[경제]LG Electronics mobile phone disappears…withdrawal of business in 26 years

[경제]LG Electronics mobile phone disappears…withdrawal of business in 26 years

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Into the history of LG mobile phones… End of business on July 31
January business adjustment plan announced… There is no result of the sale discussion
LG “Maintain AS·Updates to avoid inconvenience of existing users”

[앵커]

LG Electronics has announced the official withdrawal of the mobile business after 26 years.

The plan is to close the mobile business, which was a’sick finger’, with a cumulative deficit of 5 trillion won, and to focus on new businesses in the future, such as electronic parts.

This is reporter Lee Ji-eun.

[기자]

LG phones disappear into history.

LG Electronics held the board of directors and announced that it will end its mobile business on July 31st.

In January, after announcing the business adjustment plan including the sale, we discussed with the Vietnam Vin Group, but when there was no performance, we ended the business.

The LG mobile phone, which started as the’Hwatong’ brand by LG Information & Communication in 1995, enjoyed its peak with chocolate phones and Prada phones in the era of feature phones.

However, as we responded lately to the era of smartphones, we suffered a struggle and recorded a deficit for the sixth consecutive year.

In particular, Samsung and Apple’s yanggang structure in the premium market has been hardened, and Chinese companies’ offensive in the entry-level market has been struggling.

LG Electronics explained its future plans to focus its capabilities on core businesses and speed up the preparation of new businesses.

With the launch of’LG Magna E-Powertrain’, a joint venture for electric vehicle power transmission system in July, LG Electronics is focusing on new businesses such as auto parts, AI, and robots.

The policy is that more than 3,000 employees of the mobile business unit will be relocated to another business unit, and core technology R&D will continue.

[이종민 / LG전자 홍보팀 책임 : 휴대폰 사업의 자산과 노하우는 기존 사업의 경쟁력을 강화하고 미래 사업을 준비하기 위해 적극적으로 활용할 예정입니다.]

With the disappearance of LG phones, Samsung’s monopoly system in the domestic market is expected to become stronger in the future.

[박희준 / 연세대 산업공학과 교수 : 시장에 있는 소비자들은 일부 선택의 폭이 줄어들 겁니다. 하지만 삼성, 애플과 같은 기업들이 LG전자가 가지고 있던 중고가 시장까지 상품군의 영역을 확대해나가면서 아마 기존 시장의 점유율이 좀 더 늘어나는 (효과가 만들어질 것 같고요.)]

LG also announced that it will keep its after-sales service and software updates so that existing consumers will not experience any inconvenience.

YTN Lee Ji-eun[[email protected]]is.

[저작권자(c) YTN & YTN plus 무단전재 및 재배포 금지]

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