Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Can robotics pull LG Electronics out of slump?
An attendee passes by a display of LG evo W6 Wallpaper televisions at the LG Electronics booth during CES 2026 in Las Vegas, Wednesday (local time). Reuters-Yonhap
By Nam Hyun-woo
Company estimates $75.2 mil. operating loss in Q4 2025
LG Electronics posted a quarterly operating loss for the first time in nearly 10 years, as its TV, home appliance and other existing flagship businesses faced limits in their growth.
The company said the downturn is temporary as it seeks to regain momentum through new businesses. Multiple industry officials said LG’s future hinges on robotics, noting that it is more critical than ever for the company to clearly define not only its technology road map but also its broader strategy for expanding its robot business.
The company on Friday released its earnings guidance for the fourth quarter of 2025, projecting sales of 23.85 trillion won ($16.35 billion) and an operating loss of 109.4 billion won.
If the numbers are confirmed, LG Electronics will post a quarterly operating loss for the first time since the fourth quarter of 2016.
Revenue increased 4.8 percent from a year earlier, but the company swung to an operating loss from an operating profit of 135.4 billion won in the fourth quarter of 2024. The estimated loss is far greater than brokerages’ consensus forecast of 8.4 billion won, showing that the company’s profitability has been seriously damaged.
The estimated operating loss was largely attributed to a delayed recovery in demand for display products, the impact of U.S. tariffs and rising marketing expenses amid intensifying competition in the TV and home appliance markets. This was coupled with an assumed 300 billion won of one-off costs related to voluntary retirement programs launched by the company in the second half of last year.
A promotion image of LG Electronics' CLOiD home android robot / Courtesy of LG Electronics
LG Electronics appears to be aware of the urgent need to improve its business portfolio, as its traditional TV and home appliance businesses have already entered a mature phase.
While releasing its earnings guidance, the company said that “new growth business areas — including automotive components, heating, ventilation and air conditioning, TV operating systems and home appliance subscription services — accounted for nearly half of its total revenue in 2025.”
However, these businesses are unlikely to evolve into flagship profit drivers capable of anchoring LG’s earnings as its smartphone, TV and home appliance businesses once did. Industry officials said this is why the company’s future will likely hinge on robotics.
During CES 2026, the company unveiled its robotics strategy, highlighted by the artificial intelligence home robot CLOiD and robotic actuator brand AXIUM. Of them, CLOiD succeeded in gaining attention from visitors and media for its ability to fold laundry, organize dishes and complete other home chores.
“While CLOiD drew attention at the event, it is unlikely to become a meaningful revenue driver,” an industry official said. “With robots offering similar functions priced at over 100 million won per unit, how many buyers would be willing to pay that much just to have a towel-folding robot?”
“What really matters for LG is industrial robots and core technologies such as actuators that go into robots,” the official said. “Given that LG affiliates hold key technologies in batteries, cameras, sensors and others critical to the robotics supply chain, it is natural for LG to seek growth momentum through robotics. The bigger question is how LG will unfold that strategy.”
LG Electronics' robotic actuator brand AXIUM / Captured from LG Electronics' website
The market is placing growing importance on actuators, which convert electrical signals into kinetic energy to move robots. According to a report by Growth Research, a single humanoid robot typically uses 40 to 50 actuators, which together account for about 60 to 70 percent of total production costs. The report estimated that the global demand for industrial humanoid robots will reach 6.86 million units by 2034, which will jack up the demand for actuators to 300 million.
LG Electronics CEO Lyu Jae-cheol said during a press conference at CES 2026 on Wednesday (local time) that the company “plans to expand its robot business beyond home use models to include commercial and industrial robots.”
LG Electronics plans to increase this year’s investment into new growth areas, including robotics, by more than 40 percent compared to last year.