Samsung Electronics CEO to Mysteriously Resign Amid Record Profits

Samsung Electronics CEO to Mysteriously Resign Amid Record Profits

However, in a sign of good news for the company, its estimated operating profits for the third quarter of 14.5 trillion won (US$12.8 billion) marked a record for quarterly profit, almost tripling the 5.2 trillion won earned a year earlier. Kwon is also leaving his position as chief executive of Samsung Display, which he has held since 2016.

In a letter sent to all employees, 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.

"It is something I had been thinking long and hard about for quite some time", Kwon said in a Samsung announcement.

"There are no words to describe how proud I am that we built together one of the most valuable companies in the world", Kwon said in an email to Samsung employees.

While expressing concern that the company was "confronted with unprecedented crisis inside out", alluding to the conviction of its leader, Kwon said he hopes his resignation can be a good opportunity for the company to turn things around and make bold attempts at innovation.

Samsung did not name a successor to Kwon. Sales are expected to weigh-in at around 63 trillion Korean won, while operating profit is forecast to be about 14.6 trillion Korean won.

Samsung did not announce the performance estimates of each business division but its semiconductor business is widely believed to have contributed greatly to the record-beating report.

Kwon will also resign as the CEO of Samsung Display.

The company is set to release its final earnings report later in October.

Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, Samsung said in a regulatory filing.

Yonhap Infomax data, based on research from 21 securities firms, also showed Samsung is expected to post an operating profit of 16 trillion won in the fourth quarter, up 74 percent from a year earlier.

Indicating sharp recovery in earnings from last year's Note 7 fiasco, the South Korean tech giant said its third-quarter operating profit was expected to triple compared to the previous year, apparently on sound returns from its computer chip business.

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