LG H&H shares are in a downward trend at the start of the trading session on the 1st, likely due to the earnings shock reported for the second quarter the previous day.

Gwanghwamun headquarters view. /Courtesy of LG H&H

As of 9:06 a.m. on the day, LG H&H shares are trading at 295,000 won, down 6.65% (21,000 won) from the previous trading day in the KOSPI market.

Earlier, LG H&H disclosed that its consolidated operating profit for the second quarter of this year was tentatively reported at 54.8 billion won, a decrease of 65.4% compared to the same period last year.

Sales decreased by 8.8% to 1.6049 trillion won, while net profit fell 64% to 38.6 billion won.

The securities sector has also seen a series of negative outlooks. Samsung Securities and Hyundai Motor Securities have each lowered their target prices by 7% and 17%, respectively.

Lee Ga-young, an analyst at Samsung Securities, said, "Due to the cosmetics division's transition to a loss, we have begun intensive restructuring, and as a result, profitability is expected to deteriorate further in the third quarter."

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