LG Reportedly Considers Sale of TV Business Amid Market Pressures

​LG, the Korean electronics company, may be preparing to restructure or sell its television business. This development follows Sony's recent decision to hand majority control of its Bravia TV division to Chinese manufacturer TCL. According to a report by Korean outlet EBN, LG has discussed potential restructuring, including a possible sale, with Chinese electronics firm Hisense.

Key Highlights

• LG is reportedly in talks with Hisense to restructure or sell its TV business.
• TCL and Hisense now control a larger share of global TV shipments than Samsung and LG.
• LG's TV division posted 5.16 trillion won in sales and 371.8 billion won profit in Q1.
• Industry analysts cite low profit margins and rising costs as key challenges for LG.

LG's Discussions with Hisense

The report states that LG executives traveled to Beijing to meet with senior Hisense officials. During these meetings, they reportedly discussed several options for LG's TV division, including a potential sale. Neither LG nor Hisense has officially confirmed these talks. LG responded to the report by stating it is "difficult to establish" claims about a sale without an official review or announcement.

This news comes as global TV manufacturers face slowing demand, shrinking profit margins, and increased competition from Chinese brands. Companies like TCL and Hisense have gained market share by offering large-screen TVs at lower prices. This trend has made it harder for established premium brands to remain profitable.

Market Share and Industry Trends

Market research firm Omdia reports that TCL and Hisense accounted for about 14 percent and 12.5 percent of global TV shipments last year. LG's share has remained in the low-to-mid 10 percent range in recent years. The combined shipment share of TCL, Hisense, and Xiaomi has now surpassed that of Samsung and LG since 2024.

LG's television business began in August 1966, when its predecessor GoldStar launched Korea's first black-and-white TV, the VD-191. A sale to Hisense would end nearly 60 years of LG's TV manufacturing legacy.

Financial Pressures and Strategic Shifts

Reports suggest LG is considering a sale due to ongoing profitability challenges. LG's Media and Entertainment division, which includes its TV business, has faced financial pressure despite some recovery this year. In the first quarter, the division posted sales of 5.16 trillion won and an operating profit of 371.8 billion won. However, analysts believe long-term profitability is difficult, as TV margins often remain around 1 to 2 percent.

Even LG's focus on premium OLED TVs has not fully offset rising production and logistics costs. The company has already implemented cost-cutting measures, including workforce reductions and increased outsourcing of TV production.

Previous Business Exits

This is not the first time LG has exited a major business segment. In 2021, LG shut down its mobile division after years of losses, ending product lines such as the LG Wing and V-series smartphones. The company then shifted focus to more profitable areas, including electric vehicle components, robotics, and smart home technologies.

Industry analysts view the review of LG's TV business as part of a broader long-term strategy to focus on future-oriented and profitable sectors.