Plex Media Server has to transcode the video to keep the video, audio, and subtitles in sync with each other.
I don’t know if it is a limitation of TV hardware, WebOS, transport protocols, etc. Someone from Plex will have to provide the details.
Edit: It is a limitation of the HLS protocol. See the following thread. The main topic is unrelated (and resolved), but the post provides info regarding LG, transcoded audio, and subtitles.