Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-hyun plans to step down from administration, deepening concerns over a administration vacuum on the tech large after group scion Jay Y. Lee was jailed for bribery.

The shock resignation of Samsung’s chip and present head bought right here as he was anticipated to take a a lot larger perform following Lee’s arrest in February and the departures of various key executives throughout the wake of the bribery scandal.

The switch bought right here on the equivalent day the South Korean smartphone maker forecast report third-quarter working income on the once more of the memory chip enterprise which Kwon was instrumental in setting up into the world chief.

“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,” said Park Ju-gun, head of study company CEO Score.

Kwon, 64, is seen as Samsung Group No. 2. As correctly as being chairman of the board and a board director, he heads the weather enterprise – along with memory chips – and the present enterprise.

In an announcement, the individual recognized as “Mr Chip” said the time had come to “start anew with new sprit 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,” he added.

The world’s largest maker of memory chips, smartphones and TVs is about to smash its annual income report this yr, thanks partly to hovering demand for memory chips. Semiconductors have been Samsung’s prime earner throughout the three months by means of June, making a report 8 trillion acquired ($7.20 billion).

The world chip commerce is current course of a major shift with Japan’s Toshiba Corp partnering with residence rival SK Hynix, and totally different firms consolidating searching for new improvement areas like artificial intelligence and automobiles.

Shares in Samsung, worth about $350 billion (roughly Rs. 22,72,017 crores), fell zero.6 % on Friday after hitting an all-time extreme earlier throughout the day.

Changing the outdated guard
The departure of 32-year Samsung veteran Kwon after five years throughout the prime job comes at a time of administration uncertainty on the agency.

Choi Gee-sung, Jay Lee’s mentor, cease earlier this yr for his alleged perform throughout the bribery scandal, and Samsung Electronics now should fill a lot of further key roles with Kwon’s exit.

Kwon would serve out his time interval as chairman of the board and board director until March 2018, the company said. He will also be not stepping down immediately from his two totally different roles.

A Samsung Electronics spokeswoman declined contact upon the exact timing of succession and potential successors for Kwon’s roles.

While Samsung Group is South Korea’s prime conglomerate with firms ranging from smartphones to resorts – it has had no ‘Plan B’ for taking huge selections following Lee’s arrest, people conversant within the matter have said.

“I’m worried about a leadership vacuum at a time when Lee is absent from management,” Chung Sun-sup, chief authorities of study company Chaebul.com, said following Kwon’s announcement.

The administration modifications moreover could very effectively be an opportunity for a model new expertise to emerge, he added.

© Thomson Reuters 2017


Like what you read? Follow us on Facebook, Follow us on Twitter, Follow us on Instagram and Subscribe by means of FeedBurner.


Enter your e-mail sort out:

Delivered by FeedBurner

Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-hyun plans to step down from administration, deepening concerns over a administration vacuum on the tech large after group scion Jay Y. Lee was jailed for bribery.

The shock resignation of Samsung’s chip and present head bought right here as he was anticipated to take a a lot larger perform following Lee’s arrest in February and the departures of various key executives throughout the wake of the bribery scandal.

The switch bought right here on the equivalent day the South Korean smartphone maker forecast report third-quarter working income on the once more of the memory chip enterprise which Kwon was instrumental in setting up into the world chief.

“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,” said Park Ju-gun, head of study company CEO Score.

Kwon, 64, is seen as Samsung Group No. 2. As correctly as being chairman of the board and a board director, he heads the weather enterprise – along with memory chips – and the present enterprise.

In an announcement, the individual recognized as “Mr Chip” said the time had come to “start anew with new sprit 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,” he added.

The world’s largest maker of memory chips, smartphones and TVs is about to smash its annual income report this yr, thanks partly to hovering demand for memory chips. Semiconductors have been Samsung’s prime earner throughout the three months by means of June, making a report 8 trillion acquired ($7.20 billion).

The world chip commerce is current course of a major shift with Japan’s Toshiba Corp partnering with residence rival SK Hynix, and totally different firms consolidating searching for new improvement areas like artificial intelligence and automobiles.

Shares in Samsung, worth about $350 billion (roughly Rs. 22,72,017 crores), fell zero.6 % on Friday after hitting an all-time extreme earlier throughout the day.

Changing the outdated guard
The departure of 32-year Samsung veteran Kwon after five years throughout the prime job comes at a time of administration uncertainty on the agency.

Choi Gee-sung, Jay Lee’s mentor, cease earlier this yr for his alleged perform throughout the bribery scandal, and Samsung Electronics now should fill a lot of further key roles with Kwon’s exit.

Kwon would serve out his time interval as chairman of the board and board director until March 2018, the company said. He will also be not stepping down immediately from his two totally different roles.

A Samsung Electronics spokeswoman declined contact upon the exact timing of succession and potential successors for Kwon’s roles.

While Samsung Group is South Korea’s prime conglomerate with firms ranging from smartphones to resorts – it has had no ‘Plan B’ for taking huge selections following Lee’s arrest, people conversant within the matter have said.

“I’m worried about a leadership vacuum at a time when Lee is absent from management,” Chung Sun-sup, chief authorities of study company Chaebul.com, said following Kwon’s announcement.

The administration modifications moreover could very effectively be an opportunity for a model new expertise to emerge, he added.

© Thomson Reuters 2017


Like what you read? Follow us on Facebook, Follow us on Twitter, Follow us on Instagram and Subscribe by means of FeedBurner.


Enter your e-mail sort out:

Delivered by FeedBurner