[LG Phone Withdrawal] What About After-Sales Service for Smartphones Bought Last Year? What About Trade-In for Used Phones?

Company States "Will Ensure Sufficient Period"

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] As LG Electronics announced that it will withdraw from the mobile phone business as of July 31, concerns among LG smartphone customers are growing. This is because there is a possibility that they may not receive benefits from after-sales service (AS) or the used phone compensation program. The company stated that it plans to provide AS for a 'sufficient' period but did not specify a concrete deadline.

On the 5th, LG Electronics officially confirmed the end of production and sales of its MC Business Division, which handles the smartphone business, stating, "Even after the business ends, we plan to continue providing sufficient AS so that purchasing customers and existing users do not experience inconvenience."

The announcement did not specify a detailed period. Since the typical usage period after purchasing a smartphone is two years, it is expected that the product AS period will be set to exceed this duration. Currently, LG Electronics provides AS for home appliances such as TVs through an integrated center, in addition to smartphones.

Specifically, depending on the progress of consultations between LG Electronics and its parts suppliers, the scope and duration of AS provided may vary by device model. This is because smartphones are a combination of various components such as camera lenses, displays, and modules.

However, concerns continue to arise on online communities that AS might be discontinued for consumers who purchased the latest products such as the LG Velvet and LG Wing. Complaints have already been raised, such as "LG smartphone AS is being delayed due to lack of parts."

Relief measures related to the used phone compensation program are also expected to be announced soon. The used phone price guarantee program allows consumers to return a smartphone used for 24 months and exchange it for a premium device from the same manufacturer at up to 50% off. Prices vary by carrier and model, ranging from 3,300 KRW to 7,700 KRW per month.

A telecommunications company official explained, "We are discussing relief measures for used phone compensation program subscribers with the warranty insurance company and LG Electronics." The industry expects that providing devices from other manufacturers such as Samsung Electronics may be possible.

LG Electronics, which has officially confirmed its withdrawal, plans to continue producing smartphones until the end of May. However, it is predicted that not only the used prices of existing LG phones but also the latest smartphones will effectively become zero-won phones as part of inventory clearance.

Meanwhile, LG Electronics announced through a board resolution on the same day that it will cease operations of the Mobile Communications (MC) Business Division, which operates the smartphone business. The MC Business Division's sales amounted to 5.2171 trillion KRW in 2020, accounting for 8.2% of the company's total sales.

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