(Photo: Yonhap News)
LG Electronics has announced it is officially withdrawing from the mobile business.
The South Korean tech giant said in a regulatory filing Monday that starting on July 31 its mobile communications unit will no longer produce and sell handsets, citing its prolonged slump and fierce competition in the industry.
The decision came two months after LG said its mobile communication division was open to "all possibilities" for its future operations.
According to informed sources, LG's negotiations to sell part of its business to Vietnam's Vingroup reportedly fell through due to differences about terms.
The company's MC business, which launched in 1995, has been in the red since the second quarter of 2015, with its accumulated operating losses reaching 5 trillion won last year.
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