How Does LG Company Work?

LG Electronics is a global leader in technology and consumer electronics. It is recognized for its extensive range of products, including televisions, home appliances, air solutions, monitors, and automotive components. The company's operational focus includes advanced manufacturing, continuous technology development, and a strong emphasis on smart life solutions, integrating artificial intelligence across its product lines.

LG Chem operates as a leading chemical company with key focuses on petrochemicals, advanced materials, life sciences, and battery materials through its subsidiary LG Energy Solution. The company is dedicated to strengthening its position in new growth areas such as eco-friendly solutions and battery materials, while also streamlining non-core operations.

LG Uplus is a telecommunications provider that enhances customer communication experiences. It achieves this by integrating AI-based differentiated services and maintaining a strong focus on quality and security. The company's corporate infrastructure and smart home segments have been significant contributors to its revenue growth.

The company's commitment to innovation, particularly in AI, and its strategic diversification into B2B and non-hardware segments like subscriptions and webOS platforms differentiate its operations. For instance, LG's webOS smart TV platform is a key component of its platform-based service business, earning recognition for cybersecurity innovation. The integration of AI through its ThinQ platform enables unified device management and personalization, optimizing energy use and enhancing audiovisual experiences.

In 2024, LG Electronics achieved a record KRW 87.73 trillion in annual revenue. This success was primarily driven by the consistent, nine-year growth streak in its home appliances and vehicle components businesses.

The LG Group is making substantial investments, planning KRW 100 trillion in South Korea by 2028. Half of this investment is earmarked for future-oriented sectors including AI, biotech, cleantech, batteries, automotive parts, and advanced displays.

Despite facing headwinds like a slow recovery in global home appliance demand and increased logistics costs in late 2024, LG maintained profitability through portfolio adjustments and operational efficiencies. However, LG Chem and LG Uplus experienced revenue and profit declines in 2024 due to challenging business environments and increased costs.

LG's competitive strengths lie in its brand recognition, technological leadership, and commitment to innovation. The company's OLED TVs consistently win CES Innovation Awards, highlighting its market dominance. LG is also focusing on AI integration, exemplified by its LG AI Home initiative, and sustainability, aiming for net-zero operational emissions by 2030.

LG Electronics, a key subsidiary, reported a record KRW 87.73 trillion in consolidated revenue for 2024. This performance was driven by strong, continuous growth in home appliances and vehicle components over nine years. LG's OLED TVs maintain market leadership in the premium segment, frequently receiving innovation awards.

LG Chem is strategically repositioning towards high-growth sectors like battery materials and eco-friendly solutions, despite a revenue decrease in 2024. LG Uplus saw a 1.8% revenue increase in 2024, though operating profit declined, with plans to address unprofitable subsidiaries.

The company faces significant risks including intensifying global trade friction, geopolitical instability, and persistent supply chain disruptions. Inflationary pressures and currency volatility also pose ongoing challenges across LG's global operations.

LG plans a substantial 100 trillion won investment in South Korea over five years, focusing on AI, biotech, and cleantech. LG Electronics is evolving into a smart life solutions provider, emphasizing B2B segments like vehicle components and HVAC systems.