"As we are confronted with unprecedented crisis inside out, I believe that time has now come for the company start anew, with a new spirit and young leadership to better respond to challenges arising from the rapidly changing IT industry", Kwon said in a statement Friday. Samsung Electronics said Kwon will also retire from his board seat at Samsung Display Co. Lee was found guilty of bribery and other corruption charges in August. Operating income nearly tripling to a record 14.5 trillion won ($12.8 billion) in the three months ended September, according to preliminary results.
Kwon announced his decision in a letter to Samsung employees.
The company forecast bumper quarterly earnings on Friday, putting it on track to post a record operating profit for the period.
"[Samsung] has been showing record performances", Kwon said.
Experts equally noted that the company was making record earnings right now, but this is the fruit of past decisions and investments and that the firms are not able to even get close to finding new growth engines by reading future trends right now. What's interesting, is that while the company has clearly and unmistakably been put through the wringer over the last few years, most recent reports suggest that, for once in a long while, things may be turning around for Samsung. But it could also encompass Samsung's recall fiasco with the Note7 smartphone previous year, with the flagship smartphone having to be pulled off of market shelves due to a fire hazard with its charging mechanism. Mark Newman, senior research analyst at Sanford C. Bernstein said Kwon's top deputies, President J.K. Shin, who is in charge of mobile products, or Kim Ki-nam, president of Samsung's semiconductor business, may succeed Kwon.
Kwon will leave the company in March, when his term as chairman of Samsung Electronics ends. While Lee Kun-hee is expected to keep the title of "Chairman" for life, medical issues have caused him to step away from Samsung, and Lee Jae-yong had been running the company since 2014.