LG intends to close production of smartphones due to losses. This is reported by the Korea Herald, which received a copy of an internal letter from the head of the company Kwon Bong-Seok.

According to reporters, the CEO of LG Electronics on Wednesday, January 20, sent a message to employees in which he warned that the corporation intends to withdraw from the smartphone market. “Since the market is too competitive, it's time for LG to make a sober decision and a better choice,” said Kwon Bong-Suk.

The head of the corporation explained that three options for the development of events are being considered – a reduction in the pace of development and production of smartphones, the sale of a mobile business or its final closure. The entrepreneur said that employees should not worry about the possible closure of the company, as all specialists will retain their jobs, regardless of the outcome.

According to experts, over the past five years, LG's mobile division has lost about 5 billion won, or about 4.5 billion dollars. Sources said that in the event of the closure, 60 percent of the staff will be transferred to other departments of the company and firms with which LG works.

The journalists noted that the statement about the possible closure of the mobile business looks strange against the background of the company's active work on new smartphones. In particular, at the last CES 2021, LG presented a concept for a device with a retractable screen. This device was created as part of the Explorer Project research direction, like the Wing device, which has two screens.