Seoul: South Korean electronics giant LG Electronics has firmly denied reports suggesting it plans to sell its television business, calling such claims “incorrect and misleading”. The clarification comes amid speculation triggered by industry reports that the company was considering restructuring its TV division.

In a statement to India Today Tech, LG confirmed that it has no plans to exit the television market, putting to rest rumours that it might follow competitors in offloading its TV operations. The response follows a report by a Korean media outlet which claimed that LG had explored options, including a potential sale, with Chinese electronics firm Hisense.

Reports of restructuring spark speculation

According to earlier reports, LG executives had recently travelled to Beijing and held discussions with senior officials at Hisense regarding the future of its television business. Among the options reportedly considered was restructuring the division, which could have included a possible sale.

However, LG has clarified that no such decision has been made. The company stated that it is “difficult to establish” claims about the sale of its TV business without any formal review or official announcement at the corporate level. Neither LG nor Hisense has confirmed any concrete negotiations regarding a transaction.

The rumours gained traction particularly after Sony’s recent decision to hand over majority control of its Bravia TV business to Chinese manufacturer TCL, signalling a broader shift in the global television industry.

Increasing competition from Chinese brands

The global TV market has been undergoing significant changes, with Chinese manufacturers such as TCL and Hisense steadily increasing their market share. These companies have gained an edge by offering competitively priced large-screen televisions, putting pressure on established premium brands like LG and Samsung.

Data from market research firm Omdia indicates that TCL accounted for approximately 14 per cent of global TV shipments last year, while Hisense held around 12.5 per cent. In comparison, LG’s share has remained in the low-to-mid 10 per cent range.

The report further highlights that the combined shipment share of TCL, Hisense and Xiaomi has surpassed that of traditional leaders Samsung and LG since 2024. This shift underscores the growing dominance of cost-efficient Chinese manufacturers in the global television market.

Profitability challenges in TV segment

One of the key reasons behind speculation about a potential sale is the declining profitability of the television business. LG’s Media and Entertainment division has been under financial pressure despite showing some recovery in recent quarters.

The division reported sales of 5.16 trillion won and an operating profit of 371.8 billion won in the first quarter. However, analysts suggest that long-term profitability remains uncertain due to structurally low margins in the TV industry, typically ranging between 1 to 2 per cent.

Even LG’s premium OLED television strategy has faced challenges, as rising production and logistics costs have limited its ability to significantly boost profitability. In response, the company has already implemented cost-cutting measures, including workforce reductions and increased outsourcing of manufacturing processes.

A legacy spanning nearly six decades

LG’s television business has a long and significant history. It dates back to August 1966, when its predecessor GoldStar introduced South Korea’s first black-and-white television set, the VD-191. Over the decades, LG has established itself as a global leader in television technology, particularly in the premium OLED segment.

A potential exit from the TV business would have marked the end of nearly 60 years of manufacturing legacy. However, the company’s recent statement confirms its continued commitment to the segment.

Strategic shifts and future focus

While LG has denied plans to sell its TV division, industry observers note that the company has previously exited underperforming businesses. In 2021, LG shut down its smartphone division after prolonged losses, signalling a strategic shift towards more profitable and future-focused sectors such as electric vehicle components, robotics, and smart home solutions.

The ongoing review of its television business, if any, may therefore be part of a broader effort to improve operational efficiency rather than a move towards divestment.

Conclusion

LG Electronics’ clear denial of any plans to sell its television business brings much-needed clarity amid widespread speculation. While the global TV market continues to face challenges such as shrinking margins and intense competition, LG appears committed to maintaining its presence in the sector.

Going forward, the company is likely to focus on strengthening profitability and adapting to evolving market dynamics, rather than exiting a business that has been central to its identity for nearly six decades.