Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-hyun had decided to step down from management, as it forecast record third-quarter profits on the back of soaring memory chip prices.

”I believe the time has come for the company to start anew with new sprit and young leadership to better respond to challenges,” Kwon, who is seen as Samsung Group No. 2, said in a statement.

“We are fortunately making record earnings right now, but this is the fruit of past decisions and investments; we are not able to even get close to finding new growth engines by reading future trends right now.”

Chung Sun-sup, chief executive of research firm Chaebul.com, said he was “surprised and curious about why he is quitting despite record profits”

”I‘m also worried about a leadership vacuum at a time when Lee is absent from management,” he said.

Known as “Mr Chip”, Kwon, 64, oversaw the growth of Samsung’s component business which now generates much of the firm’s profits, dwarfing earnings from smartphones and other mobile devices.

Note 7 release prior iPhones last year cost Samsung "battery issue" scandal and imprisonment of presidents (both Korean and Samsung).

Inability to supply enough OLED panels for IPhone X lead to resignation of 2nd man in power.