Lotte Department Store, Industry's First 'LG Home Appliance Subscription Service'

Implemented in 7 Stores Nationwide... L.Point Accumulation Benefits
Customer Response Monitored, Full Rollout Considered for First Half of Next Year

Lotte Department Store announced on the 2nd that it will be the first in the department store industry to launch the 'LG Electronics Home Appliance Subscription Service.'

The LG Electronics home appliance subscription service allows customers to use home appliances by paying a fixed monthly subscription fee. Subscriptions can be set for a minimum of 3 years and a maximum of 6 years. During the subscription period, free after-sales service (A/S) is provided, and air conditioners receive free care service once a year, while washing machines, dryers, and dishwashers receive free care service every six months. Unlike typical home appliance rental services, a key advantage is that if the subscription service is used for more than 4 years, customers can own the products they used at the end of the contract without having to return them.

A customer consulting with a store employee about the subscription service at the LG Electronics store in Lotte Department Store.
[Photo by Lotte Department Store]

Lotte Department Store will offer this subscription service through LG Electronics stores at seven locations: the main store, Jamsil, Busan main store, Incheon, Suwon, Daegu, and Daejeon. Additionally, customers using the service will receive L.POINT rewards that can be used like cash at affiliated partners including the department store, mart, hotels, and coffee shops, depending on the amount spent. Lotte Department Store plans to monitor customer responses to the service until the end of the year and consider expanding the service to all stores in the first half of next year.

The home appliance subscription service is increasingly in demand, especially among young generations such as single-person households and newlyweds who seek rational consumption. The service highlights advantages such as low initial purchase costs and no expenses for after-sales management. LG Electronics’ subscription business sales in the first half of this year reached 773.3 billion KRW, a 77.9% increase compared to the same period last year. LG Electronics estimates that subscription business sales will exceed 1.8 trillion KRW this year.

Lee Dong-hyun, head of the Lifestyle Division at Lotte Department Store, said, "Subscription has already become the most familiar and common form of consumption in daily life," adding, "With the wedding and moving season in September, this is an opportunity to purchase reliable LG home appliances at an affordable price."