Samsung Electronics CEO resigns, says company is in "unprecedented crisis" ars_ab.settitle(1186199)

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

Kwon plans to resign as head of Samsung's semiconductor and component business and will not seek re-election on the company's board when his term expires in March, Samsung said in a statement.

His decision to resign comes at a time when the company tries to clean up its reputation amidst bribery case.

The "unprecedented crisis" is apparently a reference to Samsung Group's de facto leader and Vice Chairman, Lee Jae-yong (aka, Jay Y. Lee) being sentenced to five years in prison after being found guilty of bribery, embezzlement, capital flight, and perjury charges.

He continued: "As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company [to] start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry".

But Samsung did not celebrate the news for long, following up the rosy earnings guidance by announcing the resignation of a top executive. Chairman Lee Kun-hee, who transformed the company from a copycat appliance maker to a global technology leader, said in 2010 that Samsung was entering a "real crisis", just after the company achieved record annual sales of more than 130 trillion won.

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Kwon first joined Samsung back in 1985 as a researcher of the company's Semiconductor Research Institute in the US.

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

He's stepping down even though Samsung's business remains robust.

Despite posting record revenue for the quarter, electronics giant Samsung is struggling. Kwon eventually became the CEO of Samsung Display in 2016. But in a sign of good news for the company, its estimated operating profits for the July-September period of 14.5 trillion won ($12.8 billion) marked a record for quarterly profit, almost tripling the 5.2 trillion won earned a year earlier. But it also announced the resignation of a key executive, Kwon Oh-hyu. Samsung's shares fell about 1.5 per cent on Friday in Seoul.

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