LG (003550.KS) Q1 2026: Equity Earnings Halve, Profit Slumps 35%

Record net asset value masks a sharp earnings retreat as LG Electronics and LG Chem drag equity-method income to a multi-quarter low.

Source: Q1 2026 Quarterly Report — Filed March 31, 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions

LG Corp., the holding company at the apex of the LG conglomerate, reported consolidated operating profit of ₩413.8 billion in Q1 2026, a 35.1% year-on-year decline driven almost entirely by a collapse in equity-method earnings. The consolidated top line — which incorporates both subsidiary revenues and equity-method income in a single line item — fell 7.0% to ₩1,800.6 billion as equity-method income contracted 47.8%, from ₩481.8 billion to ₩251.5 billion, reflecting simultaneous headwinds at LG Electronics, LG Chem, and LG Energy Solution. Against this earnings retreat, however, the market's estimate of LG Corp.'s net asset value reached an all-time high of approximately ₩37.46 trillion, per sell-side consensus, and the NAV discount to market capitalization tightened from approximately 45% at end-2025 to around 40%, with LG CNS's February 2025 IPO and LG Electronics' share price appreciation as the primary re-rating catalysts. The resulting tension — deteriorating earnings flow versus expanding asset stock — defines the investment narrative for LG Corp. this quarter.