B2B housing deals, Southeast Asia expansion open new growth channels

LG Electronics expanded appliance subscriptions to major home appliances in 2022 and has since broadened the business into premium products, business-to-business housing projects and overseas markets. (LG Electronics)
LG Electronics expanded appliance subscriptions to major home appliances in 2022 and has since broadened the business into premium products, business-to-business housing projects and overseas markets. (LG Electronics)

LG Electronics’ appliance subscription business reached a record first-half high this year, with revenue more than tripling from its 2022 level as the company expands the model into large housing projects and overseas markets.

Revenue from appliance subscriptions, excluding care services, came to 1.15 trillion won ($820 million) in the January-June period, according to LG Electronics’ half-year report released Friday. That was up 8.2 percent from 1.06 trillion won a year earlier and 3.1 times the 368.6 billion won recorded in the first half of 2022.

The 2022 figure is part of LG’s current subscription-business revenue series, while the company formally introduced its present appliance subscription model in July 2023. The model combines products with multiyear care and after-sales services, building on earlier rental business.

First-half growth slowed from the double-digit gains of the previous two years, but revenue still rose to its highest level for any six-month period.

LG is now widening the business beyond individual consumers. In July, the company agreed with Hyundai Engineering & Construction to offer appliance subscriptions to about 7,000 homes planned for three apartment redevelopment districts in Apgujeong, southern Seoul.

Residents will be able to choose five to seven types of appliances depending on the project, including refrigerators, washing machines and dryers. Some premium units will also offer products from LG’s SKS and LG Signature lineups.

The company has signed a roughly 15 billion won agreement with Korea Land & Housing Corp., the state-run housing developer, to supply air conditioners, refrigerators and washing machines to 5,400 public rental homes across 28 complexes. Maintenance and free after-sales service are set to be provided for six years after completion.

LG Electronics employees mark 10,000 cumulative subscription accounts in Thailand at a Chiang Mai store in June 2025. The company says the total has since surpassed 30,000 accounts. (LG Electronics)
LG Electronics employees mark 10,000 cumulative subscription accounts in Thailand at a Chiang Mai store in June 2025. The company says the total has since surpassed 30,000 accounts. (LG Electronics)

LG is also expanding subscriptions overseas. In Malaysia, where it launched its first overseas rental subscription operation in 2019, cumulative subscription product sales have exceeded 300,000 units. In Thailand, subscription accounts surpassed 30,000 about 18 months after launch, with around 100 products now offered under the program.

LG’s broader subscription revenue, which includes both products and services, totaled about 1.3 trillion won in the first half based on its quarterly earnings disclosures. That measure is wider than the 1.15 trillion won figure in the half-year report, which excludes care-service revenue.

LG recorded about 2.48 trillion won in total subscription revenue last year. That puts the 3 trillion won annual mark within reach this year, though reaching it would require stronger second-half sales. The company has said it aims to expand subscription revenue to more than 6 trillion won by 2030.


mjh@heraldcorp.com