LG Twin Towers
[Asia Economy Reporter Changhwan Lee] As the performance bonuses for major LG Group affiliates are finalized, the companies are experiencing mixed fortunes. Business divisions with strong management performance last year receive performance bonuses up to 500%, while those with poor results receive no bonus and only a small consolation payment.
According to LG Group and related industries on the 18th, LG Electronics plans to pay performance bonuses up to 500% of the base salary on the 28th, based on last year's organizational management performance.
By business division, the Home Appliance & Air Solution (H&A) Business Division's Home Air Conditioner Business Unit will receive the maximum performance bonus of 500%. The Cleaning Business Unit follows with 450%.
The PC Business Unit, Refrigerator Business Unit, and Korea Sales Headquarters are expected to receive 350%. The Laundry Business Unit is set at 300%, and the TV Business Unit at 100%.
LG Electronics also paid a record-high 500% performance bonus last year. This means the company is paying the maximum 500% performance bonus for two consecutive years. LG Electronics recorded its highest-ever sales of approximately 61 trillion KRW last year.
In particular, the H&A Business Division achieved a record-high sales of 20 trillion KRW last year. Operating profit was 1.9962 trillion KRW, approaching 2 trillion KRW, and the operating profit margin (9.3%) was also the highest ever. Thanks to these achievements, the division is receiving the maximum performance bonus again this year following last year.
LG Innotek will also pay a record-high level of performance bonuses this year. LG Innotek plans to pay performance bonuses to employees around the 21st. The bonuses are set between a maximum of 413% and a minimum of 150% of the base salary, depending on the business division.
The PS Business Unit, a semiconductor parts division within the Substrate Materials Business Unit, will receive the highest performance bonus of 413%. The Optical Solutions Business Unit and Electronic Components Business Unit will receive 372%.
LG Innotek's sales last year were 8.3021 trillion KRW, and operating profit was 403.1 billion KRW, marking a record high. This is analyzed to be influenced by increased camera module supply to major client Apple. LG Innotek plans to continue aggressive management, including large-scale investments worth several hundred billion KRW in the Optical Solutions business this year.
On the other hand, some affiliates with poor performance last year have almost no possibility of performance bonuses. LG Display recorded a deficit of about 1.3 trillion KRW last year. Accordingly, it is known that the likelihood of performance bonuses this year is low.
LG Electronics' Mobile Business Unit and Automotive Parts Business Unit, which continue to post losses, will only receive a consolation payment of 1 million KRW. LG Chem, which suffered from various setbacks including ESS (Energy Storage System) fires, is reported to provide only a consolation payment of 500,000 KRW to its Battery and Advanced Materials Business Division.
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