LG ELECTRONICS' OPERATING PROFIT LOGS DOUBLE-DIGIT FALL IN 2025

SEOUL, Jan 30 (Bernama-Xinhua) -- South Korea's tech giant LG Electronics logged a double-digit fall in 2025 owing to the negative effect of the US tariff imposition and higher marketing costs, Xinhua reported, quoting the company on Friday.

The company's operating profit tumbled 27.5 per cent to 2.48 trillion won (US$1.7 billion) in 2025 compared to the previous year.

Its revenue gained 1.7 per cent to hit an all-time high of 89.20 trillion won (US$62.0 billion), while the net income more than doubled to 1.22 trillion won (US$847.4 million) in 2025.

The double-digit profit reduction came from the US tariff-related cost pressures, the higher marketing expenditures, and one-off costs primarily associated with voluntary retirement programmes, which offset the record-high revenue.

LG's flagship home appliance business registered an operating profit of 1.28 trillion won (US$889.1 million) with a record revenue of 26.13 trillion won (US$18.2 billion) in 2025.

The company planned to expand its artificial intelligence (AI)-powered appliance lineup and strengthen its presence in emerging markets.

The media entertainment unit, which manufactures TV, recorded an operating loss of 750.9 billion won (US$521.6 million) on revenue of 19.43 trillion won (US$13.5 billion).

The underperformance was affected by delayed demand recovery and intensified competition in the global market.

The vehicle solution division, which produces vehicle components, generated an operating profit of 559 billion won (US$388.3 million) with revenue of 11.14 trillion won (US$7.7 billion).

The eco-solution division, which makes heating, ventilation and air conditioning (HVAC) products, won an operating profit of 647.3 billion won (US$449.6 million) with revenue of 9.32 trillion won (US$6.5 billion).

--BERNAMA-XINHUA