LG's record 2025 revenue tempered by lower profit due to weak TV sales, retirement buy-outs
Published: 30 Jan. 2026, 18:52
![LG Twin Tower in Yeouido, western Seoul, as seen on Jan. 9 [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/01/30/59f8e14a-0418-40c5-9ec3-9f8fd551ef49.jpg)
LG Twin Tower in Yeouido, western Seoul, as seen on Jan. 9 [YONHAP]
While LG Electronics posted record annual revenue last year, its operating profit fell 27.5 percent from a year earlier to 2.48 trillion won ($1.71 billion), weighed down by weak television sales and one-off costs tied to a large-scale voluntary retirement program.
The company announced Friday that its revenue rose 1.7 percent to a record 89.2 trillion won last year, marking a second straight year of all-time highs.
Results deteriorated sharply in the fourth quarter, however. LG Electronics reported an operating loss of 109 billion won, swinging from a profit of 135.4 billion won a year earlier. Revenue for the fourth quarter totaled 23.85 trillion won, while net loss reached 725.9 billion won. The operating result came in well below market expectations, which had forecast a modest profit. It was the company’s first quarterly loss since 2016.
Performance varied widely by business. The home appliance division continued to grow despite a challenging environment. The unit posted record revenue of 26.13 trillion won and an operating profit of 1.28 trillion won. Excluding one-time costs such as voluntary retirements, profit edged higher. LG said it mitigated tariff-related pressures through production optimization, pricing adjustments and cost controls.
The vehicle solutions division also delivered record results. Revenue climbed to 11.14 trillion won and operating profit to 559 billion won, both all-time highs. LG said a steady conversion of its order backlog supported growth despite a temporary slowdown in electric vehicle demand.
The heating, ventilation and air conditioning business recorded revenue of 9.32 trillion won and operating profit of 647.3 billion won. Profit rose slightly from a year earlier when excluding restructuring costs.
![LG Electronics' home robot, LG CLOiD, is seen at the company's booth at the Las Vegas Convention Center in Las Vegas on Jan. 5. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/01/30/0ccd4262-0a09-436a-a8c1-172f07d72531.jpg)
LG Electronics' home robot, LG CLOiD, is seen at the company's booth at the Las Vegas Convention Center in Las Vegas on Jan. 5. [NEWS1]
By contrast, the media and entertainment division, which includes televisions and other display-based products, posted a sharp downturn. Revenue came to 19.43 trillion won, while the unit reported an operating loss of 750.9 billion won, reversing its profits from a year earlier. LG cited slow recovery in global TV demand and rising marketing expenses amid intensifying competition.
Company-wide profit was also hit by voluntary retirement programs implemented in the second half of last year. LG incurred several hundred billion won in one-time costs as part of efforts to streamline its work force. The company said the move would help reduce fixed costs over the medium-to-long-term.
LG highlighted progress in higher-margin growth areas. Revenue from business-to-business (B2B) segments, including its Vehicle Solution and Eco Solution divisions, rose 3 percent to 24.1 trillion won. Combined operating profit from the two units exceeded 1 trillion won for the first time.
The company said growth also continued in non-hardware businesses such as webOS-based services and its direct-to-consumer operations.
LG Electronics’ subscription business also grew 29 percent to nearly 2.5 trillion won in revenue.
This year, LG plans to accelerate growth by expanding its lineup of AI-powered appliances and strengthening its presence in emerging markets. The company said it will also invest in built-in appliances, component solutions and future businesses such as AI-driven homes and home robots.
In televisions, LG aims to broaden its lineup beyond OLED models, adding competitive LCD products such as micro RGB displays, while continuing to expand advertising and content services based on webOS.
Vehicle solutions and HVAC remain central to the company’s long-term strategy. LG plans to deepen partnerships with automakers, improve operational efficiency and pursue opportunities in software-defined vehicles, AI-based automotive systems and data center cooling solutions.
LG also moved to bolster shareholder returns. Its board on Thursday approved a 100 billion won share buyback — the first in the company’s history — and decided to increase dividends by more than 35 percent from a year earlier.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]
with the Korea JoongAng Daily
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