Samsung CEO steps down after forecasting Record Earnings

Samsung Electronics CEO Kwon Oh-Hyun Resigns, Says Company is Facing an 'Unprecedented Crisis'

"Samsung tipped record earnings, it's going to be better in the fourth-quarter, and all that's been driven by Kwon's components business", said Park Ju-gun, head of CEO Score.

His decision to resign comes at a time when the company tries to clean up its reputation amidst bribery case. A day earlier, Samsung's heir apparent Lee Jae-yong began a court appeal of his five-year jail sentence on charges that he won political favor through bribes paid to non-profit foundations.

"As we are 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", he wrote.

But the chip and display divisions led by Kwon fueled Samsung's stunning profit growth this year.

"There are no words to describe how proud I am that we built together one of the most valuable companies in the world".


"He's been working for the position for long time, it's natural transition", Kim said.

The company forecast bumper quarterly earnings on Friday, putting it on track to post a record operating profit for the period. 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. Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities Co., said in a report that the release of new models, including the iPhone X by rival Apple Inc., could weigh on Samsung's mobile sales, but will also help its smartphones parts business.

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

Kwon's resignation won't take into effect until March 2018, but Samsung will now have to find replacements to fill in the vacant roles in the company. Kwon has served as a vice chairman at Samsung Electronics since 2012 and also served as a senior executive at the company's display division since a year ago. Samsung's shares fell about 1.5 per cent on Friday in Seoul.

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