Samsung has replaced its CEO as it aims to drive further innovation, putting former components business manager Kwon Oh-hyun in charge of the firm.
Despite pushing Samsung to even greater heights as boss of the South Korean company, the unexpected shake up will see former CEO Choi Gee-sung take up a role on the board of directors.
Samsung has been growing substantially over the past few years, swatting competition aside in various fields such as smartphones, flatscreen televisions and chip production, while reaping record profits as its revenues soar. The firm also announced that it would be throwing money at a new $1.9 billion logic chip plant.
Showing just how tough life is at the top, Choi will now make way for the man who is said to be the mentor for the son of Samsung’s chairman, Lee Kun-hee, as the firm looks for new avenues of growth. Samsung said that the move for Choi was not a demotion.
Incumbent CEO Kwon had been presiding over the components arm of Samsung’s business, and will continue to do so while taking up company wide corporate responsibility.
According to the Financial Times Samsung said the components business will still be run separately to avoid a conflict of interest which could rile partners. Samsung will hope customers want to buy components from it without giving away design secrets.