LG appoints new mobile division president and CEO in bid to turn its business around
Just because a company chooses or is forced to reorganize its management team, that doesn’t mean it’s in any kind of trouble. Not necessarily, as Samsung, for instance, is doing better than ever from a financial standpoint, selling smartphones, TVs, displays and memory chips like hotcakes, nonetheless having to restructure the leadership of its many Electronics businesses recently.
But you can probably safely assume LG’s own executive shakeup was in large part precipitated by the perpetual inability of the chaebol’s mobile division to turn a profit.
Smartphones like the G6 and V20, which critics generally praised, lost around $330 million in Q3 2017 alone, following a long string of similarly poor results posted by devices like the G5, V10 or G4, not to mention all those unpopular mid-rangers.
Consequently, the LG Mobile Communications Company will be led by Hwang Jeong-hwan starting December 1, as the department’s current president Juno Cho “takes on a new role within LG’s parent company.”
LG isn’t revealing much of Hwang’s résumé, merely highlighting the new mobile president and CEO’s “years of experience in R&D” and his “close” involvement in developing one of the company’s first smartphones in 2009.
Dr. Park Il-pyung, meanwhile, which will officially assume new duties as Chief Technology Officer tomorrow, worked for both Samsung and Samsung subsidiary Harman International in the past before joining LG as Software Center head.
Like Jun Cho, current CTO Dr. Skott Ahn will be taking on an unspecified “new position in LG Corp.”, whereas the leader of LG’s global marketing efforts for the past two years is actually looking at a promotion to the post of Western Europe operations president. His replacement, Han Chang-hee, previously supervised appliance marketing communications.
Let’s hope this reshuffled executive structure can make next year’s LG G7 and V40 more successful than their predecessors, because you can’t survive in the red forever.