![[초점] ‘Choice and Concentration’ of Gwang-Mo Gu… Raise the battlefield and fold your smartphone](http://img.lb.inews24.com/facebookexternalhit/face/626x352/image_joy/202101/1543378897354_1_181536.jpg "[초점] ‘Choice and Concentration’ of Gwang-Mo Gu… Raise the battlefield and fold your smartphone")
[아이뉴스24 서민지 기자] LG Electronics is struggling to rearrange the smartphone business division, which continues to be sluggish. LG Electronics has responded to the recent successive withdrawal of the smartphone business unit as’unworked’, but changed its position as “opening all possibilities,” suggesting business reorganization.
In the business world, it is believed that a drastic change is being attempted with the establishment of the LG Group chairman Gu Kwang-mo. It is an interpretation that the strategy of’selection and concentration’ is continuing to focus on businesses with high potential for future growth and boldly organize what is not possible.
According to the industry on the 23rd, LG Electronics said in a statement on the 20th, “In order to improve the business structure of the MC business division, the efficiency of resource operation through improvement of the product portfolio in recent years, adjustment of global production sites, and the launch of innovative products, etc. He said, “We believe that we have reached the point of making the best choice by calmly judging our current and future competitiveness in relation to the mobile business.”
He added, “We are carefully examining the direction of business operation with all possibilities open now.”
This is the first time that LG Electronics has made an official position on the withdrawal of the smartphone business. In addition, LG Electronics President Kwon Bong-seok said in an e-mail sent to members of the MC business division that day, “No matter how the MC division’s business operation direction is determined, in principle, the employment of the members will be maintained, so there is no need to be anxious.”
LG Electronics, which once led the market with distinctive mobile phones such as chocolate phones and Prada phones, is being criticized for failing to respond quickly to market changes, such as entering the smartphone market relatively late. Last year, it launched’LG Velvet’ with a pet name and’LG Wing’, a swivel phone with a form factor innovation to revive the glory of the chocolate phone, but even this did not receive a great response from the market. As a result, it has not escaped the deficit for 23 consecutive quarters since the second quarter of 2015, and the cumulative operating deficit reached 5 trillion won by the end of last year.
In the business world, it is expected that Koo will organize the smartphone business, which has stagnated in growth, and focus on creating future food such as battlefields, artificial intelligence (AI), and robots. In fact, the LG Group is in an atmosphere that gives more power to future businesses after the’Gu Gwangmo System’ was established.
In particular, the field that stands out most is the electronic equipment business. Last year, LG Electronics decided to establish a joint venture in the electric vehicle powertrain field with Canada’s Magna International (Magna), an automobile parts maker, which shows its commitment to fostering new growth businesses.
After taking office, Chairman Koo has shown particular interest in the electric field business. In 2018, it acquired ZKW, an Austrian automotive lighting company, and is spurring discovery of new business models.
In addition, last year, LG Chem was concentrating its capabilities by launching LG Energy Solutions, where only the battery business division was separated through physical division. With this, the LG Group has grown into an electric electronics company that encompasses infotainment, battery, powertrain, display, vehicle communication and lighting components, from LG Electronics, LG Energy Solutions, LG Innotek, and LG Display.
It is also active in fostering AI business. In December of last year, LG Group launched the’LG AI Researcher’, an AI organization dedicated to 16 affiliates including LG Electronics, LG Display, LG Chem, LG Uplus, and LG CNS. The aim is to strengthen the AI business by securing the latest AI source technology at the group level and solving AI challenges.
In addition, earlier this month, it acquired Alfonso, a TV advertisement and data analysis startup, in line with the digital transformation. LG Electronics plans to improve its TV business portfolio through the acquisition of Alfonso, and to secure growth engines by differentiated service and content competitiveness.
At the shareholders’ meeting in March, the LG Group is also facing a change in which Koo’s uncle Koo Bon-joon will lead five companies, including LG International, LG Hausys, Silicon Works, LGMMA, and Pantos, and separate them from the LG Group.
A business official said, “LG is showing a drastic change as the system of Chairman Kwang-mo Koo enters.” .
Reporter Minji Seo [email protected]