Samsung Electronics Co CEO resigns

Samsung Electronics Co CEO resigns

Samsung did not announce the performance estimates of each business division but its semiconductor business is widely believed to have contributed greatly to the record-beating report.

Samsung will lose another major executive soon.

But in his resignation letter Kwon explained that because Samsung is facing "unprecedented crisis inside out", the time has come for the company to "start anew, with a new spirit and young leadership".

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. Kwon was expected to take a bigger role after the arrest of scion and heir apparent of Samsung Group, Jay Y Lee.

Kwon was named CEO in 2012, and had been leading the multi-faceted electronics juggernaut since Lee's sentencing in August; he'd joined Samsung in 1985.


The move comes just as Samsung has announced record profits, thanks largely to its memory chip business, prompting one industry analysts to describe its timing as "nonsensical".

Operating profit was estimated at 14.5 trillion won ($12.8 billion), compared with 5.2 trillion won tallied a year earlier, the company said in a regulatory filing. "It has not been an easy decision, but I feel I can no longer put it off", said Kwon. Sales jumped 30 per cent to 62 trillion won ($54.7 billion). The boom allowed Samsung to dethrone Intel Corp., the long-time global chip leader, in the second quarter and has yielded record earnings for smaller chip rivals such as SK Hynix.

The company has a league of executives who manage day-to-day operations, but has usually relied on the leadership and the visions of founding family members for direction.

Kwon's tenure expires in March 2018, Yonhap news agency reported.

Lee was arrested over allegations of inappropriate payments to South Korea's former president Park Geun-hye, via front companies connected to the disgraced politician, whose residence is now Seoul Detention Center. That is Lee Kun-hee, son of the company's founder and Lee Jae-yong's father. His lawyers are now appealing the conviction.

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