[LG Phone Withdrawal] LG Electronics Begins Survey on Reassignment of 3,700 Employees

After the Board Resolution on the 5th
Lee Yeon-mo, Vice President and Head of MC Business Division
Conducted an Internal Briefing for All Employees
Also Conveyed the Meaning of 'Sorry'

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 officially announced on the 5th its withdrawal from the smartphone business and has begun a demand survey for the redeployment of approximately 3,700 employees in the Mobile Communications (MC) Business Division.

Lee Yeon-mo, Vice President and Head of the MC Business Division at LG Electronics, reportedly expressed his personal apology during an internal briefing for employees following the board resolution, explaining the background of the business termination and the upcoming redeployment schedule.

Starting immediately, LG Electronics plans to enter the personnel redeployment process through individual preference surveys and demand surveys from business units and affiliates. The company aims to complete redeployment within the group and business divisions by the end of June, beginning with a call for employees to transfer to LG Energy Solution.

High demand is expected from affiliates such as the home appliance factory and research center in Changwon, Gyeongnam, the Vehicle Components (VS) Business Division, the joint venture with Magna, LG Energy Solution, and LG Display. LG Electronics will continue research and development in core mobile technologies, so some personnel may be redeployed to secure foundational 6G technologies.

LG Electronics stated, "Core mobile technologies such as 6G mobile communication, cameras, and software are essential capabilities for next-generation TVs, home appliances, automotive components, and robots, so research and development will continue centered on the CTO division." They added, "Through this, we will prepare for the era of the Internet of Everything intelligence, where autonomous driving as well as people, objects, and spaces are closely and organically connected."

LG Electronics' overseas smartphone factories are expected to be repurposed. The company has factories in Vietnam, Brazil, and India, with most facilities concentrated in Vietnam. Previously, in 2019, LG Electronics ceased operations at its Pyeongtaek factory, which handled domestic smartphone production, and relocated production bases overseas.

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