As of this coming July 1, LG Innotek is spinning off its system (defense) business unit, and is selling it to Nex1 Future.

The electronics components unit is aiming for the global top spot. It has so far invested 120 billion won in digital components.
It has vigorously expanded its sales in TFT-LCD modules for mobile phones, camera modules, and tuners.

LG Innotek (CEO: Hur Young-ho. www.lginnotek.com) is set to separate and sell its system unit, namely, the defense business, effective July 1.
This bid was decided by a resolution of the company’s board of directors on May 13.

Nex1 Future will take over LG Innotek’s system unit.
The unit is engaged in the business of defense, including radars, electronic warfare, and other precision technologies.

Such business diversity is very much needed to specialize in the electronics components and defense businesses, respectively.

To secure global competitiveness, the company considered it crucial to specialize in its respective businesses.

An official from LG Innotek said, "The system business unit, when spun off, would have been prepared to take a great momentum to leap forward as a defense business specialist.”

Through this business separation, LG Innotek expects to be able to concentrate its resources and capabilities in enhancing competitiveness, and to become a specialist in manufacturing sophisticated electronics components.

Thus, the company is set to invest 120 billion won in the electronics components business, breaking down to 80 billion won in facilities and 40 billion won in R&D. This strategy aims to vigorously expand sales in TFT-LCD modules for mobile phones, camera modules, and digital tuners, among other devices.

A company official said, “We will steadily increase the number of the world’s best items, such as motors for optical disk drives, tuners, and modulators, in its bid to become the world’s number one electronics components maker.”