News Worms
News Worms

Samsung Electronics CEO Announces Resignation Amid 'Unprecedented Crisis'

Samsung Electronics CEO Announces Resignation Amid 'Unprecedented Crisis'

"Because we are faced with an unprecedented crisis, I believe that the time has come, to a company headed by new leadership in order to better respond to the challenges arising in the rapidly changing IT industry", he said.

In an emotional letter sent to all employees, Kwon said that while announcing his retirement was the most hard thing for him to do, he believed it was the right time and in the best interest of the company, amid continuing controversy around Samsung vice-chairman Lee Jae-yong, arrested on charges of bribery. Oh-Hyun Kwon will leave not only that post but also his positions as CEO of Samsung Display, head of the company's components arm, and Vice Chairman.

Lee, who was found guilty in August of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-hye's secret confidante Choi Soon-sil, is appealing his five-year sentence.

Samsung announced yesterday that Kwon Oh-hyun will be resigning as the one of the company's CEOs. "It has not been an easy decision, but I feel I can no longer put it off", Kwon said in an English statement.

"[Samsung] has been showing record performances", Kwon said.

But Samsung did not celebrate the news for long, following up the rosy earnings guidance by announcing the resignation of a top executive.

Kwon's resignation announcement arrived the same day that Samsung predicted record profits for the second straight quarter.

Despite what Kwon characterizes as a management "crisis", Samsung is doing pretty well financially.

"We are fortunately making record earnings right now, but this is the fruit of past decisions and investments", he stated. Lee Jae-yong was widely expected to succeed his father as head of the group.

Yet, Kwon insists that the strong profits don't reflect the current state of the company. Kwon eventually became the CEO of Samsung Display in 2016.

However, Samsung's legitimate business would appear to be ticking over nicely, with the company revealing its financial forecasts for the rest of the year.


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