The Korean newspaper: The agreement to buy back the mobile segment between LG and Vingroup has collapsed.

LG Electronics’ recent attempt to sell mobile phone factories to Vingroup failed as the Vietnamese conglomerate’s offer was lower than expected by the Korean tech company, a senior industry official. said today, according to the Korea Times.

“LG has been negotiating with Vingroup to sell its smartphone manufacturing facilities in Vietnam and Brazil, but discussions have recently collapsed due to a failure to agree on transfer prices.” This official said.

LG Electronics’ factory in Hai Phong, Vietnam

As the business has been in a constant deficit in recent years, LG has sold its mobile phone business to focus on other areas such as electric vehicle (EV) components. After LG’s announcement, Vingroup is considered “the right candidate” to reach an agreement, in the context of a Vietnamese corporation looking to expand into high-tech industries.

However, the official said there would be no further talks with Vingroup. Instead, LG will seek another buyer.

“With Vingroup offering lower than expected prices, LG will turn to find other buyers. In addition, the company’s smartphone production lines overseas, such as in Vietnam and Brazil, can be converted to production.” home appliances, “he added.

In this regard, the representative of LG Electronics reiterated that the company “is leaving all possibilities open to the mobile phone business.”

According to KoreaTimes, LG Electronics started to rekindle 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 its operating structure. by LG.

LG Electronics is also said to have abandoned plans to launch a roll-screen smartphone, which was introduced at the CES 2021 event in January.

According to information posted by local media, LG has been talking to its component suppliers – including its Chinese display maker BOE – to halt development of its smartphone project. can scroll the screen. Initially, LG intended to attract users’ attention with a smartphone that could roll into a small tablet within seconds.

LG Electronics has made repeated efforts to revive the unprofitable business by rearranging its product lines, accelerating hiring outside manufacturing partners, and releasing smartphones with designs. different.

Even so, LG’s mobile phone business has suffered losses for 24 consecutive quarters since 2015, totaling 5 trillion won ($ 4.5 billion).

While the Korean tech firm is struggling with the smartphone business, LG has been gradually expanding its presence in emerging areas such as electric vehicles and car components. Last December, the company announced it was establishing a joint venture with auto parts maker Magna International to produce electric motors.

Refer to Korea Times