LG Electronics to shut South Korea phone plant, move production to Vietnam

LG Electronics Inc said on Thursday it would stop producing smartphones in South Korea and move manufacturing to Vietnam, joining global rivals in reorganising production as they battle a slump in global demand.

The restructuring of its money-losing business comes as LG, once one of the world’s top three mobile phone makers, has seen its global market share spiralling to less than 3% in the decade that smartphones came to dominate the mobile market.

“I find its decision positive,” said analyst John Park at Daishin Securities.

“Their existence may be barely noticeable in the global smartphone market, but they have solid presence in the U.S. market. It’s too early for them to close the whole business when fifth generation (5G) networks are starting,” Park said.