Sunday, September 19, 2010

LG Replaces CEO After Record Mobile Phone Losses

LG announced that it has replaced its CEO after a record loss in its mobile handset business, according to Bloomberg.

Koo Bon Joon, LG Group Chairman Koo Bon Moo's younger brother, will take over from Nam Yong effective Oct. 1, South Korea's fourth-largest family-run industrial group said today. Nam, 62, resigned to take responsibility for the "current difficult situation," LG Group said.

LG Electronics shares climbed on speculation Koo, 58, will turn around a company that failed to capitalize on a surge in demand for smartphones. LG's stock rose 4.7 percent, the largest gain since March 25th.

"Investors seem to view this appointment as the company's will to pull itself together to come up with a better business strategy for mobile phones," said Im Jeong Jae, a fund manager in Seoul at Shinhan BNP Paribas Asset Management Co., which oversees $27 billion. "Nam's resignation was inevitable given that LG has lagged behind in spotting the popularity of smartphones, relegating it to a second-tier name."

This announcement follows the recent replacement of Nokia's CEO Olli-Pekka Kallasvuo with Stephen Elop.

*thanks iclarified*

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