![[서울신문] LG Electronics mobile phone withdrawal decision… Japanese press “The cause of being pushed by Chinese companies”](https://img.seoul.co.kr/img/upload/2021/04/05/SSI_20210405113224.jpg "[서울신문] LG Electronics mobile phone withdrawal decision… Japanese press “The cause of being pushed by Chinese companies”")
According to the business community, on the morning of the 15th, LG Electronics will officially withdraw the smartphone business by holding the board of directors at the headquarters in Yeouido, with President Kwon Bong-seok, vice president Bae Doo-yong, and vice chairman Kwon Young-soo.
After LG Electronics decided to withdraw the business, it is known that it will relocate the manpower of the mobile communication (MC) division, which is a business unit, and is attracting attention. The photo shows LG Twin Tower in Yeongdeungpo-gu, Seoul this morning. 2021.4.5
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▲ LG Electronics meets the board of directors and decides to withdraw from the smartphone business with a cumulative operating deficit of over 5 trillion won.
According to the business community, on the morning of the 15th, LG Electronics will officially withdraw the smartphone business by holding the board of directors at the headquarters in Yeouido, with President Kwon Bong-seok, vice president Bae Doo-yong, and vice chairman Kwon Young-soo.
After LG Electronics decided to withdraw the business, it is known that it will relocate the manpower of the mobile communication (MC) division, which is a business unit, and is attracting attention. The photo shows LG Twin Tower in Yeongdeungpo-gu, Seoul this morning. 2021.4.5
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“There is a possibility of outflow of talent to Chinese companies”
In connection with LG Electronics’ decision to end production and sales of mobile phones, Japanese media reported that “the cause is being pushed by China.”
On the 5th, NHK analyzed the background of LG Electronics’ decision to end production and sales of mobile phones, saying, “Amid the widening gap between Apple and South Korean Samsung Electronics in the high-end model market, it was pushed back by Chinese companies.”
Nippon Geizai Shimbun (Nikkei) diagnosed, “Korean companies that were driving Japanese electricity companies into a corner in the past have also begun to withdraw because they were pursued by Chinese companies.”
LG Electronics’ mobile phone business reached its peak in sales in 2014, but it was evaluated that the situation continued to be pushed back by the advances of Chinese companies such as Huawei, Xiaomi, and Oppo.
The Japanese media is also paying attention to the movements of talented people who were active in the mobile communications (MC) business of LG Electronics in charge of mobile phones.
Nikkei said that LG Electronics gave up the sale of the business unit because of fear of a technology leak.
Regarding the policy of relocating them to artificial intelligence (AI) or electric vehicles (EV), etc., Kyodo News said, “There is a possibility that human resources may leak out to Chinese companies expanding their power in the smartphone market. It is opaque.”
Reporter Kim Chae-hyun [email protected]