LG Electronics recorded over 2 trillion won in sales in India in the first half of the year, achieving the highest sales for a half-year period. LG Electronics is ramping up its strategy to target the Global South region, which refers to developing countries outside the West.
According to the semiannual report released by LG Electronics on the 14th, LG Electronics' Indian subsidiary recorded sales of 2.2829 trillion won in the first half of the year (Q1 to Q2). During this period, the net profit also reached 209.7 billion won, surpassing 200 billion won for the first time on a half-year basis. Both sales and net profit are the highest on a half-year basis.
Having entered India 28 years ago, LG Electronics is strengthening its efforts in the Indian market. LG Electronics has established a 'local complete business structure' encompassing sales, production, and research and development. According to the global market research firm Redseer Report, the market shares of LG Electronics' major home appliances in India during the first half of last year were 25.8% for TVs, 33.5% for washing machines, 28.7% for refrigerators, and 19.4% for air conditioners.
LG Electronics is also making its mark in other Global South regions outside India. This year, LG Electronics recorded consolidated sales of 10.9525 trillion won in Asia and Africa in the first half of the year, showing a growth of approximately 3.3% compared to the same period last year.
LG Electronics has also begun constructing new production bases. The company broke ground on an appliance factory in Sri City, Andhra Pradesh, India, in June. This factory will be the third in India, following the existing plants in Noida and Pune, and is expected to begin initial production of air conditioners by the end of next year, with production lines for washing machines, refrigerators, and air conditioner compressors sequentially operational by 2029.
Meanwhile, the average salary of LG Electronics employees for the first half of the year was tallied at 59 million won, a decrease of 3.7% compared to the same period last year. CEO Jo Ju-wan received a total compensation of 1.574 trillion won, including 794 million won in salary and 780 million won in bonuses for the first half of the year. This amount is a decrease of 28.8% compared to the same period last year.
During the same period, among the executives, Ryu Jae-cheol, head of the HS division at LG Electronics, who leads the home appliance business, received the highest compensation of 1.86 billion won (including a salary of 716 million won and a bonus of 1.144 billion won). Among retired executives, former President Park Il-pyeong received total payments of 2.711 billion won, including a severance payment of 2.08 billion won.