LG Elec. to sell automotive wireless smartphone charging division

South Korea’s LG Electronics Inc. plans to drop its automotive wireless smartphone charging unit as the global home appliance giant exited from the loss-making mobile phone business last year. The sale is likely to allow the company to focus more on new businesses after the completion of the reorganization.

LG decided to sell the division within the company’s Vehicle Component Solutions unit to South Korea’s BH Co., a Kosdaq-listed smartphone parts maker, for 140 billion won ($115.2 million) according to investment banking industry sources on Sunday. BH will buy the division through BH EVS Co., its affiliate for the automotive electronics business established earlier this month.

LG has been recognized for its automotive wireless smartphone charging business -- leading international standards for the technology as a board member of the World Power Consortium (WPC) since it started the business in 2017.

The South Korean company supplied the system to global carmakers such as General Motors Co. while applying the technology to its concept autonomous vehicle unveiled at the CES 2020.

“I am aware that LG Electronics has secured orders for 200 billion won a year from existing customers by 2027,” said an industry source. “The buyer is set to enjoy stable profits, while the seller will be able to accelerate its reorganization through the deal.”

MEDICAL DEVICES, BLOCKCHAIN-BASED SOFTWARE, CRYPTOCURRENCIES

LG has been closing loss-making or unpromising sectors to focus on future businesses. Last month, it announced a decision to withdraw from the solar panel industry in the face of deepening competition and sluggish sales.

On the other hand, the company is seeking opportunities from new sectors such as medical devices, software based on blockchain technology, and cryptocurrencies. It may use the proceeds from the sale of the automotive wireless smartphone charging unit for mergers of other firms, industry sources speculated.

BH, founded in 1999, is a supplier of flexible printed circuit boards for smartphone displays to global phone makers such as Apple Inc. and Samsung Electronics Co. BH reported 71 billion won in operating profit in 2021 as its sales topped 1 trillion won for the first time.

The company seeks to expand its business portfolio from smartphone components into sectors related to auto parts.

Write to Jun-Ho Cha and Byung-Keun Kim at chacha@hankyung.com
Jongwoo Cheon edited this article.