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00:00:02
>> A surprise resignation at the top of Samsung. CEO and Vice-chairman, Kwon Oh-Hyun, announcing on friday that he's decided to step down after what he calls an unprecedented crisis. Kwon is a Samsung veteran, seen as a company's number two. He was tipped to take on a much bigger role following the arrest and conviction of de facto chief Jae-y Lee.
00:00:25
But he now says the company should quote, Start anew with new spirit and young leadership. As Reuters Joyce Lee explained, the ongoing upheaval is raising red flags.>> The leadership vacuum in Samsung Electronics is getting progressively worse. Samsung's heir, Jae-y Lee is detained for bribery charges. Former executives have step down, due to the corruption scandal and now Kwon is resigning.
00:00:53
Kwon is one of Samsung so call legends. These are the people that puts Samsung electronics on the map, the ones that made it number one in smartphones, number one in chips, and number one in TVs.>> Despite its management troubles, Samsung's bottom line is looking remarkably healthy. The company also revealing on Friday that it's expecting a record profit for the July to September period.
00:01:19
With earnings potentially nearly tripling thanks to surging demand for memory chips.>> Kwon's resignation is not expected to affect performance. Samsung's fourth quarter profits is expected to be another new record and its 2018 profit is expected to be even better, analysts say Due to the booming memory chip market.
00:01:42
>> That's welcome news for the board as Jae-y Less's corruption scandal rumbles on. His legal team have now kicked off arguments in the appeal of his five year jail term. But being behind bars hasn't diminished Lee's fortune. His stake in Samsung has increased at least 45% in value since his arrest in February, currently worth around $2 billion.