In order to work around it, the report claims that the company has made a decision to suspend mobile phone production in South Korea, its home country, and, instead, shift manufacturing to its other plant, in Vietnam.
LG's latest premium phone, the G8 ThinQ. Those working at its Pyeongtaek factories will be posted to Changwon, South Gyeongsang Province. LG Electronics rolls out 38 million smartphones and feature phones a year across four countries - Korea, China, Brazil and Vietnam. The company has also seen its global market share fall to less than 3 percent. Its smartphones will be produced at its factory in Hai Phong in northern Vietnam.
Hai Phong smartphone factory
According to the electronics industry on April 24, LG Electronics has chose to relocate its production base of smartphones, which had been made in Pyeongtaek, Gyeonggi Province, to its factories in Haiphong, Vietnam, and Sao Paulo, Brazil, starting from June. This is because cost reduction has become inevitable due to rapid growth of Chinese companies and a slowdown in global smartphone markets.
The LG Electronics's smartphone business recorded a deficit for the 15th consecutive quarter until the fourth quarter of 2018. The company has relied on workforce restructuring to keep its MC division afloat, but it needed more drastic measures to deal with the loss-making unit, which is also plagued by high labor costs and less-automated plant operations.