LG Electronics approves division of electric vehicle dynamometer… Smartphones still “review all possibilities”

Input 2021.03.24 10:23 | Revision 2021.03.24 11:13

LG Electronics (066570)Held the 19th regular shareholders’ meeting at LG Twin Tower in Yeouido, Seoul on the 24th. The shareholders’ meeting, which started at 9 am, ended in 20 minutes. Considering that there were six major listing agendas, the processing time per agenda was less than 5 minutes. At the shareholders’ meeting, there were no separate questions from shareholders.

At the shareholders’ meeting, the approval of the division of the electric vehicle power transmission system (powertrain) business within the electric vehicle (VS) division, which LG Electronics used as one of the new growth engines, was important. LG Electronics owns a 100% stake in LG Magna ePowertrain (tentative name), a newly established company through the physical split. Then, Magna International, the world’s third-largest auto parts maker, will acquire a 49% stake in the new spin-off company. The official launch of the joint venture (JV) was set in July.

Although it did not go into the main agenda of the shareholders’ meeting on this day, the direction of the smartphone (MC) division, which attracted the attention of the US, reiterated its previous position. Bae Doo-yong, Vice President of LG Electronics’ Chief Financial Officer (CFO), said at the shareholders’ meeting that day, “we are looking at all possibilities with the open potential.” Earlier in January, Kwon Bong-seok, CEO of LG Electronics, said in an e-mail sent to members of the company that “we are carefully reviewing the direction of mobile business operation with all possibilities open.”

The industry predicts that LG Electronics had initially planned to sell its MC division to overseas companies, but when no company to acquire it appeared, it was decided to dismantle the division. The MC division, which was in the red for 23 consecutive quarters until the fourth quarter of last year, suffered a cumulative loss of 5 trillion won.

In addition, agendas such as approval of financial statements, approval of amendments to the articles of incorporation, appointment of directors, appointment of directors to become members of the audit committee, and approval of the limit of compensation for directors were decided as the original draft. LG Electronics introduced an electronic voting system from this week’s meeting in response to the aftermath of the novel coronavirus infection (Corona 19).