Samsung Electronics CEO to Step Down

Samsung Electronics CEO to Step Down

In a letter to the staff, Samsung CEO said, "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".

The company forecast bumper quarterly earnings on Friday, putting it on track to post a record operating profit for the period.

The chairman of Samsung Electronics' board of directors and one of the company's three chief executive officers says he will resign next year.

Kwon Oh-hyun Kwon will step down when his tenure expires in March 2018. "But now the company needs a new leader more than ever and it is time for me to move to the next chapter of my life", he said in the letter.

Mr Lim said "the current management structure seems to be a complicated web that does not clarify, but rather confuses".

"The release of new models, including the iPhone X by rival Apple Inc., could weigh down on the mobile business, but it will at the same time help Samsung's parts business", said Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities a report.

The 60 company strong Samsung conglomerate it undoubtedly weathering a severe management crisis.

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In August, the group's heir apparent Lee Jae-yong was convicted of bribery and corruption and sentenced to five years in jail.

He was accused of giving KRW 41bn (£29m) of donations to nonprofit organisations run by Choi Soon-sil - a close friend of former president Park - in return for political favours. Kwon is also leaving his position as chief executive of Samsung Display, which he has held since 2016.

Before Kwon's resignation, it projected operating profit had nearly tripled year-on-year in the three months to the end of September to KRW 14.5trn.

Samsung raked in 8.03 trillion won from the chip business in the April-June period in operating profit, along with 4.06 trillion won from the mobile arm.

While memory chips were the main driver of Samsung's profits, its mobile phone business was given a boost by its new Note 8 smartphone which received the firm's highest number of pre-orders.

He will miss another record earnings announcement expected in the fourth quarter as he is expected to stay in prison at least until February, when the appellate court hearing his case is likely to try to rule on the bribery suit. Ovum's Mr Milroy said the market was slowing and despite record results the company "faces a lot of risk".

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