Earlier this year, LG mobile published its Q4 2020 financial report revealing that the Mobile division capped a loss of KRW 841.20 billion ($750.63 million) for the 2020 calendar year. The company’s smartphone business has been operating in a net loss for the past six years.
With the report, LG announced that it will “closely review the direction of its mobile business” and will “share its business direction once determined”. Reportedly, the company has decided to quit the smartphone industry as soon as next week.
The Korea Times, citing industry sources, recently disclosed that the company is planning to make an official announcement next week on 5th April 2021 after the LG board meeting decides the fate of the mobile division for good.
This decision comes allegedly after LG tried to negotiate to sell off its mobile division which ultimately failed to materialize. Talking about this, an LG official commented that the company is considering several strategies for its mobile business including selling off the entire division as well as a split sale and pulling out of the smartphone business entirely.
As far as the employees are concerned, they will most likely be relocated to the home appliances division. However, since things still depend on the final board meeting, the exact fate of LG’s mobile division will be revealed next week.