Since the global economic slump reduced demand for consumer goods, LG Electronics saw their operating profit for 2022 fall year over year.
On Friday, the South Korean electronics manufacturer reported an operational profit of 3.551 trillion won for 2022, down 12.5% from the previous year.
Demand for consumer electronics, which had been strong during the epidemic, has plummeted as a result of the global economic slump, which has boosted prices for South Korean tech titans Samsung and LG last year.
During the fourth quarter, LG saw its operating profit fall by 90.7% year-over-year to 69.3 billion won.
While demand for consumer electronics as a whole has dropped, demand for high-end items has remained stable until at least 2022. At 83.46 trillion won, LG’s yearly income was its biggest ever, up 12.9% from the previous year.
The South Korean electronics manufacturer attributed the increase in earnings to the rising demand for high-end household appliances and vehicle parts. And in 2022, LG said, its automotive components division also turned a profit for the first time.
The company’s TV division saw a decline in both revenue and operational profit in 2022 compared to 2021 as a result of weaker consumer demand. According to the corporation, demand for computers and screens dropped throughout the year after the outbreak.
On the same day, LG Display, a subsidiary of LG Electronics, reported an operational loss of 875.7 billion won for the fourth quarter due to the low demand for display panels.
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