LG Electronics withdraws from EV charging business due to economic downturn and sluggish EV sales in South Korea

LG Electronics is terminating its electric vehicle (EV) charger business under its Eco Solution (ES) Business Division. The company explained the reason for this as "changes in the business environment, including slow market growth and intensifying price competition."
The company explained that it will adjust the balance of its management in response to the situation. The employees in charge of the EV charger business under the ES Business Headquarters will be reassigned to a different business organization within LG Electronics.
The subsidiary, HiEV Charger, which is responsible for the EV charger business, will be liquidated. The company plans to then provide maintenance services to its EV charger suppliers.
LG Electronics acquired Apple Mango (now Hi EV Charger) in 2022 and entered the EV charging market. It plans to develop products targeting high-growth markets such as Europe, the US and Asia.
The company planned to expand its business by selling electric vehicles and cooperating with local charging companies. However, the global economic downturn and sluggish EV sales have started to hit the company's business.
In 2024, the company will record an operating loss of 7.2 billion won (approximately 702.17 million yen). This is the second consecutive year of large losses. Going forward, the ES Business Division will focus on home appliance and industrial ES products through a selection and concentration strategy.
The company plans to focus on its HVAC (air conditioning systems) business, including air conditioners, chillers, heat pumps, and cooling solutions for data centers.