SEOUL — Samsung Electronics Co. said Monday it would spin off its liquid crystal display (LCD) operations into a separate company.
The news from the electronics giant, which was made in a regulatory filing, comes after the company said last week it was considering the spin-off to strengthen the competitiveness of the operations, which have been mired in losses due to a supply glut.
The operations will be spun off into a new firm called Samsung Display Co., which will be launched April 1 with capital of about $668 million, according to the filing.
Samsung Electronics will hold 100 percent of the new entity, a Samsung Electronics spokesman said.
Late last year, Samsung ended its partnership with Sony Corp. to produce large LCD screens for televisions. The LCD market has been in a cyclical downturn with weak demand and a supply glut weighing on prices.