Wednesday, August 19, 2026
The electronics giant is taking its appliance subscription strategy into housing developments and international markets, building recurring revenue around products traditionally sold through one-time purchases.
LG Electronics’ appliance subscription business hit a first-half record in 2026 as the company continues to build more recurring revenue around products it has traditionally sold once.
Appliance subscription revenue reached approximately KRW 1.15 trillion ($820 million) in the first half of 2026, excluding care-service revenue, according to Korea Herald and MoneyToday, citing LG’s August 14 half-year filing. Revenue was up 8.2% from approximately KRW 1.06 trillion a year earlier and more than three times the KRW 368.6 billion reported for the first half of 2022.
LG had appliance rental and subscription programs before 2023. That year, the company made subscriptions and services a bigger part of its broader growth strategy, with the goal of generating more revenue after the initial hardware sale.
Three years later, the numbers show the strategy gaining traction. LG is expanding it into more products, new markets and B2B distribution relationships.
LG has moved beyond testing whether consumers will subscribe to appliances. It is now using the model as a growth strategy.
What LG Means by an Appliance Subscription
LG Subscribe sits on top of a rental/lease-style structure.
Customers make monthly payments and LG retains ownership of the appliance during the contract term. In Malaysia, ownership transfers after the full term and required payments are completed.
The subscription layer adds maintenance, warranty and care services.
LG’s own investor materials use a broad definition of subscription, including rental, lease and service contracts such as annual maintenance agreements.
| | Traditional Purchase | LG Subscribe |
|---|
| Payment | Upfront purchase or financing | Monthly payments over a multiyear term |
| Ownership | Customer owns the appliance | LG retains ownership during the term; ownership can transfer at completion |
| Service | Standard warranty; maintenance often separate | Maintenance, warranty and care are built into the offer |
| Customer relationship | Centered largely around the purchase | Billing and service keep LG connected throughout the contract |
Subscription Is Becoming a Meaningful Growth Business
LG reported nearly KRW 2.5 trillion in subscription-based revenue in 2025, up 29% year over year.
Subscription remains a relatively small part of LG’s overall business. The company generated KRW 89.2 trillion in total revenue in 2025, putting subscription-based revenue at less than 3% of the company total.
But LG is treating it as a defined growth business.
In the first quarter of 2026, broader subscription revenue, including products and services, reached KRW 640 billion, up 15% year over year. Second-quarter revenue reached KRW 660 billion, up 5%.
Those quarterly figures use a broader definition than the KRW 1.15 trillion first-half appliance-subscription number, which excludes care-service revenue.
LG says the subscription business generates ongoing service revenue after the point of sale and contributes to a more stable earnings structure for its home-appliance operation.
Housing Gives LG a New Distribution Channel
In July, LG announced a partnership with Hyundai Engineering & Construction that could make appliance subscriptions available to approximately 7,000 households across three redevelopment districts in Seoul.
Residents will be able to select packages covering five to seven appliance categories, including refrigerators, washing machines, dryers and dishwashers. Professional care services are included.
LG also has an agreement with Korea Land and Housing Corporation, or LH, covering 5,400 public rental homes across 28 complexes.
The structure of the LH deal is different from a direct consumer subscription. LH is the contracting customer and pays for the service, while residents use the appliances.
For LG, that opens another route to market.
Instead of relying only on individual households to find and choose LG Subscribe, the company can work with developers, housing organizations and other B2B partners to put the model into thousands of homes at a time.
International Growth Comes With an Operating Challenge
Malaysia has become one of LG’s more established subscription markets.
LG began its overseas rental-subscription business there in 2019. In June, the company said it had reached 130 LG Subscribe branded locations across Malaysia.
LG is also expanding subscription operations in other markets, including Thailand, and continues to identify international growth as a priority.
Scaling this kind of subscription is more complicated than adding recurring billing.
Appliances have to be delivered and installed. Customers need maintenance and repairs. Service has to work throughout a contract that can last for years.
If LG wants to grow subscription revenue internationally, the operating model has to grow with it.
INSIDER TAKE
The most interesting part of LG’s strategy may be what happens after the first appliance enters the home.
With a traditional sale, much of the direct commercial relationship can end at checkout. LG Subscribe keeps the company connected through billing, maintenance and service.
That creates another opportunity when the customer needs something else.
LG can offer another appliance or another service to a household it already knows. In Malaysia, the company is already encouraging existing subscribers to add another LG appliance subscription with discounted pricing.
The housing deals give LG another way into the home. Once the relationship starts, LG has more opportunities to serve that household over time.
The subscription opportunity here comes from staying useful after the original transaction.
For subscription operators, that may be the most useful part of LG’s playbook. A recurring model can create value beyond the monthly payment when it keeps the customer relationship active and gives the business more opportunities to earn the next purchase.
Related Member Resource
For a deeper look at what changes when recurring revenue becomes part of a business built around transactions:
Sources
- LG Electronics 2026 Half-Year Report, DART, August 14, 2026
- LG Electronics First-Quarter 2026 Financial Results
- LG Electronics Second-Quarter 2026 Financial Results
- LG Electronics Fourth-Quarter and Full-Year 2025 Financial Results
- LG Electronics, Key Elements of LG’s Smart Life Solutions Strategy, July 12, 2023
- LG Malaysia, LG Subscribe Terms and Conditions
- LG Electronics, Hyundai Engineering & Construction Appliance Subscription Partnership
- LG Malaysia, LG Subscribe Expands to 130 Branded Locations
- LG Malaysia, Existing Subscriber Additional Appliance Offer
- Korea Herald, “LG Appliance Subscription Revenue Triples From 2022, Hits H1 Record,." August 19, 2026
- MoneyToday, “LG Electronics Home Appliance Subscription Revenue Grows Threefold,." August 18, 2026
About Subscription Insider®
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