About 200 Planning and Management Department Employees Relocate to Paju
LG Corporation Returns 12th and 14th Floors
LG Display, which has recorded consecutive losses from the first to the third quarter this year, has relocated some departments from the LG Twin Towers in Yeouido, Seoul, to its Paju plant. This move is interpreted as an effort to reduce costs and strengthen on-site management at Paju, the company's core production base.
According to industry sources on the 18th, LG Display recently transferred about 200 employees from some planning and management departments within the LG Twin Towers to the Paju plant. The company reportedly notified these employees of the relocation plan in advance in June.
Accordingly, LG Display returned two floors, the 12th and 14th floors of the LG Twin Towers, which it had been using, to its holding company, LG Corporation. Currently, more than 6,500 employees from five companies, including LG Corporation, LG Electronics, LG Display, LG Chem, and LG CNS, work at the LG Twin Towers. LG Display had been using parts of the 6th to 14th floors.
This move is seen as a reflection of efforts to reduce costs amid ongoing losses and the on-site management approach of LG Display President Jung Cheol-dong. LG Display recorded losses exceeding 2 trillion won in 2022 and 2023 and is expected to post losses of about 500 billion won this year as well.
President Jung, who was appointed last year as a savior for LG Display, has prioritized turning a profit and strengthening financial soundness. He also emphasized the importance of on-site operations by visiting the Paju plant first. Paju is considered LG Display’s key production base.
An LG Display official explained, "Some employees were relocated sequentially to enhance work efficiency and on-site management."
Starting next year, President Jung plans to maximize production efficiency and accelerate the transition to an organic light-emitting diode (OLED)-centered business structure. In particular, LG Display is achieving results in the small- and medium-sized OLED business through expanded cooperation with Apple. According to market research firm Omdia, LG Display’s share of OLED supply for Apple smartphones increased significantly from 12.2% in the third quarter of last year to 30.3% in the third quarter of this year. The industry expects that, based on the Apple effect, LG Display has a high possibility of returning to profitability next year.
However, some employees are reportedly opposing the move to the Paju plant. An industry insider expressed concern, saying, "Most employees likely prefer commuting within an hour from Seoul, and such a measure could negatively impact talent attraction and retention."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
