In a statement on Monday, LG said it has chosen to focus resources on growth areas like electric vehicle components, connected devices, smart homes and robotics.
It assured customers that it will provide service support and software updates for existing mobile phone users “for a period of time which will vary by region”.
“LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services, ” the statement read.
“Moving forward, LG will continue to leverage its mobile expertise and develop mobility-related technologies such as 6G to help further strengthen competitiveness in other business areas.
“Core technologies developed during the two decades of LG’s mobile business operations will also be retained and applied to existing and future products.”
The company said details regarding staff employment will be determined at the local level.
According to the company, the complete shutdown of the mobile phone business will be completed by July 31.
However, some of its phones may still be available for purchase after that date.
The smartphone business has been reporting operating losses since 2016; estimated at $4.5 billion.