CEO resigns as bribery scandal rocks Samsung

Samsung Electronics CEO Kwon Oh-Hyun Resigns, Says Company is Facing an 'Unprecedented Crisis'

"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", Oh-hyun said in a letter to Samsung employees, a copy of which was obtained by The Telegraph. We're not talking about the company's self-described "dismal state", or another Galaxy Note device gone up-in-flames, or the tech-giant's latest debacle, which saw its chairman Lee Jae-yong imprisoned for five years following his sentencing on charges of bribery, corruption, and perjury. Kwon, a semiconductor engineer, has met with President Moon Jae-in and attended events both at home and overseas since Lee was detained in February on corruption charges.

"Samsung tipped record earnings, it is going to be better in the fourth quarter, and all that has been driven by Mr Kwon's components business", said Mr Park Ju Gun, head of research firm CEO Score. While Lee Kun-hee is expected to keep the title of "Chairman" for life, medical issues have caused him to step away from Samsung, and Lee Jae-yong had been running the company since 2014. Samsung hasn't given out information on the timing of succession, nor did it share who will take on Kwon's responsibilities when he leaves next year. For the third quarter of 2017, Samsung expects to make around 14.5 trillion won (around $12.8 billion) in operating profit off 62 trillion won (around $54.7 billion) in revenue, according to The Verge. Quarterly profits are forecast at 14.5 trillion won ($12.8 billion), an increase of almost 300% over the previous year.

Kwon would serve out his term as chairman of the board and board director until March 2018, the company said.

Samsung Electronics says its third-quarter profit likely surged almost three-fold over a year earlier to a new record high. Samsung also leads in the next generation of screens called organic light-emitting diode (OLED), supplying them to Apple and other smartphone makers, even as it competes for dominance in the global market.

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