The South Korean tech giant Samsung Electronics is all set to report an all-time high profit in its third quarter but the CEO shocked the nation with his resignation news.
The company went through the period of turmoil when its de-facto head and heir to the Samsung empire, Lee Jae-Yong, was sent to jail over a bribery scandal. Then they had to recall their flagship product Galaxy Note 7 smartphone over the issue of exploding batteries.
Pulling through the trying times under the leadership of Kwon Oh-Hyun, the CEO of the company, the company was expected to post a quarterly profit of 14.5 trillion won. This amount is nearly thrice of what was reported in the same quarter last year.
The company did not specify the performance estimates of each business division but according to estimations, it’s the semiconductor business of the company that is predominantly responsible for boosting its bottom line.
The sales figures have also gone up by 29.65 percent this year. There was an increase in the price and shipment of DRAM and NAND memory chips as well. These are the company’s main products that are used in smartphones.
Despite this spectacular performance, Kwon announced his resignation. He said, “Fortunately, the company is now producing best-ever results but this is merely a fruit of decisions and investment made in the past. As we are confronted with unprecedented crisis inside 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.”
The earnings are expected to be released later in this month.