LG Electronics CEO Kwon Bong-seok vows to improve mobile business next year

SEOUL: The CEO of LG Electronics has vowed to improve the company's mobile communications business next year amid the pandemic. Kwon Bong-seok said that South Korea's No. 2 tech firm is "working hard" to create a turnaround in its struggling mobile business, reports Yonhap news agency.

"We are improving by reinforcing our cost competitiveness, and we plan to make quality improvements next year with growth in the premium sector," Kwon told reporters after the 15th Electronics and IT Day event in Seoul.

LG's mobile business has been in the red since the second quarter of 2015, though its losses have been narrowing recently. Its mobile unit posted an operating loss of 148.4 billion won (USD 136 million) in the third quarter, improving 58.1 billion won from the previous quarter.

At the Consumer Electronics Show in January, Kwon emphasised that LG plans to make a turnaround in its mobile business in 2021. Despite a prolonged slump in the mobile business, LG had a solid overall performance in the third quarter on the back of pent up demand for its home appliances.

Its third-quarter operating income stood at 959 billion won, up 22.7 per cent on-year, while sales reached 16.9 trillion won, rising 7.8 per cent over the same period. Both figures were record highs for the company in the third quarter.