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After posting record profit, Samsung CEO resigns

13 October 2017

"It is something I had been thinking long and hard about for quite some time", Kwon said in a statement.

Kwon has been working as de facto head of the company following the imprisonment of the Samsung heir Lee Jae-yong. Kwon's departure from Samsung makes way for a new management that can finish the company's delayed reshuffle of its top executives.

In a letter sent to all employees, Kwon said that announcing his retirement was the most hard thing for him to do, but now was the right time and that he believes his decision is in the best interest of the company. While Samsung was battered previous year following the Galaxy Note 7 debacle, it seems to have bounced back and will soon announce a much rosier financial position. "It has not been an easy decision, but I feel I can no longer put it off", Kwon was quoted as saying.

"The results are good ones that largely meet market expectations", Dongbu Securities Co analyst Kwon Sung-ryul said. "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".

Sales are expected to have surged 29.65 percent year-on-year to 62 trillion won, with the booming semiconductor business boosting the company's bottom line. The company is set to release its final earnings report on October 31.

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"The company has been riding a global semiconductor boom", he said, adding that the semiconductor business alone is believed to have contributed 10 trillion won to the operating profit.

Kwon is stepping down as head of Samsung Electronics' device solutions division, which includes the semiconductor business, and will not seek re-election as a member of the company's board when his term ends next March.

Samsung posted a record $9.6 billion in net income in the second quarter of 2017, easily beating analysts' estimates, due primarily to strong demand for its Galaxy S8 smartphone and demand for semiconductors.

Yonhap Infomax data, based on research from 21 securities firms, also showed that Samsung is expected to post an operating profit of 16 trillion won in the fourth quarter, up 74 percent from a year earlier.

After posting record profit, Samsung CEO resigns