LG Corp. (003550) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LG Corp. is a holding company that does not sell products directly but instead holds stakes in the LG Group's core affiliates — LG Electronics, LG Chem, LG Uplus, LG H&H, LG CNS, and others — earning money from dividends and brand royalties. Consolidated net profit was ₩737.2 billion in 2025 (+28.3% year over year), but first-quarter 2026 net profit fell 37.7% year over year to ₩379.0 billion, because subsidiary results reflected via the equity method swing widely from quarter to quarter. What stands out lately is that LG Corp.'s true value is better viewed through the market value of the stakes it holds (net asset value, or NAV) than through the P/E ratio, and the current share price is at roughly a 35% discount to that NAV; that said, this discount is a common trait of holding companies, so unless subsidiary share prices rise, the discount alone is unlikely to narrow the share price.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Holding Companies”, a type typically read first through discount to NAV.
A holding company is less a maker of products than a vessel that holds stakes in several subsidiaries. So rather than an earnings multiple, the first lens is the discount to NAV — the market value against the summed worth of everything it owns.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 1.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.0% lower than a year earlier.
- ROE is 1.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 9.7%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2017-12-31
Largest shareholder Koo Bon-moo 11.28% (individual)
Controlling bloc incl. related parties 36.77%
With the controlling bloc holding 37%, the ownership structure is stable.
Net asset value (NAV) assessment 22% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| LG Uplus | 38.25% |
| LG Electronics | 35.26% |
| LG H&H | 34.74% |
| LG Chem | 31.52% |
| LX International | 24.69% |
🔎 In-depth analysis Reading
LG Corp. is not a company that makes and sells products itself but a pure holding company that holds stakes in LG Group affiliates and collects their results and dividends. Its core holdings, among listed companies, are about 33.7% of LG Electronics, about 33.5% of LG Chem, about 37.9% of LG Uplus, about 30.1% of LG H&H, and about 50% of LG CNS, which listed in 2025. There are broadly three revenue sources. The first is equity-method profit reflected in the accounts as the subsidiaries earn. The second is dividends paid by the subsidiaries. The third is brand royalties that affiliates pay to use the 'LG' brand. In short, this company's results present, in compressed form, the broad business flow of a group spread across electronics, chemicals, telecom, and consumer goods.
The latest close is ₩104,500 and the market capitalization is ₩15.8 trillion. The price sits above its 20-day moving average (₩99,195) and below its 60-day moving average (₩108,212). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.5, a neutral level. The one-month change is +2.1%, the three-month change is +1.5%, and the position relative to the 52-week high is -37.0%. Relative strength versus the KOSPI is 51 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 51% of all stocks. Over the past three months it outpaced the index by 18.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Explaining the valuation metrics at a beginner's level: the P/E ratio (how many times one year's earnings the share price represents) is 21.86x and the P/B (the price relative to book net assets) is 0.53x. But for a holding company these two metrics should not be taken at face value. The P/E is easily distorted because subsidiary equity-method profit swings from quarter to quarter. The P/B, because subsidiary stakes are recorded on the books at 'old acquisition cost' and low, actually makes the share price look more expensive than it really is. So the core metric for a holding company is the NAV discount (how cheaply the share price trades relative to the market value of the stakes it holds), currently about a 35% discount. On profitability, ROE (how much the company earns in a year on its equity) looks low at 2.6%, but this is inherently low for a holding company because equity is heavily made up of subsidiary stakes. The balance sheet is sturdy. The debt ratio (debt relative to equity) is a very low 12.7% and the interest-coverage ratio is 24x. On an EV (enterprise value, market cap plus net debt) basis, net debt is -₩725.9 billion — a net-cash position with more cash than debt. The FCF yield (the ratio of cash actually earned to market cap) is 5.7%, so it has the cash-generating power to cover its dividend.
The five-year trajectory of revenue and profit shows the whole group coming down from a peak. Consolidated operating profit fell from ₩2,460.1 billion in 2021 to ₩912.2 billion in 2025. Net profit likewise fell over the same period, from ₩2,565.5 billion to ₩737.2 billion. Looking at 2025 net profit alone, it rebounded +28.3% year over year, but this is largely a base effect after the prior year (2024) fell sharply at -54.4%. First-quarter 2026 consolidated net profit was ₩379.0 billion, down 37.7% year over year. Holding-company earnings are directly linked to the business cycles of its chemical, telecom, and consumer-goods subsidiaries. So this year's earnings direction depends on the individual subsidiaries — in particular the recovery pace of LG Chem's petrochemicals and battery materials and of LG Electronics' home appliances and vehicle electronics. For this reason, it is more accurate to view LG Corp. from a NAV standpoint than to pin this year's earnings to a single figure.
The flow of disclosures centers on capital-allocation activity befitting a holding company. Preliminary first-quarter 2026 results, disclosed in May, confirmed a slowdown in subsidiary results. In April a regular dividend (₩3,100 per share) and an IR followed. The payout ratio was about 64.9%, maintaining a policy that returns a substantial part of profit to shareholders. Disclosures on treasury-stock status also recur; these are a typical holding-company tool aimed at shareholder returns and narrowing the NAV discount. Separately, in early April there was a disclosure on an investment decision related to a group-level new-drug candidate in-licensing (License-in). This is accurately understood not as LG Corp.'s own business but in the context that subsidiary LG Chem's anticancer new-drug development activity matters to the group.
