Samsung Electronics CEO resigns over bribery scandal

Kwon Oh-hyun quits on the same day company posts monster profits

Samsung Electronics vice-chairman and CEO Kwon Oh-hyun has announced his resignation, citing the “unprecedented crisis” of the bribery scandal that saw Samsung vice-chairman Lee Jae-yong jailed for bribery.

Oh-hyun's statement on his resignation says he thinks the company needs to renew its management.

“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” he said.

Those new managers have plenty to live up to, as Samsung's guidance for its third quarter earnings promise profit of US$12.81 billion on revenue of around $60bn. The profit figure is a record.

While we'll have to wait to learn the particulars behind those numbers, the company has previously said that Galaxy Note 8 launched with record numbers of pre-orders for the company's phablet range, and that global demand for memory remains high and means the company enjoys fat margins.

There's more good balance sheet news to come, too, as Samsung will supply screens for the iPhone X and Apple's flagship is expected to sell by the container-load once it debuts in the first week of November.

Oh-hyun will stay on until the end March 2018, when his term on the board was due to end. He has also resigned from his post as CEO of Samsung Display. ®

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