[Asia Economy Reporter Kim Heung-soon] "Regardless of how the business operation direction is decided, the employment of members will be maintained in principle, so there is no need to worry."
On the 20th, Kwon Bong-seok, President of LG Electronics, expressed this position to the members of the MC Business Division via email regarding the business operation of the division. This was in consideration of the fact that various options, including the sale of the mobile business, which has recorded losses for 23 consecutive quarters, are being reviewed.
LG Electronics explained in a press release on the same day, "We believe it has come to a point where we must make the best choice by coldly assessing the current and future competitiveness of the mobile business," adding, "We are thoroughly reviewing the business operation direction with all possibilities open." They also added, "Once the business operation direction is decided, we plan to share it transparently and promptly with the members."
To improve the business structure of the MC Business Division, LG Electronics has recently promoted resource operation efficiency through product portfolio improvements, adjustments of global production sites, and the launch of innovative products. However, it has continued to record operating losses for 23 consecutive quarters since the second quarter of 2015. The cumulative operating loss until the end of last year amounts to approximately 5 trillion won.
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