Samsung Electronics CEO resigns over 'unprecedented crisis'

Otis Hoffman
October 15, 2017

"Because we are faced with an unprecedented crisis, I believe that the time has come, to a company headed by new leadership in order to better respond to the challenges arising in the rapidly changing IT industry", he said.

Kwon had emerged as the public face of after Jay Y Lee, grandson of the company's founder, was detained on corruption charges and then sentenced to five years in prison in August amid a scandal that brought down South Korea's president.

Ahead of the announcement from Mr Kwon, Samsung Electronics said it would report a record quarterly profits thanks to surging chip prices.

"We are fortunately making record earnings right now, but this is the fruit of past decisions and investments; we are not able to even get close to finding new growth engines by reading future trends right now", Kwon said in a statement. Oh-Hyun Kwon will leave not only that post but also his positions as CEO of Samsung Display, head of the company's components arm, and Vice Chairman.

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Kwon, also known as Mr. Chip, was in charge of Samsung's component business.

Kwon joined the company in 1985 as a researcher of the company's Semiconductor Research Institute in the United States.

Samsung shares were trading at a new record high of 2.74 million won as of Thursday, as investors bet on record earnings in 2017 driven by growing demand for memory chips with ever greater processing power. He also has served as the CEO of Samsung Display since 2016.

With Kwon's resignation, there's uncertainty with the leadership at Samsung.

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Samsung expects to pull in 62 trillion won ($54.9 billion) in revenue and 14.5 trillion won ($12.8 billion) in profit for the three months ending September 30, a near 300% increase in profit compared to the same period past year. "Nobody wants to be the chief of Samsung at a time like this; it's too risky", said Park. Gee-sung stepped down after it become know he was allegedly involved in Lee's bribery scandal, according to Reuters.

Samsung Electronics' CEO has announced his surprise resignation from the company.

Kwon's current term ends on March 2018 but said he wouldn't be seeking a re-election at that point in time.

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Other reports by Info About Network

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