LG Denies Reports of TV Business Sale to Hisense Amid Growing Competition From Chinese Brands

LG Electronics has strongly refuted media reports suggesting that the company is considering a restructuring or outright sale of its television business to Chinese electronics manufacturer Hisense. In a statement to the media, the South Korean tech giant dismissed the claims, calling the ongoing speculation "incorrect and misleading."

Rumors of Restructuring

The speculation initially gained traction following a report by South Korean media outlet EBN, which claimed that LG executives had recently traveled to Beijing to meet with senior Hisense officials. According to that report, the discussions allegedly centered around restructuring options for LG’s TV division, including a potential sale.

Initial market reactions pointed to the move as a major shift in the global television landscape, given LG’s nearly 60-year legacy in the industry. However, LG clarified that no official review or announcement regarding such a sale has been initiated at the corporate level. JPMorgan Employee Termination Dispute Over USD 642 Expense Ends in USD 4.25 Million Payout

Rising Pressure from Chinese Competitors

The rumors come amidst intensifying competition in the global television market. Traditional premium brands like LG and Samsung face mounting pressure from aggressive Chinese manufacturers, notably Hisense and TCL. These companies have steadily captured global market share by offering large-screen displays at lower price points. CRED Layoff Rumours: Viral Social Media Post Alleges Fintech Giant of 'Silent' 30% Tech Team Cuts; Spark Debate.

According to data from market research firm Omdia, TCL and Hisense accounted for approximately 14% and 12.5% of global TV shipments last year, respectively. In contrast, LG’s market share has hovered in the low-to-mid 10% range. Combined shipment data shows that Chinese brands TCL, Hisense, and Xiaomi have collectively outpaced the market volume of South Korean leaders Samsung and LG since 2024.

The Profitability Challenge

Industry analysts note that while LG’s Media and Entertainment division remains a significant revenue driver, maintaining long-term profitability has become structurally difficult. In the first quarter of the year, the division posted sales of 5.16 trillion won and an operating profit of 371.8 billion won.

Despite these figures, profit margins in the television sector often remain low, lingering between 1% and 2%. Rising production, logistics, and supply chain costs have impacted even premium segments like LG’s flagship OLED displays, prompting the company to implement cost-cutting measures, including workforce reductions and increased manufacturing outsourcing.

Historical Precedents

Market observers initially found the sale rumors plausible due to recent high-profile shifts in the industry. Notably, Japanese electronics giant Sony recently handed majority control of its Bravia TV manufacturing business to TCL.

Furthermore, LG itself has a history of exiting legacy sectors to protect its bottom line. In 2021, the company permanently closed its smartphone division following consecutive years of financial losses, choosing instead to reallocate resources toward high-growth, future-oriented sectors such as electric vehicle (EV) components, robotics, and smart home technology.

Despite the denial, industry experts suggest that the structural challenges facing the premium TV market will continue to force traditional manufacturers to evaluate their long-term production and pricing strategies.