LG Electronics to end loss-making smartphone business

South Korea group faced lack of in-house chip supply and rise of Chinese rivals

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South Korea's LG Electronics is throwing in the towel on its loss-making smartphone business. © Reuters

KIM JAEWON, Nikkei staff writer

SEOUL -- LG Electronics said Monday that its board decided to terminate the company's loss-making smartphone business, with analysts saying focus is now expected to shift to the more profitable home appliance and TV divisions.

LG's seven-member board of directors approved the company's suggestion to kill the handset unit, which posted more than 5 trillion won ($4.4 billion) of operating losses over the last six years.

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