Despite the fact that LG is one of the largest companies on the mobile market, mobile segment of the company has notoriously recorded financial losses for many quarters. A significant problem is noted by company in segment of cheaper devices. For 7 quarters, the mobile department has brought losses to LG, so it is natural that the company takes measures to improve the financial balance in this department. That's why the production line of smartphones will undergo a restructuring, which will in practice result in closing of factories in South Korea.
LG came to the conclusion that maintaining factories in this country is financially unprofitable. Until now, the production line in this country was the main center of production of the company's flagship devices. From now on, after implementing planned changes, centers responsible for the production of the same devices will be created in Vietnam, mainly due to low wages for suitably qualified employees. People who so far have worked in units of LG located in South Korea will be transferred to other LG branches in the same country.