After posting record profit, Samsung CEO resigns

Oct 14, 2017, 00:24
After posting record profit, Samsung CEO resigns

In a letter to employees, Kwon noted that as the firm is "confronted with unprecedented crisis inside out, I believe that time has now come for the company start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry".

With its de facto leader gone, Samsung is clearly struggling at an executive level - and now it has lost vice chair and chief executive Kwon Oh-hyun, generally regarded as the second-most important person at the company behind Lee Jae-yong.

Lee's father, Lee Kun-hee, who still retains the chairman title, has been bedridden since 2014 due to health problems, and Lee Jae-yong was sentenced to five years in prison in August for bribing former President Park Geun-hye.

Samsung Electronics said Kwon plans to deliver his intention to Lee in the near future and recommend a successor. "It has not been an easy decision, but I feel I can no longer put it off", said Kwon.

Previously, the company Samsung for the first time surpassed Apple in terms of revenue for the three months.

Sales are expected to have surged 29.65 percent year-on-year to 62 trillion won, with the booming semiconductor business boosting the company's bottom line.

"The results are good ones that largely meet market expectations", Dongbu Securities Co analyst Kwon Sung-ryul said.

"We are fortunately making record earnings right now, but this is the fruit of past decisions and investments", he stated. While Samsung was battered past year following the Galaxy Note 7 debacle, it seems to have bounced back and will soon announce a much rosier financial position.

But Samsung did not celebrate the news for long, following up the rosy earnings guidance by announcing the resignation of a top executive. Samsung Electronics has not yet announced a replacement. He also has served as the CEO of Samsung Display since 2016. Before he became one of Samsung's CEOs in 2012, he also served as the president and head of both the System LSI Division and the Semiconductor Business.

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