Samsung Electronics Co. said Friday its Vice Chairman and chief executive officer Kwon Oh-hyun will not extend his current tenure in office, which expires in March 2018. "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", said Park Ju-gun, head of research firm CEO Score.
His decision to resign comes at a time when the company tries to clean up its reputation amidst bribery case.
We will remind, in August of 2017 49-year-old Vice President of Samsung Electronics and heir to the Samsung Empire, Lee Jae-Yong was convicted by the Seoul court of corruption and breach of trust and sentenced to five years imprisonment.
"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 in the rapidly changing IT industry", Kwon Oh-hyun, 65, said in a letter to employees. Quarterly profits are forecast at 14.5 trillion won ($12.8 billion), an increase of almost 300% over the previous year. The company is also expected to generate 62 trillion won or $54.7 billion in revenue. The company is set to release its final earnings report later this month.
Samsung has two other CEOs, each overseeing its mobile phone business and home appliance division. It was a year ago that the company had to recall its Galaxy Note 7 but it seems the company has now recovered, also in light of its recent Galaxy Note 8 launch.
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"The results are good ones that largely meet market expectations", Kwon Sung-Ryul of Dongbu Securities told AFP.
Samsung posted an operating profit of 5.2 trillion won or $4.5 billion in the third quarter of fiscal year 2016. Rising sales of its flagship Galaxy S8 and Galaxy Note 8 smartphones were also believed to have bolstered the profitability of the mobile division, analysts said.
Kwon first joined Samsung Electronics in 1985.
Analysts forecast Samsung's 2017 net income almost doubled from 2016.