LG (003550)

LG is a holding company whose main business areas are managing stakes in subsidiaries, revenue from LG brand trademark usage, and rental income. At the group level, the business focus is shifting from its existing home appliance-centric model to building industrial infrastructure for the artificial intelligence (AI) era. Key business areas include LG Electronics (home appliances, automotive components, B2B solutions, robots), LG Energy Solution (batteries, ESS), LG Chem (advanced materials, battery materials), and LG Display (OLED). Through LG AI Research, the company is developing the hyperscale AI model 'EXAONE'. In particular, it is fostering B2B businesses such as AI data center cooling solutions, energy storage systems, next-generation displays, and industrial AI and robots as future growth engines. B2B businesses account for more than two-thirds of the group's total revenue, and LG Display restructured its business around OLED panels, with OLED revenue reaching 61% in 2025. LG's greatest strength is its ability to create integrated synergies through organic connections among its affiliates in areas such as electronics, batteries, materials, displays, and AI research. Furthermore, it possesses core technological capabilities including AI data center cooling technology, ESS-based power storage technology, advanced battery and material technologies, and high-performance OLEDs. LG Electronics demonstrated strong brand competitiveness by recording the highest brand value growth rate in 'Best Korea Brands 2025'. Examining LG's annual performance, operating income decreased by 18.25% from KRW 1,941.4 billion in 2022 to KRW 1,589.0 billion in 2023, then significantly declined by 39.16% to KRW 966.8 billion in 2024, followed by a slight decrease of 5.65% to KRW 912.2 billion in 2025, showing a continuous downward trend. Net income decreased from KRW 2,115.8 billion in 2022 to KRW 790.5 billion in 2024, but rebounded in 2025 to KRW 1,000.1 billion, an increase of 26.51% year-over-year. Quarterly revenue in 2025 showed significant volatility, with KRW 1,936.1 billion in Q1, KRW 198.4 billion in Q3, and KRW 5,256.4 billion in Q4. Notably, Q2 recorded an exceptional performance with revenue of KRW -138.4 billion and operating income of KRW -361.2 billion. Operating income in Q4 2025 was KRW 493.2 billion, accounting for a significant portion of the annual operating income and indicating a recovery. LG maintains very robust financial health. The debt-to-equity ratio consistently remained at a low level in the early 10% range, decreasing from 12.96% in 2022 to 12.03% in 2025. The current ratio stably maintained above 200%, increasing from 201.37% in 2022 to 243.72% in 2025, demonstrating excellent short-term liquidity. Return on equity (ROE) declined from 8.06% in 2022 to 2.81% in 2024 but slightly improved to 3.30% in 2025. LG is accelerating its transformation into an industrial infrastructure group for the AI era, securing future growth engines. It is expected to create new market opportunities through the expansion of B2B businesses such as AI data centers, power storage, advanced batteries, next-generation displays, and robots. The company is anticipated to continue its strategy of maximizing synergies among affiliates and integrating AI technology to strengthen the group's overall competitiveness.