LG Electronics replaces CEO in management reshuffle

Source : The Reuters
Dated : 19/12/2006

LG Electronics Inc. replaced on Monday,18th December 2006 , its chief executive and other senior officials in a management reshuffle that analysts say is aimed at bringing in momentum to its stalled handset and display businesses.

The moves come as LG reported disappointing handset sales this year and struggles with falling flat-panel prices. Analysts are worried that fourth-quarter earnings could worsen from the third due to weak panel prices and the stronger won currency.

Nam Yong, former vice chairman of LG Corp. and CEO of LG Telecom Co. Ltd., will become LG Electronics' new CEO and vice chairman, the company said in a statement.

Nam replaces Kim Ssang-su, who had headed the country's top home appliance maker since 2003.LG Electronics also promoted James Jeong, former head of corporate finance at the company, to replace chief financial officer Kwon Young-soo.

It also appointed Skott Ahn and Simon Kang as the new heads of its mobile communications and display businesses, respectively.

Media reports said on Monday Kwon was set to take the chief executive role at LG Electronics' loss-making flat-screen venture, LG.Philips LCD Co. Ltd. LG.Philips could not confirm the reports.

"It appears the selection of Nam, former LG Telecom CEO, reflects pressure from the market to improve LG's handset business," said Kevin Lee, an analyst at Woori Securities.

LG was the world's fourth-biggest handset maker in 2005 but slid to the No. 5 spot in the third quarter, hit by fierce competition for price and design with Nokia and Motorola Inc.

It was the largest plasma display panel (PDP) maker in the third quarter, overtaking 2005's No.1 Samsung SDI Co., but is facing dropping panel prices and tough competition from liquid crystal display (LCD) technology.