Shares in LG Electronics plunged by nearly the daily limit of 15 percent late on Thursday, hit by market talk the company was planning a $890 million share sale to support its ailing smartphone business and unprofitable flat-screen unit.

LG Electronics shares were the second-most frequently traded stock on the main KOSPI index after LG Display, its flat-panel affiliate.

Shares in LG Electronics dropped 14.6 percent to 61,000 won as of 0537 GMT (1:37 a.m. EDT), the lowest in five weeks, compared with the KOSPI's 1.7 percent decline.

LG Display, in which LG Electronics is the top shareholder, was down 7.3 percent, and parent LG Corp lost 13.8 percent.

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)