LG Electronics put the release of all new smartphones on hold and was said to increasingly be considering the closure of its troubled Mobile Communications unit due to a lack of progress with potential buyers, Dong-A Ilbo reported.

The electronics giant had discussed a part or complete sale with Vietnam-based Vingroup and Germany-headquartered Volkswagen Group, the newspaper wrote explaining negotiations broke down.

Dong-A Ilbo stated the Mobile Communications’ units global market share as a major obstacle to securing an attractive price: Counterpoint Research data showed it held a 2 per cent share in 2020.

A source told Dong-A Ilbo development of the LG Rollable was on hold, with slim chances of it launching.

An LG representative told Mobile World Live: “No decision has been made as of yet on the future of LG’s mobile business, and it definitely won’t be made at a shareholders’ meeting.”

The company’s annual shareholders meeting is scheduled for Friday (26 March).

In mid-January, local media reported LG was reviewing the future of the device division, considering downsizing, selling or pulling out of the market entirely.

The unit recorded a Q4 loss of KRW248.5 billion ($220.1 million) in Q4 2020, down from a KRW332 billion loss in the comparable 2019 quarter.