LG Electronics building. (Photo=Yonhap News)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] The operating profit of LG Group, the holding company, fell more than 18% last year as LG Group affiliates performed poorly overall, the report showed.

According to LG's business report on the 26th, LG Corp. achieved sales of 7.4453 trillion won and operating profit of 1.589 trillion won last year. Operating profit fell 18.2% from 1.9413 trillion won a year earlier.

LG is a net holding company that does not have a separate business, which includes dividend income from its subsidiaries LG Electronics, LG Chem, and LG Uplus, profits from the use of LG brand rights, and rental income from the lease of owned buildings. In terms of revenue, dividends are 52%, trademark rights are 35%, and rental is 13%.

Last year, operating profit based on separate financial statements totaled 1.306 trillion won, down 3% from a year earlier. Dividend income fell 5% year-on-year to 538.9 billion won, income from trademark rights fell 2% year-on-year to 357.2 billion won, and rental income fell 1% to 134.5 billion won.

In fact, operating profit of LG's major affiliates fell overall last year. In the case of LG Electronics, sales rose, but operating profit fell slightly from 3.55 trillion won last year to 3.549 trillion won last year.

The LG Chem posted an operating profit of 2.5291 trillion won last year, down more than 400 billion won from 2.9793 trillion won a year earlier, while LG Uplus also saw its operating profit fall to 998 billion won last year from 1.812 trillion won in 2022.

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