LG has been struggling in the smartphone segment for quite some time. However, with the arrival of its LG Velvet 5G lineup and the recently released LG Wing, the company seems to be getting on track. Of course, it still miles behind the competition, but for the first time in years, the company’s Q3 2020 have shown signs of recovery. The company seems to be preparing a set of new devices for the next year like a new LG Rainbow flagship that will replace the old V-series and the LG B Project, a device with a rollable display. According to a new report, LG Corporation has announced that it will spinout some of its affiliates to a new holding company next year. The decision regarding restructuring the company comes at a time when conglomerates are only growing in size.
According to a report from Reuters, upon further inspection of regulatory filings, it was discovered that some LG affiliates will be spun-off in May 2021. The existing holding firm of the affiliates is LG Corp and it will assets worth around $8.85 trillion, or 9.8 trillion Won. However, the report states that the new holding firm will have assets worth 900 billion won.
The company will spin out the following firms:
- LG International Corp
- LG Hausys Ltd
- Silicon Works Co Ltd
- LG MMA Corp.
- unlisted Pantos Logistics Co Ltd
Currently, the affiliates of LG Corp are operating in various business segments. For instance, we have companies operating in the batteries and display segments. Others are working in automobiles related products, or household products, and even cosmetics. These businesses have important partners in various segments such as General Motors, Tesla, and even Apple. With the restructuring, LG Corporation will concentrate some of its core-business: Consumer Electronics, Chemicals, Telecommunication & Services.
The report further states that at the head of the new holding company, the company will place Koo Bon-Joon. He is one of the LG Founder’s sons and a nephew of Koo Kwang-mo. The latter currently sits as the company’s chairman. LG sits as one of the largest conglomerates in South-Korea that is still is controlled by an owner or family.
For those unaware, LG operations started in 1947 thanks to Koo In-Hwoi. He started Lucky Chemical and just expanded it into a big conglomerate. While LG isn’t the most notable smartphone maker in the current scene, the company still sits as one of the most reliable tech providers in the world acting in multiple segments.