LG's latest premium phone, the G8 ThinQ.

LG is making some literal moves. The South Korean electronics and phone company is halting mobile production in South Korea for the year, and focusing instead on one of its plants in Vietnam, according to Reuters and first reported by South Korean news outlet Yonhap News Agency.

The move may have to do with the fact that LG's phone sales are struggling. Though LG overall is profiting, its mobile division posted a $172 million loss in the second quarter of 2018. And while smartphone sales are down globally, things are especially difficult for LG. Its last couple of flagship phones didn't take off, and it still must compete against bigger companies like Samsung, Huawei and Apple, too.

As reported by Reuters, the factory in South Korea mostly makes premium phone models, which would include devices like the LG G8 ThinQ or the upcoming V50 ThinQ, and manufactures about 10% to 20% of LG's total smartphones. In addition to South Korea and Vietnam, the company also has factories in China, Brazil and India.

LG did not immediately reply to a request for comment.