Seoul
South Korea’s LG Electronics said on Wednesday it was considering all options for its loss-making mobile division, which analysts said could include shutting its smart phone business or selling off parts of the unit.
LG said in a statement that 23 consecutive quarters of losses in its mobile business had totalled around 5 trillion won ($4.5b) amid stiff competition.
Shares in LG closed up 12.8%, against a rise of 0.7% in the broader KOSPI index. “In the global market, competition in the mobile business including smartphones has gotten fiercer,” LG said in the clearest sign yet that it could be considering a winding down of the troubled business.
“LG Electronics believes we have reached the point where we need to make the best decision about our mobile phone business, considering current and future competitiveness.”—Reuters
