ã€Global Network Technology Reporter Chen Jian】October 13th, news from Samsung Electronics is once again making headlines. Today, the company announced that its CEO and Vice Chairman, Lee Jae-yong, has decided to step down from his management role. Interestingly, just a few hours earlier, Samsung had released its quarterly performance forecast, predicting record-high profits for two consecutive quarters.
In a statement, Lee said, “I have been thinking about this decision for a long time. It was not an easy choice, but I feel it’s time to move forward. We’ve faced an unprecedented crisis, and in order to better handle future challenges, the company needs a fresh start with new leadership and a renewed spirit. I believe now is the right moment for Samsung to establish a new management team to drive innovation and find new growth opportunities. While we've achieved great results through past decisions, we still need to look ahead and identify the next big trends.â€
Just yesterday, Lee Zaiqiu, a senior vice president at Samsung, was involved in a bribery case and entered the second instance trial in the Seoul High Court. This marks the first public appearance of the high-profile figure in nearly 50 days. Samsung has stated it will appeal the verdict, hoping to secure an acquittal in the second round. On the other hand, South Korean prosecutors argue that the original sentence was too lenient and have also filed an appeal. Earlier, an independent investigation team had recommended a 12-year prison sentence for Lee.
During Lee Zaiqiu’s detention, several key Samsung executives have left the company. Many have placed their hopes on Lee Jae-yong to guide Samsung out of its current challenges. Lee joined Samsung in 1985 and became CEO in 2012. His decision to step down comes at a critical time, as the company's leadership structure may face unexpected changes. However, Lee will not immediately resign; he will remain in his position until the end of his term in March 2018.
Recently, Samsung reported that due to strong demand for memory chips, its operating profit is expected to hit a record high of 14.5 trillion won (around $12.8 billion), a 178% increase. Analysts suggest that this could be an ideal time for top executives to leave, as the impact on the company might be minimal given the positive financial outlook.
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