LG Electronics will spend more than half of its initial 2012 capex budget, at least $500m, on boosting its handset business, which the markets took as a sign of how much the Korean firm needs to spend to catch up in smartphones. The company set its capex target for next year at $1.03bn, though a spokesperson said that initial estimate would likely rise substantially, and with it, potentially, the handset spend. LG set a 2011 target for total capex of $4.29bn. The company also plans to raise $940m via a rights offering in a bid to boost investment in its handset unit and other core businesses. In a statement, LG said it aims to invest $413.5m in smartphones R&D. India’s…