The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Business
  • Tech
  • Bio
  • Companies
Thu, May 26, 2022 | 20:56
Tech
[EXCLUSIVE] LG Electronics-Vingroup mobile talk collapses
Posted : 2021-02-22 16:27
Updated : 2021-02-23 09:14
Print Preview
Font Size Up
Font Size Down
LG Electronics' new smartphone with a rollable display is introduced during a press conference at the CES 2021, Jan. 11. Courtesy of LG Electronics
LG Electronics' new smartphone with a rollable display is introduced during a press conference at the CES 2021, Jan. 11. Courtesy of LG Electronics

By Baek Byung-yeul

LG Electronics' recent attempt to sell its mobile phone factories to Vingroup has fallen through as the Vietnamese conglomerate's offer was lower than that wanted by the Korean tech company, a high-ranking industry official familiar with the matter said Monday.

"LG had been negotiating with Vingroup to sell its smartphone-manufacturing facilities in Vietnam and Brazil, however, the discussions recently collapsed mostly due to the price difference," the official said.

Due to mounting deficits in recent years, LG put its mobile phone business up for sale to concentrate on other areas such as electric vehicle (EV) components. Following the LG announcement, Vingroup was mentioned as the "right bidder" in possibly striking a deal, as the largest listed firm in Vietnam has been seeking to expand into high-tech industries.

The official said there would be no more negotiations with Vingroup, and LG would seek a new buyer.

"With Vingroup offering a lower price than expected, LG will move on to find another buyer. Also, the company's smartphone production lines overseas such as in Vietnam and Brazil can be realigned to manufacture home appliances," he added.

However, LG Electronics has not abandoned its plan to sell off the plants while keeping hold of its intellectual property in mobile technology and product design. To minimize the impact caused by organizational restructuring, employees working for its smartphone unit will be reallocated to other departments, the official noted.

LG Electronics' new smartphone with a rollable display is introduced during a press conference at the CES 2021, Jan. 11. Courtesy of LG Electronics
LG Electronics' factory in Haiphong, Vietnam / Courtesy of LG Electronics

With regard to the issue, an LG Electronics representative reiterated that the company "is leaving all possibilities open for the mobile business."

LG Electronics began signaling its intention to withdraw from the mobile phone business a month ago after CEO Kwon Bong-seok said there would be a significant change in operations. The company also reportedly scrapped its plan to release a "rollable" smartphone, which the company introduced at the latest Consumer Electronics Show in January.

A local media outlet reported that LG had apparently told its parts suppliers ― including Chinese display maker BOE ― to put the development of the rollable smartphone project on hold. The company originally planned to attract consumers' attention with the rollable phone that can go from a smartphone to small-sized tablet within seconds.

Regarding this device, the representative added "there's nothing to comment about on the issue."

LG Electronics has made repeated efforts to revive the money-losing business by reorganizing its product lineups, rapidly increasing outsourcing, and releasing smartphones with different form factors.

Nevertheless, the mobile communications business has suffered operating losses for 24 consecutive quarters since 2015, amounting to an aggregate 5 trillion won ($4.5 billion).

While the company has been struggling with its smartphone business, LG has been gradually expanding its presence in emerging sectors such as EV and vehicle component categories. Last December, the company announced the establishment of a joint venture with automotive parts maker Magna International to manufacture electric motors.


Emailbaekby@koreatimes.co.kr Article ListMore articles by this reporter
 
  • Gunman kills 18 children at Texas elementary school
  • Korea to allow visa waiver at Yangyang airport for int'l travelers from 4 countries
  • Over 76% of Koreans support legalizing euthanasia
  • Will government establish new immigration agency?
  • North Korea launches missiles to test Seoul-Washington deterrence
  • N. Korea fires 3 ballistic missiles, including 1 suspected ICBM: JCS
  • [INTERVIEW] Defender of inter-country adoptees' rights
  • Japan's unwelcome move
  • Auditing firms compete to secure rookie accountants
  • US forces anger animal rights group for brutally executing stray cats with air gun
  • Former GFriend member Yuju sings on track for drama 'Kiss Sixth Sense' Former GFriend member Yuju sings on track for drama 'Kiss Sixth Sense'
  • 'The Witch: Part 2' director still has more story to tell 'The Witch: Part 2' director still has more story to tell
  • Tim Burton's iconic world of misunderstood misfits returns to Korea Tim Burton's iconic world of misunderstood misfits returns to Korea
  • Park Chan-wook returns to Cannes with romance 'Decision to Leave' Park Chan-wook returns to Cannes with romance 'Decision to Leave'
  • BLACKPINK on cover of Rolling Stone BLACKPINK on cover of Rolling Stone
DARKROOM
  • 75th Cannes Film Festival

    75th Cannes Film Festival

  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group