Yong Nam, a man who reigned at the top position of LG for just three years, has announced that he will step down amidst deepening pressure that he leave the fledgling company. LG has been left in the dust after competing mobile phone manufacturers like Motorola and HTC have taken a stranglehold of the industry. LG has sloughed off a lot of market share in this industry during Nam's time as CEO.
Other sectors have also been falling, including sluggish growth in the TV, display, and home appliances markets. Reuters reports it is largely because of the company's lowering performance in the mobile industry that prompted officials to start calling for Nam's resignation.
Veteran LG executive Bon-joon Koo will replace Nam as the company's CEO. Koo has worked across numerous LG divisions including its display, electronics, and semiconductor departments. He has also worked in corporate positions but never held a senior title in the company's mobile phone division.
However it was because of him that LG was able to grow its production and reach of mobile TFT displays, according to the company's official comments about the CEO shake-up.
Because of a strong footprint in the rest of the world, LG still holds a 9.6% market share of all global mobile phone sales. However, that's a drop from 10.8% last year which includes a much more significant falling in the US.