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Industry analysts said that the main drag on LG Electronics profits is mobile business. Eo Kyu-jin, an analyst at eBest Investment and Securities, said: "The mobile business of LG Electronics is not generating profits at all. In addition, higher marketing expenditure also drags down overall profits.
Analysts also said that in addition to the mobile phone business, the fierce competition in the high-end TV market, especially from Chinese competitors, and the global economic downturn, all cast a shadow over LG Electronics's future.
After the results were released, LG shares fell 1.5%.