Seoul: LG Electronics Inc. announced its decision to exit the electric vehicle (EV) charger business, attributing the move to prolonged global demand stagnation in the EV market. The company will liquidate its EV charger-manufacturing subsidiary, HiEV Charger, and reassign all employees involved in the business to other divisions within LG Electronics. Despite the exit, LG has assured that maintenance services for existing clients will continue without disruption.

According to Yonhap News Agency, LG entered the EV charging market in 2022 by acquiring HiEV Charger, formerly known as AppleMango, after initiating research and development in the segment in 2018. The company offered charging solutions in South Korea, including chargers at Emart retail stores, and expanded into the U.S. market last year, with a production plant set to open in Texas in January 2024.

The decision to withdraw comes as LG Electronics aims to refocus its efforts on prioritizing growth in its heating, ventilation, and air conditioning (HVAC) business. LG Electronics CEO Cho Joo-wan had previously identified the EV charger business as a key growth driver in the company's vision to achieve 100 trillion won (US$70.1 billion) in sales by 2030.