LG Electronics, the world's third-biggest mobile phone maker¹, has replaced its chief executive after record losses at its handset business.

LG电子，世界上第三大移动电话生产商，因其手机事业部创记录的损失而被迫更换董事长。

Nam Yong will be replaced by Koo Bon-joon, the brother of the chairman of parent company LG Group.

Mr Nam offered to resign "to take responsibility for the flagging（下垂的，衰弱的） performance", LG Group said.

Nokia has also replaced its chief. Both firms have been under pressure in the competitive smartphone market.

Last week, Finland's Nokia announced that Microsoft business manager Stephen Elop would replace Olli-Pekka Kallasvuo as its chief executive.

Days later, the head of Nokia's mobile business also resigned.

'Time to prepare'

South Korea's LG Electronics saw profits plunge² 90% in the second quarter. Its handset business made an operating loss of 120bn won ($103m; £66m).

Mr Koo, who has served as an executive in various LG Group subsidiaries（子公司） , will take over on 1 October.

Management changes are usually made at the end of the year, but LG said: "We made the decision to give an incoming chief executive enough time to prepare for next year."

Investors³ appeared to welcome the change, with LG Electronics shares closing 4.7% higher.

"Koo is expected to reshuffle the organisation⁴ and actively⁵ cope with the fast-changing IT industry," said Lee Yong-jik from AIG Investments in Seoul.

"LG is expected to narrow the gap with Apple and other leading smartphone makers⁶."