LG has replaced its CEO after a record loss.
And it’s keeping it in the family. Koo Bon-joon, the younger brother of LG Group chairman Koo Bon-moo, will replace Nam Yong, who offered to resign from the top job at a board of director’s meeting.
“Nam Yong offered to resign as CEO to take responsibility for the flagging performance and pave the way for a new CEO to prepare for the coming year and beyond,” LG said in a statement.
Nam Yong, who has held the CEO post for four years, will now remain in the job until a March stockholders meeting where Koo will be officially appointed.
In July, LG Electronics posted its widest-ever quarterly loss of $103 million (120 billion won) at the handset business. Second-quarter profit at the division making televisions plunged 90 percent. The company said at the time the handset unit may recover in the fourth quarter, helped by the introduction of 20 smartphones this year.
Acording to Bloomberg, LG Electronics stocks rose 4.7 percent to $80,000 (102,500 won) at the 3 p.m. close in Seoul trading, the largest gain since March 25. The stock has dropped 16 percent this year and lost more than a third of its value since a peak of $140,000 (164,000 won) in May 2008.