Samsung predicts record profits for third quarter as memory business booms

Samsung predicts record profits for third quarter as memory business booms

Samsung predicts record profits for third quarter as memory business booms

Samsung Electronics said Friday Friday its CEO and Vice Chairman Kwon Oh-hyun would step down from management after three decades with the company amid a corruption scandal involving its de facto chief.

Kwon Oh-hyun said in a statement Friday that he will resign as the head of the company's semiconductor and component business and will not seek re-election on the board when his term expires in March.

The chairman of Samsung Electronics' board of directors and one of the company's three chief executive officers says he will resign next year.

"It is something I had been thinking long and hard about for quite some time".

"I want my resignation to be an opportunity for a higher level of challenge and innovation and to overcome this hard situation", Kwon said in the statement. In a letter to employees, Vice Chairman 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.

Kwon added the company is facing a grave situation despite it making record-breaking earnings. He also has served as the CEO of Samsung Display since 2016.

Samsung Electronics said Kwon plans to deliver his intention to Lee in the near future and recommend a successor.

Vice Chairman Kwon joined the company in 1985 as a researcher of the company's Semiconductor Research Institute in the United States. Samsung has two other CEOs each overseeing its mobile phone business and home appliance division.

The South Korean tech giant also said it expected consolidated sales to be about 62 trillion Korean won, a touch lower than the 62.1 trillion won market forecast. In the first half of this year, he received 13.9 billion won including bonuses on the back of the robust performance of the chip business.

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