LG Electronics' CEO, Yong Nam, has resigned as the company's CEO as the company seeks to return to profitability. Nam will be replaced by Bon-joon Koo, who is currently the CEO of LG International, the trading arm of LG. Koo will assume the role of LG Electronics' CEO on October 1.
Koo has held senior management positions at multiple LG units. He was the first CEO in the LG Philips LCD joint venture, which then became LG Display. Koo played a key role in attracting investment of $1.6 billion from Philips and in the establishment of the joint venture, LG said. Nam has taken full responsibility for the current financial situation of LG Electronics, said an LG spokeswoman.
During the second fiscal quarter, LG Electronics' total sales tallied 14.4 trillion Korean Won ($12.4 billion), dropping 0.7 percent compared to the same quarter the previous year, while net profit declined by 33 percent.
LG Electronics sells products including mobile handsets, home entertainment systems and appliances. While most of the company's divisions showed positive sales growth, the Mobile Communications group, which includes smartphones, recorded a year-over-year sales decline of 29.5 percent, according to quarterly figures reported on July 28.
LG is the world's third largest handset maker behind Nokia and Samsung. Earlier this month, Nokia announced that it would replace its CEO, Olli-Pekka Kallasvuo, with Stephen Elop, who headed Microsoft's business software group.