Turnaround minimizes LG's year-end reshuffle

By Kim Yoo-chul

Koo Bon-moo LG Group chairman

Cho Sung-jin LG Electronics president

Shin Moon-beom LG Electronics president

Kwak Kook-yeon LG Electronics executive VP

LG Electronics made few changes to the company’s top management in Wednesday’s year-end reshuffle as the Seoul-based consumer electronics giant has shown a business turnaround on the back of impressive demand for high-end electronics products.

The company used to carry out large-scale management reshuffles in some key divisions such as smartphones at the end of the year.

In a statement, the firm said it has promoted 38 executives including two to president, three to executive vice president and seven as senior executives.

The reshuffle suggests that LG Group Chairman Koo Bon-moo, the elder brother of LG Electronics CEO Bon-joon, has given more authority to LG Electronics’ home appliance division by making Cho Sung-jin its president. Shin Moon-beom, the former head of LG’s appliance unit, was also promoted to president of China operations.

Koo Bon-joon made no change to the major posts at LG’s key television and handset businesses with TV chief Kwon Hee-won and mobile head Park Jong-seok still in their current roles.

``If you perform well, then we will promote you,’’ said an LG Group spokesman. ``Mobile chief Park, he boosted the sales of LG’s advanced smartphones,’’ said an unnamed LG executive by telephone.

The minor changes are viewed by many as the LG CEO’s confidence in strengthening the company’s bottom line next year.

Except for its television business, most key units have been struggling due to sluggish consumer spending on electronics and the company’s late response to the booming smartphone market.

But its smartphone business has been showing a mild recovery since the third quarter of this year.

Local brokerage Dongbu Securities said it expects LG to make over 400 billion won operating profit for the first three months of next year as it is confident in the company’s healthy growth in televisions and smartphones.

``LG Electronics will match the market consensus in the fourth quarter with over 200 billion won in operating profit. In televisions, the company will sell more premium sets than expected, while its smartphone sales will rise to over 8 million in the fourth quarter,’’ said Dongbu analyst Kwon Seong-ryeol.