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

Oct 15, 2017, 01:01
Samsung Forecasts Record Q3 Profits As CEO Announces Resignation Amid 'Unprecedented Crisis'

That is cause for celebration, though in a separate announcement, Vice Chairman and Chief Executive Officer Kwon Oh-hyun said it he plans to resign next year due an "unprecedented crisis" at Samsung. He also served as president and head of the System LSI Division and as president and head of the Semiconductor Business before becoming CEO of the company in 2012.

It comes just six weeks after the billionaire heir to the Samsung empire - Lee Jae-yong - was jailed for five years after being convicted of offering bribes to South Korea's former president, Park Geun-hye.

Kwon is reportedly known as "Mr Chip" in the company, and is credited with the growth of Samsung as a chip and memory component maker.

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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. While the latest financial results show Samsung's business units operating smoothly, that in itself may present risks for Kwon, said Park Ju-gun, who tracks corporate executives at CEOScore.

Mr Kwon said he had been thinking about his departure "for quite some time" and could "no longer put it off".

"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.

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"Now (Frankfurt: 11N.F - news), the company needs a new leader more than ever and it is time for me to move to the next chapter of my life". "There are no words to describe how proud I am that we built together one of the most valuable companies in the world". But it could also encompass Samsung's recall fiasco with the Note7 smartphone a year ago, with the flagship smartphone having to be pulled off of market shelves due to a fire hazard with its charging mechanism.

He's stepping down even though Samsung's business remains robust. Gee-sung stepped down after it become know he was allegedly involved in Lee's bribery scandal, according to Reuters.

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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