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LG to spend $18b to boost flagging phone business

Company replaced electronics division head in September

LG to spend $18b to boost flagging phone business
LG is investing over $18 billion in its flagging mobile phone business.

According to Reuters, South Korea's LG Group has announced an $18.2 billion investment increase in 2011, designed to boost LG Electronics' flagging handset business.

LG Group, Korea'sfourth largest business conglomerate, has previously attempted to boost its loss-making handset business and increase competitiveness.

After seeing record operating losses in the July-September quarter, the electronics giant replaced LG Electronics chief executive with a founding family member in September, and took on new heads for the handsets and TV divisions later.

The company has recently introduced several new smartphone models including the Optimus One, which has sold two million units since the launch in October.

"The focus for 2011 will be bolstering our core businesses of smartphones, tablets, TVs and large-sized displays and also supporting new growth engines such as solar cell, new types of displays and small-sized display panels for smartphones and tablets," the group said in a statement.

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