LG Electronics CEO, Yong Nam, has recently stepped down and according to speculations, it is likely due to the company’s poor sales of mobile phones. Nam was asked to leave immediately, though that wasn’t reported on LG’s website.

Yong Nam, LG CEO, has recently stepped down and the position is going to be filled by Bon-joon Koo, who is currently the CEO of LG International, the trading arm of LG. According to online sources, Koo will assume the role of LG Electronics CEO on 1 Oct.

No reason was stated on Nam’s resignation, although analysts believed the reason could be because of the company’s poor financial status. While most of the company’s divisions showed positive sales growth, the Mobile Communications group – which includes smartphones – recorded a year-over-year sales decline of 29.5 percent, according to quarterly figures reported on 28 July.

Interestingly, Nokia has also announced its CEO Olli-Pekka Kallasvuo will be replaced by Stephen Elop, who was head of Microsoft’s business software group. And that could also be due to similar reason to the Korean manufacturer.

Source: PC Magazine