ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Consumer Durables

LG Electronics, Inc.

Company Background

LG Electronics is a core company of South Korean conglomerate LG group, alongside LG Chem. Founded in 1958, LG Electronics has led the country's electronics industry since its early days as the first producer of radios, TVs and other appliances. Now, it is the second-largest electronics maker after Samsung Electronics.

Although LG Electronics lags far behind Samsung in semiconductors and smartphones, the two companies are in close competition in areas such as TVs, washing machines and refrigerators, at home and abroad. Headhunting and patent infringement suits are also common between the two companies. LG Electronics is known for its more laid-back work atmosphere compared to Samsung, which requires its employees to deliver results in a short time.

Its affiliated companies, such as LG Display and LG Innotek, produce liquid crystal display panels and electronic parts. Amid increased competition with its Chinese rivals in consumer products, LG Electronics aims to boost sales of electronic parts outside the group. It has, for example, set up a division specializing in research and development and supply to automakers.

Koo Bon-joon, vice chairman of LG Electronics, is the brother of LG Corp. chairman Koo Bon-moo, and the grandson of Koo In-hwoi, the company founder. He cannot ignore his brother when making important management decisions.

Business Summary

LG Electronics, Inc. engages in the manufacturing of display devices, home appliances, multimedia goods, electronic parts and develops software. It operates through the following business areas: Home Entertainment, Mobile Communications, Home Appliance, Air-Conditioning, Energy Solution and Independent business area. The Home Entertainment business area provides products such as televisions, monitors, personal computers for IT, Car Infotainment and produces Chemical and Electronic Materials. The Mobile Communications business area offers products such as handsets and tablets. The Home Appliance business area provides products such as refrigerators, washing machines, cooking and cleaning and health care appliances. The Air Conditioning and Energy Solution business area manufactures products such as Light Emitting Diode (LED) lightings, residential and system air conditioners. The Independent business area provides products such as compressors, storage devices, PC, telematics and solar cells. The company was founded by In-Hwoi Koo on Oct 1, 1958 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue62,306.17B53,427.38M
Gross Profit15,928.24B13,658.43M
Operating income2,436.13B2,088.98M
Income before tax1,580.73B1,355.47M
Net income31,285M26.82M
EBITDA4,914.76B4,214.39M
Diluted EPS173.740.14
Dividends Per Share7500.64
Total Assets44,859.87B38,791.02M
Total liabilities28,434.73B24,587.95M
Total equity14,330.08B12,391.44M
Operating cash flow3,689.16B3,163.44M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 56,509.00B 55,367.03B 61,396.28B 61,341.66B 62,306.17B
Gross Profit 13,560.33B 13,266.89B 14,219.42B 14,655.69B 15,928.24B
Operating income 1,160.45B 1,315.08B 2,454.78B 2,683.60B 2,436.13B
Income before tax 593,125M 721,717M 2,558.11B 2,008.57B 1,580.73B
Net income 128,228M 76,879M 1,725.77B 1,240.13B 31,285M
EBITDA 3,093.17B 3,059.44B 4,222.35B 4,685.03B 4,914.76B
Diluted EPS 690.82 426.94 9,584 6,887.13 173.74
Dividends Per Share 400 400 400 750 750
Total Assets 36,313.89B 37,855.26B 41,220.95B 44,328.44B 44,859.87B
Total liabilities 23,330.40B 24,498.52B 26,547.27B 28,021.53B 28,434.73B
Total equity 11,626.57B 11,987.09B 13,224.26B 14,253.26B 14,330.08B
Operating cash flow 2,618.77B 3,157.99B 2,166.27B 4,541.56B 3,689.16B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 49,928.28M 47,722.39M 54,308.47M 55,738.89M 53,427.38M
Gross Profit 11,981.17M 11,435.10M 12,577.88M 13,317.08M 13,658.43M
Operating income 1,025.31M 1,133.50M 2,171.39M 2,438.48M 2,088.98M
Income before tax 524.05M 622.06M 2,262.79M 1,825.11M 1,355.47M
Net income 113.29M 66.26M 1,526.54M 1,126.86M 26.82M
EBITDA 2,732.96M 2,637.02M 3,734.91M 4,257.11M 4,214.39M
Diluted EPS 0.61 0.36 8.47 6.25 0.14
Dividends Per Share 0.35 0.34 0.35 0.68 0.64
Total Assets 30,970.01M 31,342.33M 38,504.46M 39,727.94M 38,791.02M
Total liabilities 19,897.15M 20,283.59M 24,797.78M 25,113.40M 24,587.95M
Total equity 9,915.62M 9,924.73M 12,352.77M 12,774.03M 12,391.44M
Operating cash flow 2,313.80M 2,721.96M 1,916.18M 4,126.75M 3,163.44M

