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LG Electronics’s Mobile Business Chief Buys 2,000 Shares Ahead of New G6 Launch

By February 10, 2017 at 6:14 am
Cho Juno, head of LG Electronic's smartphone division, purchased 117.4 million won worth of company shares. (Photo : Photo: The New Daily)

LG Electronics mobile business boss Cho Juno bought 2,000 company shares worth around 117.4 million won, according to the company's regulatory filing Friday.

The share buyback this week by the head of the tech giant's smartphone division comes ahead of the company launch of the G6 smartphone. Analysts view the move by Cho as a vote of confidence for the company's fortunes this year.

This month, LG will unveil its new G6 smartphone at the Mobile World Congress (MWC). 

Cho purchased the stocks at an average buying price of 58,700 won per share, raising his stake to 4,637 shares of LG Electronics.

Cho took the helm of the company's mobile telecommunications business in November 2014. Since then, LG has launched the G4 and G5. He also pursued the rebranding of their fall phablet product to "V".

An industry official said that Cho's stock purchase before the launch of the new product signals his vote of confidence in the new smartphone or his determination to make the mobile business succeed.

During this tenure as president of LG's smartphone division, the company went part-modular with the G5 in 2016, but it wasn't enough to stop the mobile business losing 1.3 trillion won last year.

In the annual technology fair on Feb. 26 in Spain, LG Electronics will introduce the G6. Analysts believe Cho's fate will be determined by how its latest flagship smartphone will fare, following two successive flops in the market by the models launched under his leadership.

Unlike previous offerings, the launch of the G6 will mark the first time that LG Electronics will unveil its new smartphone ahead of its rival firm Samsung Electronics.

Despite efforts to turn the business around in recent years, such as cutting personnel costs among other things, LG's mobile business have posted seven straight quarters of operational losses.   

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