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Despite record profit, Samsung CEO plans to quit

13 October 2017

But with reports saying that both Apple and Google are investing hundreds of millions of dollars into LG's display division, Samsung's dominance in OLED display tech may not continue on for too much longer.

SEOUL, Korea, Republic Of-The chairman of Samsung Electronics Co.'s board of directors, who has been the public face of the company after its de facto chief was jailed on corruption charges, said he will resign next year to make way for a new leader.

"As we are confronted with unprecedented crisis inside and out, I believe that time has now come for the company to start anew".

Samsung is expecting record profits for third quarter amid the high-flying memory chip prices.

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.

Despite the spectacular performance, Kwon said the company was in the throes of an "unprecedented crisis" as he announced his intention to step down.

Kwon added the company is facing a grave situation despite it making record-breaking earnings.

"Fortunately, the company is now producing best-ever results but this is merely a fruit of decisions and investment made in the past", he said in a statement.

Kwon joined Samsung in 1985 as a researcher in the company's Semiconductor Research Institute in the United States.

Sales are expected to have surged 29.65 per cent on-year to 62 trillion won, with the booming semiconductor business boosting the company's bottom line.

Kwon's tenure expires in March 2018, Yonhap news agency reported.

"Kwon himself might have thought over the issue for a long time", a Samsung spokesperson said, "but the notice itself was a surprise internally as well". The younger Lee has sought to fill his father's place as the company's since Lee Kun-hee was hospitalized in 2014. Lee Jae-yong's conviction was part of a bribery scandal that reached all the way to the president of South Korea, Park Geun-hye, who was impeached past year is also serving time in prison. Hearings on his appeal and those of four other convicted Samsung executives began October 12.

Despite record profit, Samsung CEO plans to quit