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LG Electronics says its money-losing mobile biz open to 'every possibility'

All News 15:34 January 20, 2021

SEOUL, Jan. 20 (Yonhap) -- LG Electronics Inc., the country's major home appliance maker, said Wednesday its mobile business is open to "every possibility" amid rumors that the South Korean tech giant may sell its money-losing unit.

LG said the company has come to a point where it needs to make the best decision for its mobile communications (MC) business unit.

"In the global market, the competition is getting fierce in the mobile business which includes smartphones," LG said. "We are open to every possibility at this moment and are thoroughly reviewing our future plans."

In an email sent to employees, LG Electronics CEO Brian Kwon said those in the company's mobile business will keep their jobs regardless of the business unit's fate.

LG's mobile business has been in the red since the second quarter of 2015. Its accumulated operating loss has reached around 5 trillion won (US$4.5 billion) as of last year.

LG has been trying to improve its mobile business in recent years by adjusting its product portfolio and expanding original development manufacturing (ODM) deals.

To boost premium smartphone sales, it launched the Explorer Project, the company's new mobile category that aims to deliver devices with a different form factor and upgraded mobile experience, last year and released the Wing, a dual-screen smartphone with a rotating form factor.

LG was also scheduled to launch a smartphone with a rollable OLED display later this year.

This file photo, provided by LG Electronics Inc. on Oct. 16, 2020, shows a model holding the company's dual-screen smartphone, the Wing. (PHOTO NOT FOR SALE) (Yonhap)

kdon@yna.co.kr
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