LG Electronics said at a conference call for its first-quarter 2026 earnings on the 29th that, regarding the MS Business Headquarters, "In 2025, sales decreased as competition intensified amid a lack of overall demand growth momentum, including for TVs."
It added, "On the profitability side, we pursued business-unit integration synergies, improved operational efficiency, and built overseas smart production lines, but as cutthroat competition among companies intensified not only in premium but also in mass-market products, the combination of rising expense and falling selling prices led to an operating loss."
It also said, "This year, there are demand-improving factors such as the World Cup, but there are concerns that rising macroeconomic volatility from the prolonged conflict in the Middle East could negatively affect demand recovery," adding, "The strong dollar continues, and cost pressures from higher semiconductor and memory prices are also ongoing."
It further noted, "The MS Headquarters will enhance customer value and drive sales growth based on differentiated product leadership and brand recognition. Our goal is a profit-and-loss turnaround this year," adding, "We will actively leverage the manufacturing ecosystem in low-cost countries to build a cost structure that can compete with Chinese companies, and we will prioritize securing profitability, focusing on improving the expense structure through fixed-cost reductions and enhanced operational efficiency."