LG Electronics has launched an organizational realignment by creating two business units under Mobile Communications in hopes to apply the expertise of its lucrative TV business on its still-struggling smartphone division.

The company announced on Tuesday that two new organizations -- Handset BU and Exploratory Product Planning FD -- were established within the MC organization, while the former will absorb the current PMO unit responsible for product planning and development covering both premium and low- and medium-end products.

Exploratory Product Planning FD will focus on discovering game-changing business items.

The PMO unit was introduced last July, with two heads appointed to lead G Series and V Series development separately. But this binary operations will be unified under the leadership of Hwang Jung-hwan, executive director of LG Electronics (former HE research head), who will lead the new Handset BU.

LG Electronics said it expects the appointment of Hwang to help share success stories in OLED TV and other TV applications with mobile business.

The company also upgraded the status of its purchasing unit to a purchasing group to be headed by Oh Hyung-hoon, executive director who supervised the development of the LG G6.

It also put IPD BD previously directed by its chief executive under the control of MC and renamed it into Companion Device BD in order to strengthen a link between mobile and accessory business and diversify its business portfolio.

By Seo Dong-cheol

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