South Korea's LG Corp Reports 21.8% Drop in Q3 Operating Profit
LG Corporation's Q3 operating profit fell 21.8% year-on-year, primarily due to declining equity method income from its chemical subsidiaries.
South Korea's LG Corporation reported its consolidated financial results for the third quarter of 2026 on November 12. The holding company posted an operating profit of 327.7 billion won, marking a 21.8% decrease compared to the same period last year. Despite a 2.2% increase in revenue to 2.404 trillion won, the decline in profitability was attributed to weak performance in the chemical business segment.
LG Group explained that the sharp reduction in equity method income from its chemical affiliates was the primary driver behind the drop in operating profit. Equity method gains fell to 107.7 billion won in the quarter, a 51.8% plunge from 223.3 billion won in the previous year. Net profit attributable to controlling interests also decreased by 34.4% to 206.8 billion won.
Among consolidated subsidiaries, IT services firm LG CNS showed resilience, with cumulative revenue for the first three quarters reaching 4.5 trillion won, up 7% year-on-year, driven by cloud service expansion. Its cumulative operating profit rose 6% to 360.3 billion won, though this growth was insufficient to offset the broader drag from the chemical division.