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According to Korean media, LG InnoTek planned to sell its LED patents and manufacturing equipment for a Chinese company. The selling price was around KRW 100 billion, and their discussion about the sale has been started.
The report has learned that this October, LG InnoTek revealed its withdrawal of the LED business. Actually, the company has made this decision since 2019, mainly due to the huge loss of KRW 1 trillion during 12 straight years for LED business.
Originally, LG InnoTek decided to sell the LED manufacturing equipment in China and South Korea in 2Q20. Yet, owing to the COVID-19 pandemic, the plan was postponed.
According to people familiar with the matter, manufacturers in South Korea, Taiwan and China were willing to purchase LG InnoTek’s LED business. The former executive of the UV LED production base in Paju, South Korea has tried convincing engineers to make an agreement with the Chinese company.
It is worth noting that LG InnoTek has developed and deployed UV LED for a long time. Due to its plentiful experiences and techniques, the patents to be sold this time were especially favored by potential buyers.
According to information, LG InnoTek has held positive attitude toward LED automotive lighting business. Since LG Electronics purchased Austrian automotive lighting company ZKW for KRW 1.4 trillion in 2018, LG InnoTek has actively worked on the LED automotive lighting market and focused on the development of Nexlide LED module. Meanwhile, it has also developed the next-generation LED lighting module for high-end vehicles.
At the beginning of 2020, LG InnoTek has re-adjusted the department of automotive lighting business. With its new name of automotive lighting solution business, LG InnoTek accelerated the global expansion for automotive lighting business. In the future, LG InnoTek will keep on the development and expansion for the automotive lighting business.