After Record-Breaking Performance, LG Electronics' Vehicle Component Division to Receive 539% Bonus

Management Performance Bonus Rates Finalized
Home Appliance Division to Receive 200-320% of Base Salary

LG Electronics will pay a management performance bonus equivalent to 539% of base salary to the VS Business Division, which is responsible for the vehicle component solutions business and has driven the company’s record-breaking performance.

The LG Electronics building in Yeouido, Seoul. Photo by Yonhap News

On January 30, LG Electronics announced that it had held briefings for each division and confirmed the payout rate and schedule for the 2025 management performance bonuses.

Members of the VS Business Division, which achieved all-time highs in both sales and operating profit, will receive the company’s highest payout rate of 539% of their base salary. The VS Business Division posted sales of 11.1357 trillion won and an operating profit of 559 billion won last year, thanks to the smooth conversion of its order backlog into revenue.

The ES Business Division, which handles heating, ventilation, and air conditioning, will receive between 215% and 445% of base salary, while the HS Business Division, responsible for home appliances, will receive between 200% and 320% of base salary.

The MS Business Division, which oversees media and entertainment, has been set to receive a payout rate of 47% of base salary. The MS Business Division posted an operating loss of 750.9 billion won, turning to a deficit from the previous year due to delayed demand recovery and intensified market competition.

LG Electronics operates a management performance bonus system that comprehensively reflects business performance, contribution to brand value, and other factors in line with its performance-based principles.

This year’s management performance bonus is scheduled to be paid on February 10.

Last year, LG Electronics recorded an operating profit of 2.4784 trillion won and sales of 89.2009 trillion won. While the company set a new record for annual sales for the second consecutive year, operating profit declined by more than 27%.