The CEO of South Korea, the consumer electronics company LG Electronics has resigned Friday amid declining sales of mobile phones, according to press reports.
Yong Nam, told Reuters, will be replaced Oct. 1 by Koo Bon-joon, 59, who is the chief operating officer of the company LG International. The director general of entry is a member of the company’s founding family and younger brother of LG Group Chairman Koo Bon-moo.
Nam said LG has resigned to take responsibility for poor management and business performance. He was appointed in 2007.
According to Reuters, the mobile unit to LG, once accounted for about one third of group sales but contributed only a quarter of revenues in its second quarter results released in July. During the period, the mobile segment posted a record loss of 120 billion won (U.S. $ 103,100,000).
The expulsion of 62 years of age, following in the footsteps of a leadership reorganization in another mobile phone giant Nokia. The Finnish phonemaker announced last week that it has named Stephen Elop Microsoft to take over Olli-Pekka Kallasvuo, CEO.
Despite being among the top three handset manufacturers in the world, Nokia and LG sales have been dropping the pressure rises from the intense competition from rivals including Apple’s smartphone, and Research In Motion. Nokia’s Symbian platform is also at risk of losing market share to Google Android.
LG is the mobile phone maker’s third largest worldwide, but sales of smartphones have not exceeded the 1 million mark, according to the Reuters report.
Citing KB Investment & Securities analyst Cho Harrison, told Reuters more changes in the management of LG are expected. Koo said Cho was expected to replace mobile LG Scott Ahn chief and other senior executives in an attempt to respond more quickly to market changes.