LG Electronics announced an operating loss in the fourth quarter, shifting from a profit the previous year. The loss amounted to 109.4 billion won, a significant decline from the 135.4 billion won profit reported earlier. Despite Yonhap Infomax’s projection of a profit, the company faced challenges due to a contraction in demand caused by US tariffs.
Revenue for the October-December period rose by 4.8% year-on-year to 23.85 trillion won. However, specific data regarding net income was not disclosed. Looking at the full year of 2025, LG Electronics estimated a 27.5% decrease in operating profit compared to the previous year, amounting to 2.47 trillion won. Annual revenue, on the other hand, saw a 1.7% increase, reaching a new high of 89.2 trillion won.
LG Electronics attributed the performance decline to a delay in demand recovery for display products and increased marketing costs amidst heightened market competition. The company implemented a voluntary retirement program in the second half of the year to alleviate fixed costs. Despite the ongoing U.S. tariff challenges, LG Electronics expressed intentions to enhance operational efficiency to counter these obstacles.
While detailed divisional performance figures were not disclosed, LG Electronics hinted at a loss in its display businesses due to weak demand in 2025. On a positive note, the home appliance segment achieved record sales, particularly in the premium category. The company outlined plans to focus on investment in the built-in segment and business-to-business areas for future growth. Additionally, LG Electronics anticipated setting new sales and operating profit records in its vehicle solution business.
