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Samsung Electronics CEO resigns over "unprecedented crisis"

By midian182 ยท 6 replies
Oct 13, 2017 at 7:15 AM
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  1. On the same day that the company forecast record quarterly profits, Samsung’s chief executive officer and vice chairman, Oh-Hyun Kwon, has announced his resignation. He called for a change in leadership as the Korean firm faces an “unprecedented crisis inside out.”

    "It is something I had been thinking long and hard about for quite some time. It has not been an easy decision, but I feel I can no longer put it off," Kwon said in a letter to employees. "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."

    A few hours before Kwon dropped the bombshell, Samsung Electronics said it expected profits for the last quarter to be at an all-time high, mostly thanks to the increase in memory chip prices. The company has forecast a profit of 14.5 trillion won (around $12.81 billion), beating market expectations with a 179 percent YoY increase. Sales of the Note 8, which received more pre-orders than any other phone in the Note line, also helped boost the numbers.

    The “crisis” Kwon is referring to is the arrest and imprisonment of Lee Jae-yong, Samsung Electronics group’s heir-apparent. Lee was sentenced to five years in prison on bribery and corruption charges in August, following accusations he was involved in a massive scandal that led to the ousting of former South Korean President Park Geun Hye.

    Kwon, who joined the firm in 1985 and has been Samsung Electronics' CEO since 2012, will remain on the company’s board until March 2018. A Samsung spokesperson said a successor would be appointed “soon,” but gave no specifics.

    Permalink to story.

     
  2. Brock Kane

    Brock Kane TS Addict Posts: 154   +76

    What, he realized he has way too much money?
     
  3. Uncle Al

    Uncle Al TS Evangelist Posts: 3,084   +1,762

    Much like Japan, leaders and notable figures in S. Korea consider "loosing face" as the ultimate decline of a person's worth so his resignation is not that surprising BUT, it does suggest that he also was a willing participant and we might see him face charges next .... too soon to tell. I guess the good news out of this is that they still have a soul and feel guilt .... something American executives should try .... of course here they tend to jump off buildings so the citizens of NYC better take some darn sturdy umbrella's out with them!
     
  4. NahNood

    NahNood TS Enthusiast Posts: 53   +15

    Tired of fighting with Apple?
     
  5. ddferrari

    ddferrari TS Maniac Posts: 305   +137

    All the wrong people are wealthy. If I had millions/hundreds of millions/billions of dollars I would never feel compelled to cheat. I don't even do that now on a "regular guy" income. I guess wealth breeds narcissism and an empty void (somehow) that can never be sated, for some.
     
    dms96960 likes this.
  6. fidgetwidget

    fidgetwidget TS Rookie

    Very well spoken.
     
  7. Boilerhog146

    Boilerhog146 TS Addict Posts: 259   +66

    Once an exec gets so rich.its no longer about money. It becomes a POWER struggle.the need to feel Godlike!
     

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