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BREAKING NEWS

LG Electronics to shut South Korean phone factory, move production to Vietnam

LG Electronics to shut South Korean phone factory, move production to Vietnam
FILE PHOTO: A man talking on his phone walks past the logo of LG Electronics during Korea Electronics Show 2016 in Seoul, South Korea, October 27, 2016. REUTERS/Kim Hong-Ji -
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Kim Hong-Ji(Reuters)
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SEOUL (Reuters) - LG Electronics Inc said on Thursday it would stop producing smartphones in South Korea and move manufacturing to Vietnam, joining global rivals shifting factories to low-cost locations as they battle a slump in global demand.

Samsung Electronics Co Ltd, the world's biggest smartphone maker, said late last year it would cease operations at one of its mobile phone plants in China.

Japan's Sony Corp is also closing its Beijing smartphone plant as it works to make its money-losing handset business profitable.

LG, whose smartphone business has been losing money for several years, said the move will boost annual production capacity of its smartphone plant in Vietnam by 83 percent to 11 million handsets from the second half of this year.

Shares in LG Electronics were trading up 2 percent, versus a 0.3 percent decline in the broader market.

(Reporting by Ju-min Park; Editing by Christopher Cushing)

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