LG Electronics to Exit Mobile Phone Business After 26 Years... Withdrawal on July 31 (Update)

Resolution of the Board Meeting on the 5th

The LG Twin Towers in Yeouido, Seoul, where LG Electronics' headquarters is located, on the 2nd, as LG Electronics' exit from the smartphone business approaches. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Cha Min-young] LG Electronics will end its mobile phone business, which it has led for 26 years since 1995, as of July 31.

On the 5th, LG Electronics announced through a board resolution that it will cease operations of its Mobile Communications (MC) division, which operates the smartphone business. The MC division's sales amounted to 5.2171 trillion KRW in 2020, accounting for 8.2% of the company's total sales.

The company stated, "The reasons are intensified competition in the mobile phone business and continuous business underperformance," adding, "We will focus our capabilities on core businesses through efficient allocation of internal resources and improve the business structure." Accordingly, the company plans to improve its overall business portfolio.

It also anticipated, "Although there may be a short-term decrease in total sales due to the termination of the MC business, mid- to long-term effects are expected in improving the business structure and financial condition."

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