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LG Electronics initiates voluntary retirement program in TV unit amid challenges from Chinese competitors

Published: 18 Aug. 2025, 22:05

LG Electronics' headquarters in Yeongdeungpo District, western Seoul, is pictured on April 7. [ YONHAP]

LG Electronics is offering voluntary retirement in its TV division for the first time in two years, a move analysts say highlights the Korean television industry’s increasingly desperate fight against cheaper Chinese rivals.

According to industry sources on Monday, LG Electronics is accepting applications from employees in the MS division (Media and Entertainment Solution), which oversees TV sales. Eligible workers include those over 50 or employees with years of poor performance. Retirees will receive up to three years’ salary, depending on tenure, along with severance benefits and child education subsidies.

“The program is strictly voluntary,” LG Electronics said. “Whether it will expand to other divisions has not been decided.”

The company previously carried out broad retirement programs in 2022 and 2023, but this time it is narrowing the cuts to its MS division. LG Electronics explained that the company is “offering the voluntary retirement program to accelerate the transformation into a young and powerful organization and strengthen competitiveness.”

According to LG Electronics’ semiannual report released Aug. 14, the MS division posted a 186.8 billion won ($134.8 million) operating loss in the first half of this year. It was the only division in the company to see a loss. Average TV prices fell 3.8 percent last year compared to 2023 and another 2.5 percent in the first half of this year. Market tracker Omdia said LG Electronics’ global TV shipments in the first quarter gave it a 10.7 percent market share, trailing Samsung Electronics with 19.2 percent, TCL with 13.7 percent, and Hisense with 11.9 percent.

LG Electronics showcases a special exhibition of its LG OLED evo in collaboration with renowned artist Yinka Ilori at The Conran Shop's premium lifestyle store in Chelsea, London, through June 24.

LG Electronics’ position has weakened as low-cost Chinese manufacturers erode its market share. Korean firms no longer produce liquid-crystal display (LCD) panels domestically, forcing LG Electronics to rely on imports from Chinese suppliers such as BOE. Last year, LG Electronics spent nearly 4 trillion won on LCD modules from BOE, more than its entire annual operating profit.
LG maintains the top spot in organic light-emitting diode (OLED) TVs, but the market remains small. Industry analysts note that 90 percent of global TV demand is still for LCD models.

Of the 59.3 million TVs sold last year by Samsung and LG combined, 92.2 percent, or 5,468 TVs, were LCDs. LG Electronics set a sales target of 3.5 million OLED TVs, but shipped only 3.18 million. In other words, low-cost LCD TVs are being overtaken by China and premium models by Samsung, while LG Electronics’ OLED TVs are facing limited demand.

Samsung's Neo QLED 8K TV [YONHAP]

Samsung holds the lead, but Walmart looms

Samsung Electronics retained the top spot in the global TV market for the 19th consecutive year, thanks to premium lines such as Neo QLED and OLED. But even Samsung faces rising threats in North America, its biggest battleground.

Omdia data show that in the first quarter, Samsung led North America with a 21.6 percent share. Chinese brands followed with brands like Vizio, which has 11.9 percent share, TCL with 10.9 percent and Hisense with 10.8 percent. LG Electronics ranked fifth with 9.2 percent. But the fastest growth came from Walmart’s private brand Onn TVs, produced by manufacturers in China and Taiwan. They sell for about 40 percent less than Samsung models and are gaining popularity in North America.

While Omdia classifies them as “others” in the global market, industry officials estimate Onn’s North American share at 13 percent, effectively making it the No. 2 player behind Samsung. Walmart has also acquired Vizio and plans to convert it into an in-house brand by year’s end. If combined with Onn, Walmart could become the largest TV supplier in North America.

The fight shifts to platforms

Another challenge is the shift from hardware to software. Operating system (OS) platforms now generate recurring revenue through advertising, subscriptions and content sales, making them a critical part of the TV business. Industry insiders say Samsung Electronics and LG Electronics recently began making full efforts to boost platform-based subscription sales to offset sluggish TV sales.

In North America, Roku OS dominates with a 34 percent market share, far ahead of Samsung’s Tizen OS at 22 percent. Walmart’s Onn TVs and some Chinese brands already use Roku OS. But Walmart plans to switch Vizio’s SmartCast OS to Onn models as well, potentially consolidating both hardware and software control.

According to Patrick Horner, head of consumer electronics research at Omdia, Walmart could overtake Samsung, which has led the market for 19 years, by combining hardware, OS and advertising into a vertically integrated strategy. That could give Walmart direct access to billions of dollars in ad revenue from living room audiences, he added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE GA-RAM [[email protected]]