LG Electronics formalized the withdrawal of the smartphone business and started relocating 3,700 employees in the MC division.



LG Electronics announced the end of the mobile phone business today (5th), saying, "We will maintain the employment of the employees of the MC business division." We plan to relocate it in consideration of this.”



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 needs of each business unit and affiliates.



As of the third quarter of last year, the number of employees in the MC division was about 3,700.



LG Electronics explains that many of them are R&D-related personnel, so it is not difficult to convert and deploy within the group.



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 automotive parts (VS) 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, spaces, etc. 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."



(Photo = Yonhap News)