LG Electronics is pivoting toward emerging markets in the “Global South” as it seeks to counter slowing growth in North America and Europe, CEO Cho Joo-wan told shareholders at a meeting in Seoul.
The South Korean electronics manufacturer is targeting high-potential regions across Asia, Latin America, the Middle East, and Africa, with India taking center stage in its expansion plans. LG sees significant opportunity in India’s expected GDP growth, which is anticipated to exceed $3,000 per capita next year, potentially doubling the market for major appliances by 2028.
“We will add the axis of ‘region’ to accelerate growth in promising areas,” Cho said during the March 25 meeting at LG Twin Towers.
LG’s Indian subsidiary has received preliminary approval for an IPO and aims to complete the listing process within the first half of this year, positioning itself as a “national company” within the Indian market.
The company is also expanding its appliance subscription services, initially launched in Taiwan and Thailand, to India, Singapore, and Hong Kong this year.
LG reported 16.34 trillion won ($12.1 billion) in sales from its five major subsidiaries in the Global South last year, representing 17% growth over two years—triple the company’s overall growth rate of 5.1%.
Amid uncertainty over U.S. tariffs, LG is preparing contingency plans, including possible expansion of U.S. production facilities in Tennessee for refrigerators and ovens.
