Samsung’s ‘Unprecedented Crisis’ Leads Veteran CEO to Resign

Samsung's 'Unprecedented Crisis' Leads Veteran CEO to Resign Credit: Washington Post

It appears that yet another crisis is unfolding at Samsung. We’re not talking about the company’s self-described “dismal state”, or another Galaxy Note device gone up-in-flames, or the tech-giant’s latest debacle, which saw its chairman Lee Jae-yong imprisoned for five years following his sentencing on charges of bribery, corruption, and perjury..

This is a completely unrelated issue, apparently, which came to light earlier this week courtesy of a report which asserted that Kwon Oh-hyun, Samsung’s acting Chief Executive Officer of 32-years, will be resigning in March, 2018, citing an “unprecedented crisis” of vague proportions.

“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,” Oh-hyun said in a letter to Samsung employees, a copy of which was obtained by The Telegraph. “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.”

While details about this ‘crisis’ are noticeably scant, it would appear from Oh-hyun’s statement that he’s merely looking to “pass the baton,” so to speak, onto the next-generation of leaders and innovators in the tech space. What’s interesting, is that while the company has clearly and unmistakably been put through the wringer over the last few years, most recent reports suggest that, for once in a long while, things may be turning around for Samsung.

For instance, the Galaxy-maker is expected to report a significant, year-over-year growth in revenue of 62 trillion won ($54 billion) for the current quarter — in comparison to the 47.8 trillion won ($42 billion) generated during the same quarter last year.

And while Samsung’s operating profits are expected to be as much as three-times higher than usual (due to its role in supplying so many components for iPhone, as well as the popularity of its own flagship smartphones), we’d find it hard to believe the company’s veteran CEO would simply get up and bounce like that. Then again, with no successor plans currently in place — and Samsung’s other executive powers simmering in the slammer for a few more years — perhaps the company is merely looking for a new direction to help it navigate the ever-evolving tech space.

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