Samsung CEO Kwon Oh-hyun resigns amid strong guidance for Q3
- Author: Eleanor Harrison Oct 14, 2017,
Oct 14, 2017, 0:23
In a letter sent to all employees, Kwon said that announcing his retirement was the most hard thing for him to do, but now was the right time and that he believes his decision is in the best interest of the company.
That crisis is believed to be related to the ongoing bribery scandal surrounding Samsung, which recently saw the arrest of the company's heir and vice chairman Lee Jae-yong (also known as Jay Y Lee). Lee was found guilty of bribery and other corruption charges in August. "It has not been an easy decision, but I feel I can no longer put it off", Kwon said in an English statement.
"I am anxious about a leadership vacuum at a time when Lee is absent from management", said Mr Chung Sun Sup, chief executive of research firm Chaebul.com, following Mr Kwon's announcement.
His departure from office Oh-Hyun Kwon explained, "an unprecedented crisis", saying that the company in the current environment should lead to new leadership.
"The results are good ones that largely meet market expectations", Dongbu Securities Co analyst Kwon Sung-ryul said.
But Samsung did not celebrate the news for long, following up the rosy earnings guidance by announcing the resignation of a top executive.
"We are fortunately making record earnings right now, but this is the fruit of past decisions and investments", he stated. Kwon will leave the company in March 2018.
Despite what Kwon characterizes as a management "crisis", Samsung is doing pretty well financially. The leadership shakeups appear to have had little impact on Samsung's business, however, with the company forecasting a banner third quarter of $12.81 billion in operating profit.
Yonhap Infomax data, based on research from 21 securities firms, also showed Samsung is expected to post an operating profit of 16 trillion won in the fourth quarter, up 74 percent from a year earlier.
Kwon joined Samsung in 1985 as a researcher in the company's Semiconductor Research Institute in the United States.
He played a major role in strengthening Samsung Electronics' position in the memory chips business across the world.