In front of LG Twin Tower, Yeouido, Yeongdeungpo-gu, Seoul [사진 제공: 연합뉴스]
LG Electronics formalized the withdrawal of the smartphone business and started relocating 3,700 employees in the MC division.
In announcing the end of the mobile phone business, LG Electronics said, “We will maintain the employment of the employees of the MC division. To this end, we plan to relocate in consideration of the job competency of the employees and the demands of other LG Electronics divisions and LG affiliates “I said.
LG Electronics plans to begin the relocation process from this week as early as this week by investigating the intentions of individual employees and the demands of each business unit and affiliates.
As of the third quarter of last year, the MC division had about 3,700 people, and LG Electronics explained that it is not difficult to convert and deploy within the group because many of them are related to R&D.
It is expected that there will be a lot of demand for affiliates such as Changwon, Gyeongnam, which has a home appliance factory and research institute, the automobile parts business headquarters, a joint venture with Magna, and LG Energy Solutions, which makes batteries for electric vehicles.
LG Electronics plans to continue research and development such as core mobile technologies, so some personnel may be reassigned by securing original 6G technologies.
LG Electronics said, “Since core mobile technologies such as 6G mobile communications, cameras, and software are required for next-generation TVs, home appliances, electronic components, and robots, we will continue R&D centered on the CTO sector.” We will prepare for the era of the all-intelligent Internet, in which, objects, and spaces are closely and organically connected.
The use of overseas LG Electronics smartphone factories is expected to change.
LG Electronics has factories in Vietnam, Brazil, and India, and most of these facilities are concentrated in Vietnam.
LG Electronics previously stopped producing domestic smartphones in 2019 and integrated its domestic production line into its Haiphong factory in Vietnam, producing 10 million smartphones annually there.
An official from LG Electronics said, “Because Vietnam is also a global production base for other home appliances, there are many ways to utilize local facilities.”