LG Electronics Q2 Operating Profit at 639.4 Billion Won, Down 47% Year-on-Year

Increased Cost Burden Due to U.S. Tariff Policy

LG Electronics' operating profit for the second quarter of this year was about half the level of the same period last year.

On July 25, LG Electronics announced that its consolidated operating profit for the second quarter of this year was 639.4 billion won, a decrease of 46.6% compared to the same period last year. Revenue was 20.7352 trillion won, down 4.4%. The operating profit margin was 3.1%.

Employees are heading to work at the LG Group headquarters in Yeouido, Seoul. Photo by Kang Jinhyung

LG Electronics explained that, as the recovery of consumer sentiment in major markets was delayed, the changes in U.S. trade policy that became pronounced in the second quarter led to increased tariff costs and intensified competition in the market.

By business division, the Home Appliance (HS Business Division), Vehicle Components (VS Business Division), and Heating, Ventilation, and Air Conditioning (ES Business Division) businesses all saw increases in both revenue and operating profit compared to the previous year. In the case of the Media Entertainment (MS Business Division), a decline in TV sales and an increase in marketing expenses resulted in a shift to an operating loss.