April 26, 2024

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[THE INVESTOR] LG Electronics said on Jan. 25 that its rival Samsung Electronics’ planned acquisition of US audio system firm Harman would pose a threat to its vehicle parts business.

“In the short term, the acquisition will cause little impact on LG’s VC business as Harman’s business portfolio does not overlap with that of LG,” said an LG executive in a conference call.

 

(From left) Samsung Electronics President and Chief Strategy Officer Young Sohn, Harman International CEO Dinesh Paliwal and Samsung`s automotive division chief and senior vice president Park Jong-hwan pose after a press conference held in Seoul on Nov. 21.

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“Samsung, however, could expand Harman’s businesses into other areas over time, which will lead to intense competition.”

Late last year, Samsung announced the US$8-billion acquisition deal of the US infotainment firm, which tops the US and European in-vehicle system markets.

LG has been recently beefing up its VC business, utilizing its technical edge in the display and mobile businesses.

The VC division of the firm posted 2.77 trillion won (US$2.37 billion) in sales last year while it posted an operating profit, according to the firm’s regulatory filing on Jan. 25.

The annual revenue of the Korean tech firm came in at 55.37 trillion won with its operating profit standing at 1.34 trillion won.

By Kim Young-won (wone0102@heraldcorp.com)