Samsung Electronics director leaves due to ‘unprecedented crisis’

The director of Samsung Electronics is stepping down because of the ‘unprecedented crisis’ within the group. He probably means that the alleged successor to the director of the entire South Korean group is incarcerated because of corruption.

Director Oh-Hyon Kwon says in a message on the Samsung site that the company is ready for new leaders. “I believe the time has come for the company to start afresh, with a new spirit and young leadership to better respond to the challenges of the rapidly changing IT industry.”

A South Korean judge sentenced the intended successor of the director of the entire group, of which Samsung Electronics is part, to five years in prison. The court finds Lee guilty of bribery. Via dubious foundations and front men, the CEO is said to have paid a EUR 34 million bribe to former South Korean President Park Geun-hye. That would have happened in exchange for support with business deals. Lee is the grandson of the founder of Samsung. His father, Lee Kun Hee, is officially the head of Samsung, but has been in hospital since 2014, which means that the now convicted CEO has actually been running the company for three years.

Kwon, who is now stepping down, is not only director of Samsung Electronics, but also CEO of Samsung’s screen division and he was also at the top of the components branch of the South Korean group. It is unknown who will succeed him. Although Samsung seems restless internally, it does make the largest profits in its own history. The company announced that it expects a record quarter for the second quarter in a row.