By Yoon Ja-young
On the day Samsung Electronics predicted record-high operating profit, its de-facto temporary head announced he will retire in March. With Vice Chairman Lee Jae-yong detained on charges related to a political corruption scandal, there is rising concern that the country’s top conglomerate will face a leadership vacuum.
The global tech giant said Friday that Vice Chairman and CEO Kwon Oh-hyun plans to resign as the company’s head of the Device Solutions Business and will not extend his current tenure as board chairman when his term ends in March next year. He will also resign as the CEO of Samsung Display.
In a letter sent to all employees, Kwon said that he decided it was the right time to announce his retirement though it was the most difficult thing for him to do.
“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,” he said.
“As we are confronted with unprecedented crises inside out, I believe the 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.”
Kwon is one of the witnesses of the global IT giant’s historical success. After majoring in electrical engineering at Seoul National University and getting a Ph.D. at Stanford University, he joined Samsung in 1985 as a researcher at its Semiconductor Research Institute in the United States. He also served as president and head of the System LSI Division and as president and head of the Semiconductor Business before becoming CEO of the company in 2012. He has also served as the CEO of Samsung Display since 2016.
Recollecting how he has witnessed the company emerge as a global leader in the semiconductor business during the past 32 years, the CEO said he harbors a “deep sense of pride and honor to have taken part in the company’s incredible journey to success.”
“There are no words to describe how proud I am that together we built one of the most valuable companies in the world. We have come a long way to create a company that truly changes how people live, work and communicate with each other.”
He noted that while Samsung is enjoying record-high performances, this is the fruit of decisions and investments made in the past. He showed concern that it is not seeking new growth engines.
Kwon has been heading Samsung Electronics since Lee, heir of the Samsung Group Chairman Lee Kun-hee, was detained for alleged involvement in the political corruption scandal that led to the impeachment of former President Park Geun-hye.
It remains to be seen whether Samsung Electronics will have to reshuffle its managers since it has minimized new appointments during the past few years following the sudden hospitalization of the chairman due to a heart attack.
According to Samsung, Kwon is soon to recommend his successor to the board including Lee.