Korean tech giant LG Electronics may well have finally decided to divest slightly from its phone business. LG’s mobile phone division raked in a yearly revenue of just $7.08 billion in 2018, incurring liabilities in excess of $700 million covering the cost of operations. The South Korea company will reportedly suspend manufacturing of its mobile phones in Korea. 
According to a report by Yonhap News Agency, the phones will instead, be produced in its existing plant in Vietnam. The report cited an unnamed source to have disclosed that LG ‘s decision to transfer its handset production to Vietnam was to help turn around the faltering smartphones division.
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LG Electronics declined to comment on the report but it looks very likely LG is trimming down its mobile phone business. The business has been experiencing annual downturns for the past seven quarters. LG presently has production bases for smartphones in South Korea, China, Vietnam, Brazil and India. We can’t say why the Korean plant was being shut but the factory mainly manufactures high-end model. This accounts for just 10% to 20% of the firm’s total smartphone output. It is possible the Vietnam plant can combine the production of the flagship models to other mid-range and budget models.
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