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​LGE to Move Smartphone Assembly from Korea to Vietnam
May 06, 2019
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LG’s mobile division has losing market share and money and now they are suspending mobile phone production in their home country of South Korea. The mobile division's annual sales reached 1.7 trillion won (US$1.5 billion) last year but posted an operating deficit of 322.2 billion won due to weak sales of smartphones and increased marketing costs. This decision comes as the company is taking steps to cut costs and optimize their mobile business. The company is reportedly relocating the production to an existing plant in Vietnam. The Korean plant is said to have accounted for 10-20% of all the company’s handsets. The following table shows why Vietnam presents a better economic proposition for assembling tasks compared to other countries, including Korea and China.
 
Table 1: Average Monthly Net Salary (After Tax) 

Source: Numbeo

[1] 1 bedroom apartment in city center
[2] Levi 501 or similar
[3] 12 oz. small bottle
[4] 12 oz. small bottle
[5] 20 Pack - Marlboro
[6] 1 Gallon
[7] Crowded House - 1986
 e 1 - Cost of Living - Selected Countries - Source: Numbeo
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