LG's smartphone business has not made a profit for two years now, despite numerous attempts by the company to restructure its approach and bring innovative products to the market.
Its devices are popular only if they are available with huge discounts, which is reason enough for the company to close down the business and focus on other, more profitable projects.
However, Kwon Bong-Seok, CEO of LG, believes otherwise.
Last year, Sook issued a statement predicting that LG's smartphone business would be profitable by 2021.
A recent report claimed that LG may have finally surrendered, however, an LG spokesman vehemently denied the report.
According to the now deleted report, LG has recently notified all South Korean employees that it will close its smartphone business, with an official announcement by the end of this month.
The report from Korean news site The Elec added that LG had instructed staff to stop all developments, with the exception of Project I, earlier this week.
Project I is the code name for LG's next mobile smartphone, which was recently introduced in 2021 CES.
The device was initially named Project B, but LG seems to have changed it to Project I at some point in the last few weeks.
While the report claimed that LG did not put the value smartphone on the shelf, it stated that the company had suspended all work related to the device on the day the notice was issued.
Ken Hong, LG's head of global corporate communications, said: "This report is certainly incorrect, and there is more speculation and rumours.
With regard to the retractable phone, Hong recently issued a statement confirming that it is a real product to be launched this year.
Although LG has officially rejected the report, it is worth noting that the company has stopped producing smartphones in South Korea in the past.
A report from last year also indicated that the company was planning to outsource the production of some of its low- and medium-class phones in order to reduce costs and focus its efforts on its next flagship phones.
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