[Featured Stock] LG Electronics MC Division Suspension of Operations... Stock Price Up 0.63%

[Asia Economy Reporter Junho Hwang] LG Electronics announced on the 5th that it will cease production and sales of its MC Division (mobile phone business). As a result, LG Electronics' stock price is showing an upward trend.

At the board meeting held on the same day, LG Electronics decided to suspend operations of the MC Division, with the suspension amounting to approximately 5.21713063 trillion KRW. This corresponds to 8.2% of sales. The suspension date is July 31.

LG Electronics stated that it is exiting the mobile phone business due to intensified competition and continued business downturn. Instead, it added that it will focus its capabilities on core businesses through internal resource optimization. To this end, it plans to improve the company-wide business portfolio through selection and concentration.

Regarding the impact of the suspension, it said, "Although the termination of the MC business may cause a short-term decrease in overall sales, mid- to long-term improvements in business structure and financial health are expected."

Following the announcement of the suspension plan, LG Electronics' stock price has been rising. On the Korea Exchange, LG Electronics' stock price rose 0.63% (1,000 KRW) to 159,500 KRW.

This content was produced with the assistance of AI translation services.