[Yonhap Photo]
Kwon Oh-hyun, who has played a crucial role in South Korea's semiconductor industry, announced his sudden resignation as interim head of Samsung Electronics, fueling concerns about a prolonged power vacuum in the world's largest producer of smartphones and computer chips.
Kwon, 64, said he would step down from all his positions without extending his current tenure in office which expires in March 2018. He has led the group on behalf of Samsung Electronics Vice Chairman Jay Y. Lee, who is on trial for bribery and other charges after being linked to a scandal that led to the ouster of ex-president Park Geun-hye.
The son of Samsung's bed-ridden group head Lee Kun-hee was given a five-year prison sentence in August.
"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 an English statement to employees.
His resignation coincided with Samsung's earnings guidance that predicted a second straight quarter of record profits. Third-quarter operating profit was estimated at 14.5 trillion won (12.8 billion US dollars), compared with 5.2 trillion won a year earlier. Sales were forecast to soar 29.6 percent to 62 trillion won.
Market watchers said Samsung's stellar performance owed much to brisk sales of computer chips. But Kwon attributed it to decisions and investment made in the past, saying his retirement would help Samsung take the next step forward. He has played a pivotal role in Samsung's global dominance of the semiconductor industry.
"As we are confronted with unprecedented crisis inside and out, I believe that time has now come for the company to start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry," he said.
As Lee's imprisonment is expected to last for at least a year since his arrest on February 17, jitters are growing in South Korea's business community about Samsung's global competitiveness. Professional managers like Kwon have settled into the structure of each Samsung affiliate, but the group chief has exercised a broad influence on strategic group-wide issues.
reporter
Lim Chang-won
cwlim34@ajunews.com
