Pantech Co., formally South Korea's No. 3 smartphone maker until suspending its handset business last year, said Wednesday it decided to sell its Internet-of-Things division.
The company was on the verge of facing bankruptcy before being acquired by local telecom device firm Solid Inc.
Through a regulatory filing, Solid said it will sell Pantech's IoT business to Woori-Net, another South Korean telecom firm.
Pantech struggled to normalize its operations by releasing the IM-100 smartphone last year, but the company eventually decided to end production of handsets and instead focus on the IoT technology business.
The latest decision marks another end to Pantech's major businesses, casting clouds over its fate down the road.
Pantech used to be viewed as one of the most innovative handset makers in the globe and was the first company anywhere to incorporate a fingerprint sensor into a smartphone.
Solid plans to utilize funds raised by the sales of the IoT business to provide warranty services to Pantech handset users and to support other Pantech business operations.
"As the financial situation of Pantech deteriorated, it was virtually impossible for the company to produce and supply products," a Pantech source said, adding the latest contract is significant as it paved the way for Pantech to seek new business opportunities. (Yonhap)