LG Electronics Approves Spin-off of Electric Vehicle Powertrain Division... Magna Joint Venture to Launch in July

LG Electronics 19th Annual General Meeting of Shareholders Scene

[Asia Economy Reporter Kim Heung-soon] The joint venture established by LG Electronics and Magna International, the world's third-largest automotive parts manufacturer, to strengthen its future-oriented automotive components business, is set to officially launch this July.

On the 24th, LG Electronics held its 19th regular shareholders' meeting at the LG Twin Towers in Yeouido, Seoul, and approved the physical division of the electric vehicle powertrain-related business within the VS Business Division, which is responsible for automotive components.

Through the physical division, LG Electronics, the dividing company, will hold 100% of the shares of the newly established company, tentatively named 'LG Magna e-Powertrain.' Magna is expected to acquire 49% of the shares of the newly established company. The joint venture will officially launch in July.

Earlier, to bolster its automotive components business, LG Electronics held an extraordinary board meeting at the end of last year and decided to establish a joint venture with Magna International in the electric vehicle powertrain sector. On the 15th, LG also launched 'Aluto,' a joint venture related to the vehicle infotainment platform business with Luxoft, a global software company headquartered in Switzerland, and in 2018, it acquired ZKW, an Austrian vehicle headlamp manufacturer, laying the foundation for its automotive components business.

LG Electronics aims to turn the VS Business Division profitable this year. With the joint venture's launch confirmed, the company expects to respond swiftly to the rapidly growing electric vehicle market.

At the shareholders' meeting, other major resolutions such as approval of financial statements, amendments to the articles of incorporation, appointment of directors, appointment of directors to the audit committee, and approval of director remuneration limits were all passed as originally proposed. Among the director appointments, Professor Kang Soo-jin of Korea University Law School was appointed as the first female outside director. Vice President Bae Doo-yong, LG Electronics' Chief Financial Officer (CFO), was reappointed as an inside director.

Meanwhile, regarding the much-anticipated withdrawal from the smartphone business, no specific stance was announced. Vice President Bae, who chaired the shareholders' meeting, explained about the operation plan of the MC Business Division, which handles smartphones, stating, "The MC Business Division is keeping all possibilities open and is thoroughly reviewing business operation plans. We are considering various options based on current and future competitiveness."

This content was produced with the assistance of AI translation services.