"The decision was approved by its board of directors earlier today," the Monday statement says, adding that "LG’s strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions, as well as platforms and services."

The company specified that the current LG phone inventory will continue to be available for sale, but the mobile phone business is expected to fully wind down by July 31.

"LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region. LG will work collaboratively with suppliers and business partners throughout the closure of the mobile phone business. Details related to employment will be determined at the local level," the company said.

LG’s smartphone division has been suffering major losses over the past five years and the company’s potential closure of the sector has been rumored for several months.

In January, LG said it was planning to make its mobile division profitable in 2021 and was considering expanding its mobile lineup.