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LG Chem Ltd. will sell its liquid crystal display (LCD) polarizer business unit to Chinese firm Shanghai Shanshan Chemical Co., Ltd. for 1.3 trillion won to focus on core businesses.
Only the LCD polarizers needed to produce TVs and handsets will be sold, as LG Chem will keep the unit of LCD polarizers used in automobiles.
LG Chem's board of directors and Shanshan's shareholders will still need to approve the proposed sale.
The company plans to foster its high-end organic light-emitting diode (OLED) polarizers and car battery businesses.
LG Chem's net profit plummeted 83 percent to 36.35 billion in the first quarter from 211.94 billion won in the same period last year.
Its operating profit dropped 16 percent to 236.46 billion won in January to March, from 281.04 billion won a year earlier.
First-quarter sales were 7.12 trillion won, up 7.5 percent from 6.62 trillion won in the same period in 2019.
