenue of KRW 10.1 trillion and an operating profit of KRW 133 billion, surpassing the KRW 10 trillion revenue mark for the first time. The company aims for external and qualitative growth, focusing on in-vehicle infotainment and e-Powertrain areas.
The LG Home Entertainment Company recorded an annual revenue of KRW 14.2 trillion and an operating profit of KRW 362 billion. Despite a slight decrease in revenue, the webOS platform-based content and services business showed significant growth in operating profit. The company plans to strengthen its OLED and QNED lineups and transform into a media and entertainment powerhouse.
The LG Business Solutions Company reported an annual revenue of KRW 5.4 trillion and an operating loss of KRW 42 billion. The company is positioning itself with a competitive lineup of IT products, including gaming monitors and the LG gram Pro, and will actively seek business opportunities in distinct verticals.
LG’s diversified approach, strategic initiatives, and focus on future growth areas have contributed to its continued success, despite external challenges.
Image from LG Electronics corporate website