However, mobile phone sales remained higher than a year ago when they came in at 11 million. LG is the world's fourth largest mobile phone maker.

Weak margins

Currency concerns also weighed on the business, which relies on exports for three-quarters of its sales, with the stronger won leading to tighter margins.

The won is 4.5% stronger than it was at the same time last year.

But a recovery at the firm's joint venture with Philips Electronics, LG Philips, which makes flat screen panels for computers, also helped boost earnings. It posted a profit of 48bn won for the first quarter, compared to a 79bn won loss during the same period last year.

Looking ahead, the firm was confident mobile sales would pick up as it begins to export its "chocolate" phone.

The slim LG5900 handset with a sliding keyboard has become a best seller in Korean market following its launch in November last year.