LG Electronics to suspend mobile phone production in South Korea

South Korea’s LG Electronics plans to suspend manufacturing of its loss-making mobile phones in the country this year and shift the production to its existing plant in Vietnam, Yonhap News Agency said on Wednesday.

Citing an unidentified source, Yonhap reported that LG decided to move its local handset production to Vietnam to help turn around the money-losing smartphones division.

LG’s mobile business, in the red for seven quarters, and intensifying price competition in the global TV market likely weighed on its first quarter earnings, analysts have said.

LG Elec declined comment on the report.