LG Electronics Likely to Withdraw from Smartphones, Company Atmosphere Relatively Calm

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] As LG Electronics announced that it will conduct a comprehensive review of its future business direction, including the sale of its smartphone business, the internal atmosphere on the 21st was relatively calm.

After Kwon Bong-seok, CEO of LG Electronics, officially stated the day before regarding rumors of withdrawing from the mobile business, "We are keeping all possibilities open and carefully reviewing the direction of business operations," many believe this has quelled various speculations about the mobile business so far.

An LG Electronics employee said, "When rumors of sale and withdrawal circulated, it was true that internally everyone was tense and somewhat skeptical, and in some cases, there was even a divisive atmosphere. Amid that, with the CEO stepping forward and saying 'We are indeed considering it,' the atmosphere has rather become reassuring," he said.

Above all, there is a positive evaluation in terms of alleviating concerns about employment to some extent. Another employee said, "Since there have been many rumors and articles, words bred more words, and various rumors caused employees to be unsettled. The CEO personally assuring the commitment to maintaining employment actually brings reassurance," he said. Earlier, CEO Kwon emphasized, "Regardless of how the business operation direction is decided, in principle, the employment of members will be maintained, so there is no need to worry."

Although uncertainty has been somewhat resolved, it cannot be said that employees' anxiety has completely disappeared. If the business division is officially wound down in the future, a certain level of internal restructuring and organizational reorganization will be inevitable. Another employee stated, "It will probably be difficult to lay off employees, so employment will be maintained, but they may be transferred to other affiliates or departments within the company, and if a sale occurs, they might move to the acquiring company, so various situations could arise," he explained.