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LG shifts smartphone production from South Korea to Vietnam

Company tries to stem 4 years of red ink by moving production to low-wage country

A visitor uses a mobile phone in front of the LG booth at the Mobile World Congress in Barcelona, Spain.   © Reuters

SEOUL/HO CHI MINH CITY -- LG Electronics will halt smartphone production in South Korea, putting the future of the second-tier smartphone brand in question amid a shrinking market and heated competition from Chinese companies.

The electronics maker known for its latest bendable screen said Thursday it plans to move its high-end smartphone production from a plant in Pyeongtaek, on the outskirts of Seoul, to a factory in Hai Phong, in northern Vietnam. This is aimed at turning around its loss-making smartphone unit.

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