LG Electronics has decided to shutter its mobile communication(MC) division. 

The electronics giant made the decision at a board meeting on Monday and made public that it was suspending sales and production in its MC unit in a regulatory filing. 

The company said it reached the decision due to a continuous slump in business amid rising competition. It will focus on key businesses and enhance business structures by efficiently making use of internal resources. 

The latest decision comes some two months after the firm revealed that it would leave all possibilities open for its MC division's future, including selling it. 

LG is said to have been in contact with Vingroup of Vietnam and Volkswagen of Germany in that regard, but the related discussions failed to make headway. 

LG Electronics launched its mobile communication business in 1995 and had once ranked third in global market share. 

But since the second quarter of 2015, the division has logged a deficit for 23 straight quarters through the fourth quarter of last year, with the cumulative deficit amounting to five trillion won.