<Anchor>



LG Electronics, which had been deeply contemplating the mobile phone business, finally officially announced the withdrawal of the business.

We have not overcome the cumulative deficit of KRW 5 trillion, but we have decided to continue the repair and inspection services related to existing products.



This is reporter Han Ji-yeon.



<Reporter> With



the popularity of feature phones such as chocolate phones and Prada phones, LG Electronics' mobile business once rose to the third place in the world market.



[Ahn Seung-kwon/Former LG Electronics MC Business Headquarters (Press Conference for Breaking Through'Millions of Chocolate Phones' in 2007): (LG Phone) seems to play a role in leading the world's trends...

.]



However, failing to read the trend of change and entering smartphones later than competitors became a decisive factor of failure.



Eventually, the company decided to close the phone business after 26 years as of July 31st, failing to overcome the deficit for 23 consecutive quarters and the accumulated deficit of 5 trillion won.



The sale was negotiated with German Volkswagen, but there was no result.



The domestic smartphone market is occupied by 70% of Samsung, 20% of Apple, and 10% of LG. However, LG's abandonment of the business is expected to intensify the focus of Samsung Electronics.



[Kwon Seong-ryul/DB Financial Investment Industry Analysis Team Leader: I have to go to Samsung or Apple, but if someone who continues to use Android wants to use an Apple iPhone, it is a little bit burdensome.

It's only Samsung Electronics.]



At mid-to-low prices, Chinese products such as Xiaomi and Huawei are also expected to expand the market to some extent, but the brand reliability is low.



LG Electronics announced that it will continue the existing follow-up management even after the business is terminated.



According to the Consumer Dispute Resolution Standard, the warranty period of the smartphone is 2 years and the maintenance period of parts is 4 years.



[LG Electronics Service Center: Consumables for mobile phones can be purchased according to the parts retention period of existing products.

We are preparing to support OS upgrade as well.] About



3,700 people in the mobile division are relocated to affiliates, and the R&D of core mobile technologies such as next-generation TVs and robots continues.



(Video editing: Wonhee Won, VJ: Hyunwoo Park)