LG Group to trim marginal businesses for better focusLG, Korea’s fourth-largest family-run conglomerate, is expected to spin off or close down seven affiliates this year to better focus on its core business areas, industry sources said yesterday.
LG’s plans call for reducing the number of affiliates within the conglomerate to 57 from the current 64, they said.
The plan reverses decades of steady expansion pursued by the conglomerate to expand its business, a strategy that has drawn fire from critics for encroaching into areas fitter for smaller companies.
Such actions have also affected LG’s ability to focus its attention on key growth sectors.
Sources said Pixdix, an offline digital camera retailer, and two wine distribution companies belonging to LG International will be sold or closed by year’s end.
They added that a cosmetics retailer and trading company belonging to LG Household and Health Care will be merged or put up for sale.
The group’s marketing and communication operator GIIR plans to cut the size of its affiliates by two to improve efficiency.
“Most firms that will be removed from LG’s corporate lineup have either lost money or are not directly related to the group’s core businesses centered on electronics, telecommunications, chemicals, life science and renewable energy areas,” a source said.
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