"Foreign Media Reports 'LG Sells Vietnam Mobile Phone Factory'... LG Electronics Denies"

700 Brazilian Taubate Factory Workers Go on Strike

LG Electronics Vietnam Haiphong Campus Overview

[Asia Economy Reporter Cha Min-young] LG Electronics, which is exiting the mobile phone business, has been reported by local media to be seeking a new owner for its factory in Vietnam. However, LG Electronics denied this, stating that "we are not considering a sale."

According to a compilation of local Vietnamese media on the 15th, LG Electronics is reviewing the option of selling its Hai Phong factory in Vietnam. The price is estimated to be 90 million USD (approximately 100.4 billion KRW).

Previously, foreign media had speculated that withdrawal from overseas factories was inevitable and had repeatedly expressed concerns about the sale of the Hai Phong factory. Vingroup of Vietnam, which was considered a potential buyer during the smartphone business sale process, was reportedly only interested in patents and technology, not the factory or equipment.

In response, LG Electronics dismissed the sale rumors. An LG Electronics official said, "We are not proceeding with a sale itself. While some equipment, such as smartphone manufacturing lines within the factory, might be sold, the rumor about selling the entire factory is factually incorrect." It was explained that the Hai Phong factory is located within LG Electronics' home appliance cluster (industrial complex), making the sale of the entire factory difficult.

The annual smartphone production volume of the Hai Phong factory in Vietnam is about 10 million units, accounting for 40% of LG Electronics' total smartphone production. LG Electronics had previously ceased operations at its smartphone production plant in Pyeongtaek, Gyeonggi Province, in 2019 and transferred related equipment to the Hai Phong factory.

At another overseas site, the Taubate factory in Brazil, conflicts arose with production line workers. The employees refused the consolation payments offered by management due to the factory's shutdown and went on strike.

The Taubate Metalworkers Union, 'Sindmetau,' told local Brazilian media that 700 employees working on the mobile phone and monitor lines are participating in the strike. After the consolation payment negotiations failed on the 12th, LG Electronics reportedly proposed additional consolation payments ranging from 8,000 to 359,000 Brazilian Reais (approximately 1.56 million to 7.004 million KRW).