By default, new contacts are stored in your Google Account, not on the LG smartphone's memory when you're signed in. Unfortunately, the LG does not allow you to change the default location for all new contacts, and you must select it each time you create a new contact.

Also, as shown in this guide, the location of an existing contact can be changed, in which case the contact will be moved.

Android 9 | LG UX 9.0
Step 1:  Open the  Contacts -App
Step 2:  Tap on desired  Contact
Step 3:  Tap on  Edit
Step 4:  Tap on current  Location
Step 5:  Choose desired  Location
Step 6:  Confirm with  Save
  1. Open the Contacts-App
  2. Tap on desired Contact
  3. Tap on Edit
  4. Tap on current Location
  5. Choose desired Location
  6. Confirm with Save

LG Instructions