Samsung CEO Steps Down Despite Record Profits, Warns Of “Unprecedented Crisis”
by Tyler Durden
ZeroHedge.com
Oct 13, 2017
In a surprise move – and just months after the grandson of the company’s founder was jailed for corruption – the CEO of Samsung, Kwon Oh-hyun has resigned ‘to make way for new leadership’. In an odd turn of events, despite record profits, Kwon warned the company faces an “unprecedented crisis.”
Kwon had emerged as the public face of Samsung Electronics after Jay Y. Lee, grandson of the company’s founder, was detained on corruption charges and then sentenced to five years in prison in August amid a scandal that brought down South Korea’s president.
As Bloomberg reports, Kwon Oh-hyun, who also serves as co-vice chairman, announced his retirement on Friday as the Suwon-based company reported record operating income of 14.5 trillion won ($12.8 billion) on booming demand for displays and memory chips.
He said the company faces an “unprecedented crisis” despite the financial success.
“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,” Kwon said in the statement.
While the latest financial results show Samsung’s business units operating smoothly, that in itself may present risks for Kwon, said Park Ju-gun, who tracks corporate executives at CEOScore.
“Nobody wants to be the chief of Samsung Electronics at a time like this; it’s too risky,” said Park.
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