LG Group to close non-core businesses by year‘s end
LG Group, Korea's fourth-largest family-run conglomerate, is expected to spin-off or close down seven affiliates this year to better focus on its core business areas, industry sources said Friday.
LG's plans call for reducing the number of affiliates within the conglomerate to 57 from the current 64, they said.
The plan reverses decades of steady expansion pursued by the conglomerate to expand its business sphere, a strategy which has drawn fire from critics for encroaching into areas fit for smaller companies. Such actions have also affected LG's ability to focus its attention on key growth sectors.
Sources said Pixdix, an offline digital camera retailer, and two wine distribution companies belonging to LG International Corp. will be sold or closed by year's end.
They added a cosmetics retailer and trading company belonging to LG Household and Health Care Ltd. will be merged or put up for sale.
The group's marketing and communication operator GIIR plans to cut the size of its affiliates by two to improve overall efficiency.
"Most firms that will be removed from LG's corporate lineup have either lost money or are not directly related to the group's core businesses centered on electronics, telecommunications, chemicals, life science and renewable energy areas," a source said.
LG said that the restructuring measures are aimed at allowing the group to focus on key business areas and reduce losses from non-performing companies. (Yonhap)