Introduction
LG Electronics, headquartered in Seoul and led by CEO William Cho, is a global leader in consumer electronics and automotive solutions. In 2024, LG posted record-high revenue of KRW 87.7 trillion and an operating profit of KRW 3.4 trillion, supported by robust appliance and vehicle-component divisions, though rising costs led to a significant net profit decline.
History & Milestone
Originated in 1958 (GoldStar), rebranded to LG Electronics in 1995 .
First to record annual revenue growth for nine consecutive years in appliance and vehicle components .
Product & Services
Home Appliances: Refrigerators, washing machines, HVAC systems.
Home Entertainment: TVs, audio systems.
Vehicle Components: Electric vehicle parts, expanding in South Korea and beyond.
Business Model & Strategy
LG earns revenue primarily from sales of consumer electronics and automotive products. It is now accelerating a shift toward B2B growth, including HVAC and EV components, and exploring an IPO for its Indian affiliate .
Market Presence & Financials
LG maintains a strong global footprint with balanced growth across appliances and automotive sectors. Despite net profit decline, strong revenues and strategic pivots support financial resilience.
Leadership & Culture
CEO William Cho’s leadership emphasizes innovation and strategic evolution (“Future Vision 2030”). Executives are committed to diversified growth and adapting to market dynamics .
Controversies & Challenges
LG reported its first Q4 2024 net loss since 2023 — attributed to weak demand, logistics costs, and sluggish performance in TVs and appliances .
In Q2 2025, profits dropped 3.1% due to intensified competition and U.S. tariffs; the company plans to shift some production to the U.S. and Mexico to mitigate cost pressures .
Future Outlook
LG will continue its manufacturing relocation strategy and advance into high-growth sectors like HVAC and automotive electronics, aiming for long-term qualitative growth driven by “Future Vision 2030” initiatives .