Valuation Measures

Dec 2019
PER414.98
ROA0.07%
ROE0.21%
Operating margin3.90%
Profit margin0.05%

Key executives

  • Chief Executive Officer: Brian Kwon
  • Chief Technology Officer: Il-Pyung Park
  • Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
  • Senior Vice President: Taeg-il Cho
  • Vice President: Ho-Kun Hwang

Shareholders

  • LG Corp. (33.6%)
  • National Pension Service of Korea (11.4%)
  • The Vanguard Group, Inc. (1.9%)
  • Dimensional Fund Advisors LP (1.8%)
  • BlackRock Fund Advisors (1.5%)
  • Norges Bank Investment Management (1.1%)
  • APG Asset Management NV (0.7%)
  • Mirae Asset Global Investments Co., Ltd. (0.5%)
  • Acadian Asset Management LLC (0.5%)
  • LG Electronics, Inc. (0.4%)

Contact Details

  • Website:http://www.lge.com
  • Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

Related Companies

  • EIC Properties Pte Ltd.
  • LG Electronics Colombia Lda.
  • Lg Electronics India Ltd.
  • LG Fuel Cell Systems Korea, Inc.
  • LG Electronics Peru SA
  • Hua Fei Color Display Systems Co., Ltd.
  • LG Holdings (HK) Ltd.
  • LG Optical (Mfg) Ltd.
  • Hi Plaza, Inc.
  • Ace R&A Co., Ltd.
  • Nanjing LG International Vmi Co. Ltd.
  • LG Electronics Vietnam Hai Phong Co. Ltd.
  • LG Electronics (Hangzhou) Co. Ltd.
  • LG Electronics (China) R&D Center Co. Ltd.
  • LG Electronics (Shanghai) R&D Center Co. Ltd.
  • Shanghai LG Electronics Co. Ltd.
  • LG Electronics Gulf FZE
  • LG Electronics (Qinhuangdao) Co. Ltd.
  • Qingdao LG Inspur Digital Communication Co. Ltd.
  • ZKW Group GmbH
  • Hewlett-Packard Co. /Web Operating System Business/
  • LG Electronics, Inc. Employee Stock Ownership Association
  • LG Electronics Rus OOO
  • Daewoo Entec Co. Ltd.
  • LG Electronics HK Ltd.
  • New Allied Electronics Industries (Pvt) Ltd.
  • PT LG Electronics Indonesia
  • LS Mtron Co. Ltd. /Air Conditioning Business/
  • LG Electronics Inc. Chile Ltda.
  • LG Electronics Taiwan Taipei Co. Ltd.

Competitors

  • Lite-On Technology Corp.
  • VOXX International Corporation Class A
  • Archos SA
  • Dayou Automotive Seat Technology Co., Ltd
  • TCL Electronics Holdings Limited
  • OSRAM Licht AG
  • Inseego Corp.
  • NETGEAR, Inc.
  • Fitbit, Inc. Class A
  • Korea Electric Terminal Co., Ltd.
  • AFCON Holdings Ltd
  • WiSoL Co., Ltd.
  • Electrolux AB Class B
  • KOREA SHIPBUILDING & OFFSHORE ENGINEERING CO.,LTD.
  • Beijer Ref AB Class B
  • Concepcion Industrial Corp.
  • Vuzix Corporation
  • Whirlpool Corporation
  • G-treeBNT Co., Ltd.
  • Display Tech Co., Ltd.
  • Maxeon Solar Technologies, Ltd.
  • Tadiran Holdings Ltd.
  • Canadian Solar Inc.
  • Hyundai Energy Solutions Co., Ltd.
  • Kyung In Electronics Co., Ltd.
  • SK Networks Co., Ltd.
  • Bubang Co., Ltd.
  • Capstone Turbine Corporation
  • COWAY Co., Ltd.
  • CUCKOO HOMESYS CO.,LTD
Last Updated on 21 Oct, 2020

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more