We had recently reported on Apple seeking to sell its iPhones and other products from LG stores in South Korea. But now, it seems that the latter is facing backlash in the country from local smartphone distributors over market competition.
According to TheKoreaHerald report, the South Korean tech giant is facing backlash from local distributors and a private consensus based panel on shared growth, which stated that LG would be breaking its ‘word’ if it goes ahead with the new plan. Furthermore, the Korea Commission for Corporate Partnership added that the company’s pact with the commission in signed in 2019 that had LG would work to achieve co-prosperity with smaller firms in the industry.
The company had just recently announced that it would be shutting down its smartphone unit. It was also reportedly planning on selling iPhones and other Apple products from its official retail stores in South Korea. But this plan has brought up criticism from the Korea Mobile Distributor Association as well, which is an agency that represents interests of domestic phone distributors.
Now, the organization has sent a letter to the Korea Commission Corporate Partnership and has asked the body to intervene. Back in 2018, LG Electronics and Samsung Electronics had agreed to limit the sale of smartphones from their stores to the ones of their own brand, to prevent competition with smaller phone distributors. An official from the commission added that “LG’s withdrawal of the smartphone business has become an unexpected change to consider. Both sides will need to coordinate and come up with a new agreement on the issue.”
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