LG Electronics, saving up to 1 trillion won per year
You have to bear the future opportunity cost
When a company organizes a business, it doesn’t end with ending the losses to come. This is because future business opportunities that must be given up are also a cost-effective procedure. This is why LG Electronics could not end the smartphone business early even though it suffered a deficit of several hundred billion won each year. KIPOST summarized the opportunity costs that LG Electronics had to bear when it sold or drastically reduced its smartphone business.
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