Edition: United States  
One News Page
“Probably the fastest-access news portal in the world”
> >

Samsung CEO Steps Down Despite Record Profits, Warns Of "Unprecedented Crisis"

Zero Hedge Friday, 13 October 2017 ()
Samsung CEO Steps Down Despite Record Profits, Warns Of Unprecedented CrisisIn 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.

The share price slipped on the news...

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.

*“It puts that person at odds with the controlling family. Only when he is in the shadow is he playing his role properly.”*

Despite the trial, the company’s business has remained robust, helped by strong demand for memory chips.

*“It’s the chip prices that are driving up the profit rather than the sales volumes,”* said Park Kang-ho, an analyst at Daishin Securities. “We’re expecting an operating profit of about 16 trillion won in the next quarter.”
Share on
Share on
Post on 
Share by
Source: Business Video Online - < > Embed

News video: Samsung boss resigns over "unprecedented crisis"

Samsung boss resigns over "unprecedented crisis" 01:04

Samsung Electronics CEO Kwon Oh-hyun announces shock resignation as the company's profits surge. Sara Hemrajani reports.

Recent related news

Samsung’s CEO Resigns Citing Unprecedented Crisis

Samsung’s CEO Resigns Citing Unprecedented Crisis
Samsung’s CEO Kwon Oh-Hyun has just announced his resignation citing an unprecedented crisis that’s most likely linked to corruption charges and indictment...
Softpedia - Technology

Samsung Electronics CEO announces resignation as company forecasts record profits

Longtime Apple "frenemy" Samsung Electronics on Friday local time said CEO and Vice Chairman Kwon Oh-hyun will resign from management effective March 2018. The...
AppleInsider - Computer IndustryAlso reported by •Wall Street Journal

Samsung's Leadership Crisis Deepens as CEO Plans Exit

The head of Samsung Electronics’ components business plans to resign, in a surprise move as the departing leader acknowledged the firm faces an...
Wall Street Journal - Business

Samsung Are More Popular Than Ever - So Why Has The CEO Just Quit?

Samsung Are More Popular Than Ever - So Why Has The CEO Just Quit?
by Graham Pierrepoint - Samsung have had a bit of a rollercoaster 18 months. 2016 was arguably a dark year for the tech brand, who continues to lead in the...
One News Page Staff - Technology

You Might Like

Other recent news in Markets

SENATE PASSES 2018 Budget Paving Way For $1.5 Trillion In Tax Cuts, Sending Yields, Dollar Sharply HigherDAX Rises As US SENATE Passes Budget
Sberbank, RUSSIA’s Largest State-Owned Bank, is Eyeing Ethereum IntegrationVLADIMIR PUTIN: "Don't Back North Korea Into A Corner"
Democrat Wilson Slams JOHN KELLY's "Empty Barrel" Comment: "This Has Become Totally Personal""I Was Stunned, Brokenhearted": GENERAL KELLY Defends Trump, Blasts Congresswoman For "Selfish Behavior"
LAPD Opens Rape Investigation Into HARVEY WEINSTEINAre Australia and NEW ZEALAND Banking Group shares a buy?
Two Day Planning, Forecasting and Budgeting Course (London, UNITED KINGDOM - June 7th-8th, 2018) - Research and MarketsSOUTH KOREA does a sudden U-turn on nuclear power


Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+