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Samsung CEO Resigned : Crisis in the Company | Business

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Samsung CEO Resigned: Reason was Crisis in the Company

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SEOUL (Reuters) – Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-Hyun plans to step down from management, deepening concerns over a leadership vacuum at the tech giant after group scion Jayy. Lee was jailed for bribery.

WHY IS IT A SURPRISE RESIGNATION?

Kwon was expected to take a bigger role following Lee’s arrest in February and interestingly, his resignation came on the same day when Samsung forecast record third-quarter operating profit.

Park Ju-gun, head of research firm CEO Score said:

“The timing is nonsensical. 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.”

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The move came on the same day the South Korean smartphone maker forecast record third-quarter operating profit on the back of the memory chip business which Kwon was instrumental in building into the world leader.

Kwon Oh-Hyun Samsung Group No. 2 as it is the head of the business of components – including the memory chip and display business, he is also the chairman of the board and is the board director.

In a statement, the man is known as “Mr. Chip” said the time had come to “start anew with a new spirit and young leadership”.

“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, 64, has been Samsung Electronics CEO since 2012 and was named Samsung Display CEO in 2016. He joined the company in 1985, rising to lead its semiconductor business before his appointment as CEO. Samsung hasn’t announced a successor, although Kwon has had two “co-CEOs”, BK Yoon and JK Shin, in the past. Both stepped back from day-to-day operations in 2015, however, retaining their titles.

 

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