Samsung scion Jay Y. Lee given 5-year jail sentence for bribery

Samsung Electronics introduced on Friday that its CEO and vice-chairman Kwon Oh-hyun has resigned from his place within the newest administration turmoil within the tech big after inheritor of all the Samsung Group, Jay Y Lee, was jailed for bribery in August.

The firm mentioned Kwon, who’s one among three co-chief executives of Samsung Electronics, wouldn’t search re-election as a member of the Board of Directors and the Chairman of the Board when his time period ends in March 2018.

Kwon’s shock resignation got here on the identical day Samsung forecast a report third-quarter working revenue, citing robust reminiscence chip costs.

Samsung CEO

Kwon Oh-Hyun, co-chief government officer of Samsung Electronics Co., speaks in the course of the firm’s annual basic assembly on the Seocho workplace constructing in Seoul, South Korea, March 24, 2017.REUTERS/SeongJoon Cho/Pool/File Photo

The 64-year-old Kwon, who was anticipated to take a much bigger function following Lee’s arrest in February, was heading the corporate’s elements enterprise, together with reminiscence chips, and the show enterprise.

In an announcement, Kwon mentioned he had been fascinated about quitting “for quite some time” and will “no longer put it off”.

“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, also called “Mr Chip,” mentioned within the assertion.

Leadership disaster

Some analysts reportedly mentioned the timing of Kwon’s departure is “nonsensical” as Samsung is anticipated to report even higher earnings within the fourth quarter, with Kwon’s elements enterprise being the highest contributor.

Kwon, nevertheless, mentioned the corporate has failed to search out new development engines, and it’s in want of a brand new chief now greater than ever.

“We are fortunately making record earnings right now, but this is the fruit of past decisions and investments; we are not able to even get close to finding new growth engines by reading future trends right now,” Reuters quoted Kwon as saying.

Samsung Jay Y. Lee

Samsung Electronics Vice Chairman, Jay Y. Lee, arrives at a courtroom in Seoul, South Korea, October 12, 2017.REUTERS/Kim Hong-Ji

Samsung is certainly in a management disaster scenario, which “needs to be resolved soon as it can be worrying not to know who is truly steering the Samsung behemoth into the future,” Ryan Lim, founding companion of the Singapore expertise consultancy agency QED, instructed BBC.

While Samsung’s troubles have not mirrored on its backside line but, the corporate mentioned it will appoint a successor “soon” to fill the management vacuum.

Record earnings

Ahead of the announcement of Kwon’s resignation, Samsung Electronics mentioned its third-quarter working revenue practically tripled from a yr earlier to a brand new report.

According to the corporate, its working revenue in the course of the interval was seemingly 14.5 trillion received ($12.81 billion), beating market expectations for the quarter.

Earning a report eight trillion received ($7.20 billion), the semiconductor unit was essential driver of Samsung’s earnings whereas its cellular revenue was additionally listed by the recently-launched Galaxy Note eight, pre-orders for which had been the highest-ever for the Note sequence.

Samsung Electronics sees deeper management vacuum after CEO resigns citing 'unprecedented disaster' by: Steve Melvin published:

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