LG Electronics reported record-breaking sales for its home appliance subscription business on a half-year (January–June) basis. By expanding its business scope to corporate clients and overseas markets, the company has gained momentum in growth, signaling a green light for achieving an annual revenue of 3 trillion won this year.
According to LG Electronics' semi-annual report released on the 18th, home appliance subscription sales in the first half of this year reached approximately 1.1468 trillion won (excluding care service revenue). This represents a record high for a half-year period, marking an increase of over 8% compared to the same period last year. Compared to 368.6 billion won in 2022, the business has grown more than threefold within five years.
Analysts attribute this growth to strategies that reduced the burden of upfront product purchases and strengthened management and after-sales service (A/S), which have driven subscription demand. In fact, unlike one-time lump-sum purchases, LG Electronics lowered initial cost burdens by adopting a monthly subscription fee model. The company also provides regular on-site maintenance visits during the subscription period and offers up to six years of free A/S. Based on this approach, home appliance subscription sales excluding care service revenue have steadily increased on a half-year basis: △434.9 billion won in 2023, △773.8 billion won in 2024, and △1.598 trillion won in 2025. In a global home appliance market where growth has stagnated, the subscription business is being evaluated as a new engine for growth.
Notably, this year has seen an expansion of service targets beyond individual consumers into the B2B (business-to-business) market. A representative example is LG Electronics' partnership with Hyundai E&C to introduce home appliance subscription services in the Apgujeong redevelopment complex in Gangnam-gu, Seoul. Residents can choose from 5 to 7 types of appliances depending on their zone, including refrigerators, washing machines, dryers, styler units, and dishwashers. In some units, such as those in "The Penthouse," ultra-premium product lines like 'SKS' and 'LG Signature' are also available via subscription. Previously, LG Electronics agreed to supply air conditioners, washing machines, refrigerators, and other appliances on a subscription basis to approximately 5,400 households in new public housing projects nationwide managed by the Korea Land and Housing Corporation (LH).
It is also noteworthy that the company continues to expand its subscription offerings through an ultra-premium lineup. Subscribing to SKS, LG Electronics' premium built-in home appliance brand, provides customers with customized consulting from experts who consider home structure and interior design. Premium built-in appliances such as column-type refrigerators, freezers, wine cellars, island-style refrigerators, microwave ovens, and steam ovens are also available for subscription.
LG Electronics is also accelerating its expansion into overseas markets. In Thailand, the company surpassed 30,000 subscribers within approximately 18 months of launching its subscription business and is selling over 100 products via subscription, including large appliances like washing machines and refrigerators. The goal is to expand offline subscription channels in Thailand to around 100 locations by the end of this year. In Malaysia, LG Electronics operates 130 dedicated subscription brand shops. As of June, cumulative subscription sales exceeded 300,000 units. LG Electronics plans to further expand its home appliance subscription business into the Middle East region.
Moreover, customer data acquired through subscription services is being leveraged for product development that reflects local climates, living cultures, and consumption characteristics. For instance, consumer requirements such as ease of washing machine maintenance or air conditioner upkeep are incorporated into product design. Kim Geon-il, President of LG Electronics Taiwan, emphasized at a press conference held in Taiwan in May: "We view the home appliance subscription business as a major momentum because it allows us to reflect feedback obtained through direct communication with customers in product development."
If this growth trend continues, achieving an annual revenue of 3 trillion won is considered feasible. An industry insider stated, "The home appliance subscription business is growing due to the combination of consumers' ability to receive continuous management services while using products and their demand to subscribe to various appliances. As product lines and services become more diverse, the market will expand even further."
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