SEOUL — LG Electronics has successfully secured a major government contract to supply energy-efficient air conditioners to vulnerable social groups and welfare facilities across South Korea. This win marks a significant shift in the public procurement market, as Samsung Electronics had continuously monopolized this specific government project for the past four years.
According to Narajangter, the Korea Online E-Procurement System run by the Public Procurement Service, LG Electronics was selected as the official cooling appliance supplier for the "Energy Efficiency Improvement Project." This initiative is orchestrated by the Korea Energy Foundation under the Ministry of Trade, Industry and Energy.
Under this contract, LG Electronics is already in the process of rolling out its newly released 2026 wall-mounted air conditioner models to approximately 19,000 low-income households recommended by 229 local governments nationwide. Additionally, starting this month, the tech giant will begin installing both wall-mounted and stand-type air conditioners in numerous social welfare facilities.
The state-led project aims to alleviate the energy burden on vulnerable populations—including basic livelihood security recipients, the near-poverty line (cha-sang-wi) class, and low-income families nominated by local governors—by replacing outdated, inefficient cooling equipment with high-efficiency models. The budget for this year's initiative is substantial: the segment dedicated to high-efficiency wall-mounted units for vulnerable households is valued at approximately 13.3 billion KRW, while the support program for social welfare facilities is worth around 1.7 billion KRW.
The flagship product selected for this massive rollout is the 2026 LG Whisen wall-mounted air conditioner, designed for a 22.8-square-meter coverage area. Crucially for low-income households sensitive to utility costs, the model boasts a Grade 1 Energy Efficiency Rating—the highest level possible in South Korea.
To further mitigate the burden of summer electricity bills, the units feature a specialized two-stage power-saving mode. Users can also monitor power consumption and set target usage limits via the LG ThinQ smartphone application, utilizing a feature called the "Power-Saving Planner." Furthermore, the appliances are integrated with advanced artificial intelligence (AI) functions, such as "AI Smart Wind" and "AI Sleep Mode," which automatically adjust airflow and temperature based on user patterns and environmental factors.
Industry insiders note that capturing this contract from Samsung Electronics, which had held a firm grip on the supply chain from 2022 to 2025, represents a major strategic victory for LG. While the direct profitability of public welfare contracts is often lower than commercial retail, the long-term value lies in accumulating public procurement experience and reinforcing national brand trust.
"This achievement is a direct result of the government recognizing the sheer excellence of our high-efficiency air conditioning products, alongside our nationwide maintenance and service capabilities," an official representative from LG Electronics stated. "Our edge in high-efficiency energy technology, combined with hyper-personalized convenience features driven by artificial intelligence, served as the deciding factors in being chosen as this year’s sole operator."
With the summer heat waves projected to become more severe, the timely installation of these AI-driven, energy-saving units is expected to provide both environmental relief and financial security to tens of thousands of households across the nation.
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