Samsung Electronics Co Ltd CEO and Vice Chairman Kwon Oh-Hyun plan to step down from management. The company has announced his retirement leading to a leadership vacuum at the tech giant after group scion Jay Y. Lee was jailed for bribery.
Why Is It A Surprise Resignation?
Kwon was expected to take a bigger role following Lee’s arrest in February and interestingly, his resignation came on the same day when Samsung forecast record third-quarter operating profit.
Park Ju-gun, head of research firm CEO Score said:
“The timing is nonsensical. 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.”
Kwon Was Samsung Group No. 2
Kwon Oh-Hyun was seen as Samsung Group No. 2 as he heads the components business – including memory chips and the display business. He is also chairman of the board and a board director.
Kwon’s Farewell Statement
Kwon said in a statement that the time had come to “start anew with a new spirit and young leadership”.
“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.”