LG's decision to pull out of smartphone business could be announced on 5 Apr

LG's decision to pull out of smartphone business could be announced on 5 Apr

LG has decided to pull out of the smartphone business according to The Korea Times.

Industy sources claim the South Korean company recently decided to pull out of the smartphone business  after failing to reach agreement with several interested buyers which include Vietnam's Vingroup. The Korea Herald reported more than a week ago that not much progress had been made with potential parties. LG is believed to be making an official announcement at its board meeting on 5 April.

An LG Electronics official said there is nothing to comment on and "every possibility is open". He added that the specific direction of the mobile communication business will be announced.

In January this year, LG CEO Kwong Bong-seok sent an internal memo to employees informing them of the need "to make a cold judgement and the best choice" for the smartphone business. The company was considering all possible measures, including sale, withdrawal and downsizing of the smartphone business.  Its upcoming flagship phone is also reportedly put on hold.

Source: The Korea Times