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LG Electronics Inc. and LG Chem Ltd. allocated a combined 325.6 billion won in provisions for costs related to General Motors (GM) Co.'s recall of 68,000 Chevrolet Bolt electric vehicles (EV) over potential fire risks.
The models affected were those produced between 2017 and 2019.
LG Electronics allocated 234.6 billion won for the recall, while LG Chem booked 91 billion won.
Consequently, LG Electronics reduced its second-quarter operating profit report from the previously announced 1.11 trillion won to 878 billion won. LG Chem also revised its operating profit in the period, bringing it down from 2.23 trillion won to 2.13 trillion.
LG Electronics supplied GM with battery modules made with LG Energy Solution's battery cells.
The two South Korean firms are coordinating with GM to analyze fire risks.
Their provisions may be revised depending on the recall process investigation results.
