LG Electronics reallocates 3,300 smartphone personnel to strengthen AI and automotive future businesses

Largest Movement in Home Appliances Part
Minimal Resistance and Noise Despite Large-Scale Relocation

LG Twin Towers in Yeouido, Seoul, where LG Electronics headquarters is located / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Heung-soon] LG Electronics has decided to withdraw its Mobile Communications (MC) Business Division, which was responsible for the smartphone business, as of the 31st of this month. Approximately 3,300 employees belonging to this division have been reassigned to other business divisions within LG Electronics and LG Group affiliates. It has been identified that a significant number of these employees have moved to future business sectors such as artificial intelligence (AI) and automotive components, which have been emphasized since the inauguration of LG Group Chairman Koo Kwang-mo, as well as the core home appliance division.

According to LG Electronics on the 15th, employees formerly belonging to the MC Business Division have completed their transfers to new departments or affiliates and have been assigned to new tasks. Of the 3,300 employees, more than 80%, approximately 2,700, have moved to other business divisions within LG Electronics.

An LG Electronics official stated, "Although we cannot disclose the exact number, the largest number of employees transferred to the Home Appliance & Air Solution (H&A) division among all business divisions." The H&A Business Division is considered the hub of LG Electronics and is known to be the most preferred. In the provisional results for the second quarter of this year, LG Electronics recorded sales in the mid-6 trillion won range, the highest ever for the second quarter, partly due to increased sales of the space interior appliance 'Objet Collection.'

It is also notable that about 800 employees moved to the Chief Technology Office (CTO) division, which researches LG Electronics' future businesses. This division is the 'brain' organization that researches promising fields such as AI, robotics, and quantum computing and designs related products. It will also be responsible for customer after-sales service, which LG Electronics has promised to support for four years following the smartphone business withdrawal.

In addition, many employees have been positioned in the Vehicle Components (VS) Business Division, which LG Electronics expects to return to profitability in the second half of this year. The newly launched electric vehicle powertrain joint venture 'LG Magna e-Powertrain,' established on the 1st of this month, welcomed 50 employees from the MC Business Division as new members. Since Chairman Koo Kwang-mo designated AI, robotics, and automotive components as future businesses after his inauguration in 2018, employees facing reassignment have shown great interest in these divisions.

About 600 employees were assigned to LG Group affiliates. Approximately half of them, around 300, joined LG Energy Solution, which was spun off from LG Chem at the end of last year, as research personnel and others. Earlier, LG Energy Solution presented a blueprint at the 'K-Battery Development Strategy Report Meeting' held on the 8th, announcing plans to invest more than 15 trillion won domestically over ten years to nurture battery technology and personnel, demonstrating confidence in growth. The remaining 300 employees were assigned to LG Uplus, LG Display, LG Innotek, LX Semicon (formerly Silicon Works), and others.

When reallocating MC Business Division personnel, LG Electronics conducted an official recruitment process similar to that for experienced hires. For general office workers, to reflect employees' job competencies and personal preferences as much as possible, they were allowed to apply for up to six preferred job positions. Treatment remains the same as before.

In the business community, attention is being paid to the fact that there was almost no resistance or noise from employees during the large-scale reassignment of over 3,000 personnel. An LG Electronics official said, "Cases of resignation during the personnel reassignment process were extremely rare," and added, "We expect this business restructuring and personnel reassignment to help strengthen the capabilities of core and future businesses."

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