LG Electronics is expanding its production facilities in emerging markets such as India and Brazil while strengthening new business channels, including appliance subscription services and B2B operations. CEO Cho Joo-wan unveiled this “Global South” strategy at the company’s shareholder meeting on March 25. The Global South refers to emerging economies across Asia, Latin America, the Middle East, and Africa. As global supply chains undergo shifts due to U.S. President Donald Trump’s trade policies, LG aims to find new growth opportunities in high-potential emerging markets rather than in North America and Europe.
LG Electronics is shifting its global production base to emerging markets. The company is currently constructing its third factory in India, located in Sri City, Andhra Pradesh, to meet the growing demand for premium home appliances. In Brazil, LG is building a new production facility in Fazenda Rio Grande, set for completion next year. This will be the company’s second manufacturing plant in the country, focused on premium appliances and components. Once both facilities are operational, 16 out of LG’s 30 overseas production sites will be in the Global South. LG is also strengthening its research and development (R&D) capabilities in these regions. The company operates LG Soft India, an R&D center in Bengaluru, and has additional R&D subsidiaries in Vietnam and Indonesia. It also runs a TV research lab in Brazil.
LG’s intensified focus on these regions is driven by rapid market growth. A company official said, “Compared to North America and Europe, the Global South has lower home appliance penetration. However, as these economies expand, demand for premium products is also increasing.” The combined sales of LG’s five key subsidiaries in the Global South—Brazil, India, Indonesia, Vietnam, and Thailand—reached 16.34 trillion won last year, up 13.2% from the previous year. This growth rate is more than double LG’s overall sales increase of 6.6% during the same period.
