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LG Electronics showed the possibility of withdrawing the smartphone business, which has been in the red for many years.
He said he would open all the possibilities, including the sale, but the background is drawing attention.
This is Lee Sung-hoon.
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LG Electronics recently unveiled a rollable phone video at CES.
It was evaluated as demonstrating its willingness to find a new growth engine with the world's first rollable phone innovation.
However, in less than ten days, LG Electronics showed the possibility that it could withdraw from the smartphone business.
LG Electronics said, "We have reached the point where we have to make the best choice regarding the mobile business. We are carefully reviewing the business operation plan with all possibilities open."
LG Electronics' mobile division recorded an operating deficit for six consecutive years, with a cumulative operating loss of 5 trillion won by the end of last year.
In the 2010s, it showed prominence in feature phones such as chocolate phones, but it was a frenzy that entered the smartphone market later than competitors.
With the launch of the first flagship smartphone in 2012, the premium phone market fell behind Apple and Samsung Electronics, while the mid- to low-end phone market was behind Chinese makers, with a market share of only 2%.
In order to reduce costs, the factory moved to Vietnam in 2019, and new products were released steadily, but the performance did not improve.
First of all, LG Electronics has opened up all possibilities such as sale and reduction.
[Lee Wang-jin / Researcher at Ebest Investment & Securities: It seems like a difficult plan for smartphone makers to buy, and LG Electronics clearly has regrets about this division, so this is an extreme method...
.]
LG Electronics' share price soared nearly 13% due to the possibility of a restructuring of the business division, which had negatively affected overall profits due to continued massive deficits.
(Video editing: Hwang Ji-young)