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Goodbye South Korea, hello Vietnam: LG suspends smartphone production in South Korea

LG's ailing smartphone business has consistently made losses for almost two years. (Image source: Mobilesyrup)
LG's ailing smartphone business has consistently made losses for almost two years. (Image source: Mobilesyrup)
The South Korean manufacturer is reportedly switching production of its flagship smartphones from its home country to an existing plant in Vietnam. The move is an effort to reduce manufacturing costs amid seven consecutive quarters of losses. LG currently manufacturers up to a fifth of its smartphones in South Korea.

Business is not going well for LG. The company may be continuing to release a slew of smartphones including the V40 ThinQ and G8 ThinQ, but its smartphone business has made losses for seven consecutive quarters, or almost two years. There are no signs that LG is planning to mothball its smartphone business, although it is reportedly making some fundamental changes to operations to minimise these losses.

According to the South Korean-based Yonhap News Agency, LG will shift smartphone production from its Pyeongtaek factory in the south of Seoul to Hai Phong in northern Vietnam by the end of the year. The company will also move around 750 workers from Pyeongtaek to its home appliance plant in Changwon. The South Korean manufacturer has smartphone production plants in Brazil, China and India too, but it produces between 10 and 20% of its smartphones in its home country. LG has also made the following statement:

The plan is a strategic move to improve the profitability of its smartphone business amid a slump in the global smartphone market and increased demand for home appliance products, such as air purifiers and dryers.

LG currently has around a 3% global smartphone market share and sits behind Samsung, Huawei, Apple, Xiaomi, Oppo and Vivo according to research conducted by Counterpoint Research. Bleak times indeed.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 04 > Goodbye South Korea, hello Vietnam: LG suspends smartphone production in South Korea
Alex Alderson, 2019-04-25 (Update: 2019-04-25)
Alex Alderson
Alex Alderson - News Editor - @aldersonaj
Prior to writing and translating for Notebookcheck, I worked for various companies including and Apple Neowin. I have a BA in International History and Politics from the University of Leeds, which I have since converted to a Law Degree. Happy to chat on Twitter or Notebookchat.