South Korean appliance giant LG Electronics replaced its CEO and its entire executive line up yesterday the 28th
This is the aftermath of the smartphone division struggles and the fact that their net profits slumped more than 30 percent in the third quarter of the year.
South Korea’s second-largest electronics firm appointed Jo Seong-jin as CEO in December 2016. And even though he is respected in South Korea for his journey to the top despite the fact that he doesn’t have a college degree, he has struggled to turn around the failing smartphone division. Last month, LG announced its 18th consecutive quarter of losses.
LG Electronics’ net profits plummeted 30.5 percent between July and September of 2019.
In March 2018, 2 years after he was announced CEO, Jo’s term was extended by three years. But by the 28th of 2018, he was replaced by 56-year old Brian Kwon, who’s currently leading LG’s Mobile Communications and Home Entertainment companies, with effect from Sunday 1st of December.
LG Electronics also replaced its chief financial officer and then created a new post of chief strategy officer. The company also changed the presidents of its home entertainment and mobile communications units.
“We have judged we need a fast decision-making process… rather than stick with management style drawn from past successes,” the company said in a statement. Jo later announced his resignation, releasing a picture of himself and his successor smiling and hugging each other.