LG Electronics tends to liquidate its mobile business
Initially, it was believed that LG Electronics would determine its unprofitable mobile division by the end of January. Still, April is approaching, and no official statements on this matter have yet been made. Korean media are reporting that the company would prefer to liquidate its smartphone production rather than sell it to new owners.
Bloomberg reported this information was disseminated by the South Korean publication DongA Ilbo, citing its own informed sources. Negotiations to sell the unprofitable division were held with the Vietnamese conglomerate Vingroup and the European automaker Volkswagen AG, but they were unsuccessful. Since 2015, LG’s core business losses have exceeded $ 4.5 billion, and now the company’s management sees no other option but to liquidate it.
According to Korean sources, LG has suspended work on the launch of all-new smartphones, scheduled to debut in the first half of the year. Employees of LG Electronics should be familiar with the management’s decision regarding the fate of the mobile business by early April, DongA Ilbo said.
