Lee Jae Yong

Heir apparent to Samsung Electronics boss Lee Jae Yong, has been promoted to the board of directors on Thursday amid an ongoing crisis over a Note 7 failure.

The promotion was announced by Chairman of the board of directors, Kwon Oh Hyun, at a shareholders’ meeting yesterday.

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“Mr Lee’s election to the board will allow him to take more formal responsibility in the company’s important decision-making.”

“He will contribute to creating long-term, sustainable value for all of our stakeholders.”

Lee Jae Yong’s 74-year-old father and current chairman of the Samsung group, Lee Kun Hee, is seriously ill.

The move came as the company announced reduced profits for the third quarter. This is as a result of the failure of the Galaxy Note7 smartphone.

Net profit in the July-September quarter fell 17 per cent to 4.54 trillion won (4 billion dollars) compared to the same period last year.

Total revenue fell 7.5 per cent to 47.8 trillion won.

Note7 Owners Sue Samsung Amidst Crisis

Meanwhile, hundreds of South Korean Note7 smartphone owners filed a joint lawsuit against the company. They are seeking compensation after the smartphone was discontinued.

The discontinuation of production is expected to cost Samsung 3.5 trillion won in operating profit until first quarter of 2017.

Samsung only began selling the phone in August. It discontinued production following a global recall and a number of reports of the devices catching fire.

The 940-dollar Galaxy Note7 was aimed at the premium end of the market, where it was intended to compete with Apple’s iPhone.