Don't Slam the Door: Samsung Stable Despite CEO Departure

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

(LEAD) Samsung Electronics CEO Kwon Oh-hyun to retire after March 2018

Samsung will lose another major executive soon.

The announcement of Kwon's resignation comes as a surprise and his reason for leaving is a bit vague.

Kwon will leave the company in March, when his term as chairman of Samsung Electronics ends. Kwon wrote in a letter to employees. "It has not been an easy decision, but I feel I can no longer put it off".

Kwon had emerged as the public face of Samsung Electronics after Jay Y Lee, grandson of the company's founder, was detained on corruption charges and then sentenced to five years in prison in August amid a scandal that brought down South Korea's president.

"He's been working for the position for long time, it's natural transition", Kim said. The move came on Fridayas the smartphone maker forecast recorded Q3 operating profit because of the memory chip business, which Kwon was instrumental in building the company into the world leader.

Samsung expects sales in the three months ended September 30 to hit 62 trillion won ($54.9 billion). Before he became one of Samsung's CEOs in 2012, he also served as the president and head of both the System LSI Division and the Semiconductor Business.

Analysts forecast Samsung's 2017 net income almost doubled from 2016.

Despite posting record revenue for the quarter, electronics giant Samsung is struggling. Quarterly profits are forecast at 14.5 trillion won ($12.8 billion), an increase of almost 300% over the previous year.

With Kwon's resignation, there's uncertainty with the leadership at Samsung.

Chung Sun-sup, chief executive of research firm Chaebul.com, added that concern about lack of leadership at a time when Lee is absent from management is evident, adding that the leadership changes also could be an opportunity for a new generation to emerge. Gee-sung stepped down after it become know he was allegedly involved in Lee's bribery scandal, according to Reuters. Samsung's shares fell about 1.5 per cent on Friday in Seoul. Kwon has served as a vice chairman at Samsung Electronics since 2012 and also served as a senior executive at the company's display division since previous year.

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