LG may shut down smartphone unit instead of selling it

PHOTO: Reuters

LG may be forced to shut down its smartphone business if talks with potential buyers fail.

The Korean Herald reports that LG may shut down the smartphone business instead of selling it. A source claimed that LG had discussions with several parties over a potential sale, but they were not making much progress. Industry analysts believe LG may opt to quit the smartphone business if there is no interested buyer.

LG CEO Kown Bong-seok sent an internal memo to employees in January informing them that it is time for the company "to make a cold judgement and the best choice". In addition, he shared that the company "is considering all possible measures, including sale, withdrawal and downsizing of the smartphone business". Its upcoming flagship is also reportedly put on hold.

This article was first published in Hardware Zone.