Kwak Doyoung, Head of LG Electronics North America: "We Expect to Break into the Top Three in the U.S. Builder Appliance Market This Year"

Pioneering the builder market on the back of LG Electronics' brand trust
Reflecting shifting U.S. trends...36-inch large induction cooktop
Diversifying options with premium finishes and more
Enhancing AI capabilities in the SKS luxury brand
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Paek Seungtae, Head of the Home Solutions Division at LG Electronics, and Kwak Doyoung, President of LG Electronics North America (right).

"By the end of this year, LG Electronics expects to achieve its goal of ranking in the top three in the North American home appliance market."

Kwak Doyoung, President of LG Electronics North America, said at a press conference held on the 17th (local time) during "KBIS 2026" in Orlando, Florida, USA, "Last year we delivered double-digit growth even though the housing market was significantly depressed due to reciprocal tariffs and rising domestic labor and material costs in the United States."

The U.S. home appliance market is currently the largest in the world, with a size of 40 billion dollars (about 53 trillion won). The U.S. appliance market is broadly divided into individual consumers (B2C) and builders (B2B), and the builder segment, which is the B2B market, accounts for about 20% of the total appliance market (about 7 billion dollars). In the United States, when homes are built, appliances are pre-installed as built-ins before they are sold. At this point, large construction companies known as builders sign single contracts to supply appliances for thousands of units at once, and this is called the "builder market."

LG Electronics has been actively nurturing the builder business in earnest since 2024 as a breakthrough strategy for the now-mature appliance market. Over the past three years, the company’s growth in the U.S. builder market has been remarkable. Sales in 2024 surged by about 60% year-on-year, and in 2025 they increased by 40%, translating into a rapid average annual growth rate of 45%.

The builder market is less sensitive to economic cycles, so demand is stable, and it enables long-term profit generation based on partnerships with construction companies. For appliance manufacturers, it is like a "goose that lays golden eggs," but the barriers to entry are extremely high. Because builders want to be sure that appliances can still be serviced even 10 years later, they only work with highly trusted large corporations, and since appliances must be installed simultaneously in hundreds of units, it is difficult to win contracts without a robust logistics network for installation and maintenance.

LG Electronics was able to deliver tangible results within three years of fully targeting the builder market thanks in part to its strong brand trust. President Kwak said, "Consumer satisfaction with LG Electronics appliances has already been proven, and this level of trust is also working as a differentiating factor for us with U.S. builders."

The latest trend in the builder market is the "transformation of the kitchen." It has become popular to integrate the kitchen with the living room, expanding it and designing it as an open space. As a result, kitchen appliances are getting larger and more premium. President Kwak said, "Kitchen and living room are merging into a new multi-purpose space centered on family life, culture, and entertainment," adding, "As kitchens become larger, the configuration of appliances is also diversifying into a main refrigerator, a wine refrigerator, and a mini refrigerator in the island table. In some cases, builders themselves proactively propose such options, and from LG Electronics’ perspective, this creates many opportunities."

LG Electronics is conducting a cooking demonstration using SKS-brand kitchen products in Orlando, Florida, USA.

SKS (Signature Kitchen Suite), LG Electronics’ luxury brand, is shaking up the builder market this year by introducing stainless-steel finishes, a 36-inch large induction cooktop, and expanded AI features. At the exhibition, a demonstration of fully automated cooking using AI drew the full attention of visitors. The AI features of the newly introduced Signature refrigerator are also receiving a positive response. In particular, the addition of a washing machine to the product lineup this year stands out.

Paek Seungtae, Head of the Home Solutions Division at LG Electronics, said, "We have incorporated AI features that learn how often customers open and close the refrigerator door and at what times they use it most intensively, so that the cooling speed is significantly increased during peak usage hours to minimize temperature fluctuation even when the door is opened. We also added an AI function that automatically shortens the ice-making cycle for customers who use a lot of ice, as in the United States," and added, "Competitors also have AI functions, but LG Electronics is differentiated by the fact that we manufacture in-house the core components (such as motors and compressors) needed to implement AI features."

In the second half of last year, LG Electronics signed contracts with two builders that operate across the United States. Builders typically sign long-term contracts ranging from at least 5 years to as long as 10 years. In particular, the company concluded an exclusive contract with Builder A under which only LG appliances are used.

President Kwak said, "The biggest difference between the U.S. builder market and Korea is that four types of appliances (cooking appliances, hoods, refrigerators, and dishwashers) must be installed in order to pass the U.S. completion inspection," adding, "From the builder’s perspective, appliances account for a small portion of the total home, but they are extremely important in terms of overall completeness."

Kitchen & Bath Industry Show 2026 LG Electronics booth. LG Electronics

However, there are also limitations. In the builder market, the infrastructure for product delivery, installation, and maintenance is extremely important. Because the four key appliance categories are mandatory items for the completion inspection, appliance manufacturers must meet delivery deadlines in line with builders’ construction schedules. If appliance deliveries are delayed, the completion inspection is also postponed, and all sales schedules are pushed back.

President Kwak said, "GE, with its 100-year history, has infrastructure across more than 130 hubs ranging from the main logistics warehouse and regional hub warehouses to construction sites," adding, "To build out infrastructure for delivery and installation to construction sites across the United States, LG Electronics is making significant investments and is reviewing ways to rapidly enhance our capabilities through partnerships with local delivery and installation companies."

The company is also thoroughly preparing for external variables. To respond to uncertainties such as reciprocal tariffs that have emerged since last year, it has established a global value chain. President Kwak said, "We place great importance on the global setup of our value chain, which allows us to respond quickly and appropriately to changes in the environment," adding, "Internally, we have assumed a large number of different scenarios and established extensive response guidelines."

Latin American subsidiaries are also a variable due to the Trump administration’s foreign and security policies, but LG Electronics does not expect major changes to occur. President Kwak said, "Because major U.S. manufacturers have already developed Mexico as a regional production base, if barriers are erected in Mexico, there would be very few companies left that can conduct business properly," adding, "It is more likely that rules of origin will be revised or strengthened in ways that are favorable to the United States, and we are therefore exploring ways to expand collaboration with U.S. parts suppliers."

This content was produced with the assistance of AI translation services.