Samsung CEO to quit amid record profits

Samsung Forecasts Record Q3 Profits As CEO Announces Resignation Amid 'Unprecedented Crisis'

Samsung Forecasts Record Q3 Profits As CEO Announces Resignation Amid 'Unprecedented Crisis'

"I believe the time has come for the company to start anew with new spirit and young leadership to better respond to challenges", said Kwon in a statement. Kwon had emerged as the public face of Samsung after Lee Jaeyong, grandson of the company's founder, was detained on corruption charges and then sentenced to five years in prison in August amid ascandal that brought down South Korea's president. Choi Gee-sung, Samsung's chief executive and president at the company's digital media division, also resigned earlier this year.

Lee was arrested for bribery charges in February 2017.

The Telegraph reports that 32-year Samsung veteran Kwon Oh-hyun announced his departure in a letter to staff.

"I want my resignation to be an opportunity for a higher level of challenge and innovation and to overcome this hard situation", Kwon said in the statement.

The "unprecedented crisis" that Kwon may be alluding to is the arrest of Lee Jae-yong, the de facto leader of the Samsung. Samsung hasn't given out information on the timing of succession, nor did it share who will take on Kwon's responsibilities when he leaves next year.

North Korea reportedly hack US-South Korean wartime 'decapitation strike' plans
In May the ministry said North Korea had hacked into Seoul's military intranet but did not say what had been leaked. The drills were conducted not long after Lee broke the news about the alleged cyberattacks to reporters.

Kwon, however, thinks Samsung is in crisis and urgently needs to find new ways to fuel growth before the record-breaking performance resulting from earlier decisions fades.

He added, the company is making record earnings, which are consequences of decisions and investments from the past. "We have come a long way to create a company that truly changes how people live, work and communicate with each other", Kwon said. While Lee Kun-hee is expected to keep the title of "Chairman" for life, medical issues have caused him to step away from Samsung, and Lee Jae-yong had been running the company since 2014.

Kwon will leave the company in March, when his term as chairman of Samsung Electronics ends.

The announcement comes after Samsung gave earnings guidance for a strong third quarter, saying it sees sales rising to KRW 61-63 trillion from 47.8 trillion the year before.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.