Seoul: LG Electronics Inc. reported a continued loss in the fourth quarter of 2025, attributed to weak market demand and significant one-off costs from its restructuring efforts. The company's net loss for the October-December period was 725.9 billion won (US$505.7 million), a slight increase from the 713.7 billion won loss recorded a year earlier.
According to Yonhap News Agency, LG Electronics experienced an operating loss of 109 billion won in the fourth quarter, a stark contrast to the operating profit of 135.4 billion won in the same period in 2024. Despite these losses, sales increased by 4.8 percent year-on-year to 23.85 trillion won. The company cited a delayed recovery in TV product demand and increased marketing costs as key factors impacting performance.
The company highlighted that a voluntary retirement program, aimed at improving workforce efficiency, contributed to expenditures in the hundreds of billions of won. For the entirety of 2025, LG Electronics reported a net profit of 1.22 trillion won, more than double the previous year's figure.
Operating profit for the year was 2.47 trillion won, down 27.5 percent from 3.41 trillion won in 2024, while annual sales reached a record 89.2 trillion won, a 1.7 percent increase. The home appliance business led the sales growth despite challenges such as tariff burdens. The home appliance solution division recorded an operating profit of 1.27 trillion won by enhancing its production cost structure.
Conversely, the media entertainment solution division faced an operating loss of 750.9 billion won in 2025, due to increasing market competition. The vehicle solution division achieved an operating profit of 559 billion won, with plans to lead in the software- and AI-driven vehicle industry.
Looking forward to 2026, LG Electronics intends to expand its AI home appliance portfolio and develop future growth engines, including home robotic products. The company also aims to strengthen sales of OLED TVs and other innovative products, such as the LG StanbyME portable TV.