LG Corp.'s strengths come down to two. First, it lets you hold, in one place, stakes in quality subsidiaries diversified across electronics, chemicals, telecom, and consumer goods. Second, it is in a net-cash position with a payout ratio of about 65% and clear shareholder-return intent including treasury-stock retirement. On top of this, the current share price is at roughly a 35% discount to NAV, trading in the middle of the usual holding-company discount range (30-50%). The cautions are just as clear. The holding-company discount is structural, so unless subsidiary share prices rise, the share price is hard to narrow through a shrinking discount alone. Also, because earnings are booked via the equity method and swing from quarter to quarter, there is little need to react to short-term results. In sum, when the business cycle of the subsidiaries (especially LG Electronics and LG Chem) turns, NAV and the dividend gain force together. Conversely, if subsidiary results stay pressured, the discount is a stock whose gap seldom narrows.
🔎 Valuation vs peers Inconclusive
Compared against representative domestic holding and operating-holding companies (pure holding and group holding companies). Because a holding company's value hinges on the market value of subsidiary stakes, the NAV discount, dividend, and net-cash view are considered together rather than a simple P/E or P/B comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Inc. | 23.10x | 1.25x | 26.75% |
| HD Hyundai | 17.97x | 1.58x | 20.21% |
| Lotte Corporation | — | 0.38x | -10.66% |
| Samyang Holdings | — | 0.24x | -10.73% |
For the holding company LG Corp., over- or undervaluation is hard to declare from surface metrics of a P/E of 20.8x and a P/B of 0.54x alone. Earnings are booked via the subsidiary equity method and swing from quarter to quarter, and book net assets reflect subsidiary stakes at old acquisition cost and low. So the real yardstick is NAV. The current share price is at roughly a 35% discount to the market value of the stakes it holds, within the usual holding-company discount range (30-50%) compared with domestic holding companies such as SK and HD Hyundai. Net cash and a high payout ratio are strengths that support the downside. That said, the holding-company discount is structural, so unless subsidiary share prices rise, the share price is hard to narrow through the discount alone. On this basis, rather than declaring it cheap or expensive for now, it is reasonable to view the subsidiary business cycle and the NAV trend together.
Price history Close · MA20 · MA60
The latest close is ₩104,500 and the market capitalization is ₩15.8 trillion. The price sits above its 20-day moving average (₩99,195) and below its 60-day moving average (₩108,212). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.5, a neutral level. The one-month change is +2.1%, the three-month change is +1.5%, and the position relative to the 52-week high is -37.0%. Relative strength versus the KOSPI is 51 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 51% of all stocks. Over the past three months it outpaced the index by 18.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +18.84% / 6M -6.54% / 12M -31.71%
Key metrics Computed vs sector median
Valuation
The P/E of 21.86x is above the sector median (8.18x). The P/B is 0.53x.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 1.7%, below the sector average (4.0%). The operating margin is 9.7%. The debt ratio is 11.5%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.2B | $5.0B | $5.1B | +1.07% ↑ faster |
| Operating profit | $1.1B | $679.2M | $640.8M | -5.65% ↑ faster |
| Net profit | $886.0M | $403.7M | $517.9M | +28.28% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.8B | $5.0B | $5.2B | $5.0B | $5.1B |
| Operating profit | $1.7B | $1.4B | $1.1B | $679.2M | $640.8M |
| Net profit | $1.8B | $1.4B | $886.0M | $403.7M | $517.9M |
| Revenue CAGR | 4-yr avg 1.40% | ||||
Revenue rose 1.1% year over year (2023 ₩7.4 trillion → 2024 ₩7.2 trillion → 2025 ₩7.3 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 5.7% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.4%. The two-year revenue CAGR is -1.3%. In the most recent quarter (Q1 2026), revenue was 7.0% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-07EarningsDisclosure of preliminary consolidated Q1 2026 results. Revenue ₩1,800.6 billion (-7.0% year over year), operating profit ₩413.8 billion (-35.1%), net profit ₩379.0 billion (-37.7%), reflecting a slowdown in subsidiary results.Short term: weaker headline profit from lower equity-method income. Medium term: whether subsidiary business cycles recover will determine the earnings direction. Source
- 2026-04-24DividendCash and in-kind dividend decision and IR disclosure. Dividend of ₩3,100 per share, a payout ratio of about 64.9%, maintaining a high shareholder-return policy.Medium term: a stable, net-cash-backed dividend supports the downside of the NAV discount. Source
- 2026-06-01FilingRegular disclosures on large-scale intra-group transactions related to treasury-stock acquisition and on major shareholding status. Shareholder-value activity through the use of treasury stock continues.Medium term: treasury-stock retirement and acquisition are capital-allocation tools aimed at narrowing the holding-company NAV discount. Source
- 2026-04-01UpdateDisclosure of a major management matter on an investment decision related to a group-level new-drug candidate in-licensing (License-in). This is not LG Corp.'s own business but corresponds to subsidiary LG Chem's strengthening of its anticancer new-drug pipeline.Medium term: if the subsidiary's new-drug value grows, it is indirectly reflected in stake value (NAV). That said, it is not the core variable of the holding company's value. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-24Disclosure
- 2026-04-24EarningsEarnings disclosure
- 2026-04-01Disclosure
- 2026-03-31DividendCash/stock dividend decision (amended)
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.