Second-Highest Production Since the Pandemic
Strengthening Overseas Push for 'Premium' Product Lines
Increased Sales of Refrigerators, Washing Machines, and Air Conditioners
Focusing on Global South Regions Including India
LG Electronics' refrigerator production surpassed 10 million units last year, marking the second-highest performance in its history. Despite the overall downturn in the global home appliance market, LG Electronics is achieving results by emphasizing its 'premium strategy.'
According to LG Electronics' 2024 business report released on the 1st, last year's refrigerator production reached approximately 11.33 million units, a 17% increase compared to the previous year. This is the highest volume since the pandemic-driven rebound consumption in 2021, when production first exceeded 10 million units (11.52 million units).
The significant increase in production last year is attributed to the successful penetration of premium product lines in overseas markets. LG Electronics has actively targeted premium demand by introducing products such as the 'Insta View Refrigerator' featuring transparent organic light-emitting diode (OLED) technology and AI-based food management functions, as well as the direct water supply refrigerator 'STEM.' The premium home appliance demand, centered on kitchens, rapidly recovered in advanced markets like the U.S. and Europe as home living needs became more sophisticated after the pandemic.
Notably, LG Electronics showed strong performance in the North American market. In Consumer Reports' evaluation of the 'Best Top Freezer Refrigerators of 2025,' LG's 30-inch and 33-inch models ranked first and second, respectively. According to market research firm Trackline, Korean companies including Samsung Electronics and LG Electronics held a 47.7% market share in the U.S. refrigerator market based on sales. Additionally, LG Electronics' recent diversification of production bases in strategic markets such as North America, Europe, and India helped reduce logistics costs and stabilize supply chains, positively impacting production expansion.
Not only refrigerators but also LG's core home appliances, washing machines and air conditioners, saw increases in both production volume and sales last year. Washing machine production reached 16.69 million units, a 9% increase from the previous year. Air conditioner production also rose by 17% to 14.11 million units. In terms of sales, after a decline the year before last, the combined revenue from refrigerators, washing machines, and air conditioners rose about 11% year-on-year to 25.1858 trillion KRW last year.
Recently, LG Electronics has been focusing on selling premium product lines in the 'Global South' regions, classified as emerging markets including Asia, Latin America, and the Middle East & Africa. On the 25th, LG Electronics CEO Cho Joo-wan stated at the shareholders' meeting, "Starting this year, we will add a regional axis to our existing growth strategy to accelerate growth in promising regions with high growth potential." Among these, India has been identified as a key region for premium home appliance penetration.
The securities industry also expects LG Electronics' first-quarter performance this year to exceed market expectations. KB Securities analyst Kim Dong-won estimated on the 26th of last month that LG Electronics' first-quarter sales and operating profit would reach 22.4 trillion KRW and 1.4 trillion KRW, respectively, representing increases of 5% and 3% year-on-year. Kim analyzed, "Premium home appliance sales are rapidly increasing in emerging Asian markets such as India, Indonesia, and Malaysia."
This year, LG Electronics is focusing on the overseas built-in home appliance market. The 'Fit & Max' product launched in February is also part of the built-in product lineup. A company official stated, "The recent increase in production is mainly due to securing product competitiveness in the global premium market and changes in business models such as subscriptions and direct-to-consumer (D2C) sales." They added, "It is significant that growth was achieved despite delays in the recovery of overseas home appliance demand."
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