LG Electronics adds new corporate charter objectives, including crypto

NFT art pieces or blockchain-minted artworks are displayed on LG Electronics organic light-emitting displays (OLEDs). [YONHAP]

LG Electronics has added cryptocurrency, blockchain and medical devices as new business areas in its corporate charter, heralding an expansion into fresh fields beyond home appliances.

The change was approved during the shareholders meeting on Thursday.

Its new objectives include "the development and selling of blockchain-based software" and "the sale and brokerage of cryptocurrency."

Asked whether the additions means that the electronics company will jump into establishing a cryptocurrency exchange, a spokesperson answered vaguely.

"Nothing has been decided yet," the spokesperson said, "We just mentioned business areas in a broad manner."

The building of exchanges can be difficult due to regulatory hurdles, but the making and selling of devices that support the viewing of non-fungible tokens (NFTs) would not face those challenges.

The tech manufacturer introduced smart television models with the NFT option last month with Kakao's Ground X, a blockchain company.

It also announced a partnership with Seoul Auction Blue, an NFT-focused company, to carry out projects related to NFT-based artworks.

LG Electronics cited the development and sale of medical devices as new business objectives.

The move dovetails with a recent series of healthcare device releases. Most recently, it brought a pain relief device called MediPain to the Korean market in January.

It also released an advanced X-ray detector last year. The device offers a more convenient, time-efficient way to generate and analyze X-ray images, according to the company.

To enhance research capabilities, the tech company signed a partnership last October with KAIST to establish a Digital Health Care Research & Development Center at the university in Yuseong District, Daejeon for the research and development of medical technology and devices.

Other fields being added include the licensing of intellectual property (IP), IP trading, and the development of functional materials, such as glass powder.

While LG Electronics is seeking new sources of revenue, the company is retreating from unprofitable businesses.

It exited from manufacturing solar panels last month due to heavy competition with price-cutting Chinese suppliers. It entered the business in 2010.

The company also made a highly-publicized departure from the smartphone business last year, beset by shrinking market share and cumulative losses of over 5 trillion won ($4.1 billion).

It struggled to maintain a firm share in the face of stiff competition with Apple and Samsung Electronics in the high-end market and Xiaomi and Oppo in the budget range.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]