LG Electronics CEO Quits

The CEO of LG's consumer electronics arm, LG Electronics, has quit following the company's poor performance in the smartphone market.

CEO Nam Jong will be replaced by Koo Bon-joon, the CEO of LG International, the trading arm of the Korean conglomerate. Bon-joon is also the brother of LG Group chairman.

The move follows top management changes at rival mobile phone maker Nokia, which recently replaced its CEO as well.

Both the companies have been under immense pressure to perform in the highly competitive smartphone market, in competition against companies like Apple, Samsung and Research in Motion.

Nam Jong resigned after the abysmal financial performance of the company in the second quarter, in which profits fell by 90 per cent and its mobile phone business line made an operating loss of 120bn won (£66 million).

LG said in a statement to the BBC: “We made the decision to give an incoming chief executive enough time to prepare for next year.”