South Korean electronics giant LG has swung to a fourth-quarter net loss of KRW671 billion (US$493 million) – its first loss in almost two years – due in part to shrinking profits at its mobile phone unit. LG’s Mobile Communications division saw sales rise 34.6 percent year-to-year to KRW4.49 trillion, with handsets accounting for KRW4.09 trillion. Handset shipments recorded 8 percent growth year-on-year to 25.7 million, which resulted in a record 100.7 million units being sold in 2008, a figure that some reports suggest would have made LG the third-largest handset vendor last year. However, the handset unit’s operating profit margin slumped significantly, dropping to 5.2 percent, a fall of 8.8 percent year-on-year, and 11.5 percent quarter-on-quarter.

LG added that its handset sales stayed strong in Europe and Asia, despite the economic slowdown, due to the introduction of new models such as the ‘Renoir,’ an 8-megapixel camera phone, and the ‘Cookie’ touchscreen. LG said its focus in 2009 would be “to grow continuously and expand market share, capturing more of the market for feature-packed premium models, smartphones and mid-to-low end mass volume units.”