Korean company LG InnoTek is announced to sell its LED business to Chinese company

It is reported that LG InnoTek would sell its LED patents and manufacturing equipment to a Chinese company, and it is estimated that the transaction price would be around KRW 100 billion.

Since the year 2019, LG InnoTek had made this withdrawal decision because it had suffered from huge of KRW 1 trillion for LED business continuously in the whole year. It had plannned to sell LED manufacturing equipment in China and South Korea in the second quarter of the year 2020, but the plan was delayed because of the covid-`9 pandemic. Actually, manufacturers from South Korea, Taiwan and China wanted to buy LG InnoTek’s LED business. Obviously, the former executive of the UVC LED production base in Paju,South Korea had tried to pursuade their engineers to reach an agreement with the Chinese company. It is proven that many potential buyers favor the the patents to be sold.

Also,LG InnoTek has been active in automotive LED lights business. In the year 2018, LG Electronics purchased Austrian automotive lighting company ZKW for KRW 1.4 trillion, since then, LG InnoTek has begun to focus on the automotive LED lights market by developing Nexlide LED module. Besides, it has also begun to develop the next-generation LED lighting module for high-end vehicles.

Earlier in the year 2020, LG InnoTek had re-organized the department of automotive lighting business. In this way, LG InnoTek faciliated its global expansion on the market of automotive LED light business.