Mobile // Mobile Devices
News
9/17/2010
03:02 PM
Connect Directly
RSS
E-Mail
50%
50%

LG Electronics CEO Resigns

Yong Nam stepped down as CEO of the struggling mobile phone maker and will be replaced by Koo Bon Joon, vice chairman of LG International.

LG Electronics CEO Koo Bon Joon
(click image for larger view)
LG Electronics CEO Koo Bon Joon
Amid problems with its flailing mobile phone business, LG Electronics' Chief Executive Officer Yong Nam resigned on Friday and will be replaced by a founding family member, according to a company statement. Koo Bon Joon, vice chairman of the larger conglomerate LG International, will take over next month.

"At a meeting of the board of directors held Friday, Nam Yong offered to resign as CEO to take responsibility for the slack performance and pave the way for a new CEO to prepare for next year and onward," the statement said.

Nam is the second CEO to resign from a major cell phone company in a week. Last Friday, Nokia ousted Olli-Pekka Kallasvuo and replaced him with Stephen Elop, an executive with Microsoft Canada. The 62-year-old Nam has been chief executive of LG Electronics, the third largest mobile phone maker in the world, since 2007. Koo, 59, has held executive positions at many LG Group subsidiaries. His brother, Koo Bon Moo, is the chairman of LG Group.

In July, LG Electronics posted a 33% decline in second quarter profits from the same period a year ago as its handset business saw a decline in revenues for the first time in four years. The company is predicting a similar loss in the current quarter.

LG Electronics and Nokia have both struggled to roll out smartphones to rival Apple's iPhone, and Android-powered devices by Samsung Electronics and HTC and Motorola. LG Electronics this week launched its Optimus One handset, and said it is projecting sales of 10 million for its first smartphone device to be sold worldwide through some 120 carriers. None of LG Electronics' smartphones have sold one million units.

Although management changes generally occur at the end of the year, the move to replace Nam now appears to indicate the company's desire to overhaul the struggling phone division right away. The company statement said the decision was made now in order to allow Koo time to get ready for next year.

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.