Samsung CEO resigns despite record profit

Samsung CEO resigns despite record profit
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South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Strong chip sales

Samsung’s third quarter’s preliminary results were very positive: the company targets a 14 trillion won (10.8 billion euro) operational profit, another record and huge increase compared to last year’s results (at 5.2 trillion won – 3.9 billion euro). Turnover should grow from 47.82 trillion won 62 trillion won (35.8 to 46.4 billion euro).

 

That strong surge is entirely thanks to the chip industry. Chip sales are now incredibly high and seeing how Samsung is one of the world’s largest chip-manufacturing companies, it is now reaping the rewards.

 

“Start anew”

Despite the good news, CEO Kwon Oh-hyun, who was in charge of Samsung’s electronics division, has decided to leave the company in March 2018. “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 from the rapidly changing IT industry”, he said in a letter.

 

He also points to the difficult situation for the company, which probably refers to the 5-year prison sentence chairman Lee Jae-yong received for his part in a corruption scandal.

 

The news related to Kwon Oh-hyun, who has been with Samsung since 1985, cast a shadow over the good news. Despite the record numbers, its share still dropped slightly.

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