- CEO Kwon launched his second term and vice presidents In-hwa Chang and Seong Yu were appointed as new inside directors.
- In-hwan Oh and Jeong-woo Choi were elected as new presidents and outside director Byoung-won Park was eleceted as chairman of the board of directors.
- CEO Kwon expressed his will for a new leap forward to lay the foundation for profitability and future growth.
CEO Ohjoon Kwon's second term was launched in full
scale. CEO Kwon was reappointed as CEO for a term of three-years at the 49th
general meeting of shareholders held on March 10 at the POSCO Center.
▶ On March 10, POSCO held its 49th general shareholders' meeting at the POSCO Center. More than 200 domestic and overseas shareholders, including representatives of overseas shareholders and institutional investors, attended the general shareholders' meeting.
In addition, president In-hwan Oh and vice president
Jeong-woo Choi were re-elected as inside directors at the general shareholders'
meeting, and vice presidents In-hwa Chang and vice president Seong Yu were newly
appointed as inside directors. Those appointed as new outside directors were
Shin-bae Kim, former vice chairman of the SK Group, Seung-hwa Jang, a professor
of law at Seoul National University, and Moon-ki Jung, an associate professor
of business administration at Sungkyunkwan University.
CEO Kwon, who took office as the Group's eighth
CEO in 2014, greatly enhanced its corporate structure and profitability by focusing
on strengthening POSCO's core competitiveness as a steel company, its financial
soundness and group restructurings for his first three years in the role.
Kwon, who worked as CTO(Chief Technology Officer)
before becoming the CEO, is a steel technology expert who had previously served
as director of the Technology Research Center and director of the Research Institute
of Industrial Science and Technology. Under his leadership, POSCO not only secured
exclusive technology competitiveness by leading the world's first and best technology
development but went ahead with solution marketing which combines hardware,
steel products with software elements such as application technology, commercial
support and human solutions. POSCO significantly drove up its operating profits
by 19% to KRW 2.6 trillion at the end of last year from KRW 2.2 trillion in
2013, Kwon's first year as CEO. During the same span, its operating profit ratio
also increased from 7.3% to 10.8%, recording a double-digit operating profit
ratio in five years. Since Kwon's inauguration as CEO, a total of 126 restructurings
had been implemented to achieve a cumulative financial improvement of KRW 5.8
trillion by the end of last year. Its debt ratio stood at 17.4 percent, the
lowest level since the foundation of POSCO.
As CEO Kwon succeeded in improving POSCO's structure
while enhancing its financial soundness and profitability, the company's credit
ratings by international credit rating agencies also improved. In October 2016
and in February 2017, Moody's and Standard & Poor's upgraded POSCO's long-term
credit rating outlooks from Baa2(negative) to Baa2(stable), BBB+(negative)
to BBB+(stable), respectively.
"A low growth rate, a burden of raw material
costs and the spread of protectionism throughout the overall domestic industry
are all expected to force us to face a tough business environment," CEO
Kwon said at the general shareholders' meeting. "But we will strengthen
the profitability of steel and complete restructurings. At the same time, we
will lay the foundation for future growth." To this end, Kwon suggested
future visions -- strengthening the steel business by reinforcing WP products
based on proprietary technologies such as high-manganese steel and giga-grade
steel, solidifying the group's business structure through structural improvements
and efficiency, discovering and promoting new synergy projects among group affiliates
and preparing a future growth engine based on smart solutions.
In-hwa Chang, who was newly appointed as an inside
director, is responsible for steel production sites such as Pohang Works and
Gwangyang Works after serving as head of the New Business Management Office,
head of the Steel Solution Marketing Office and head of the Technology Investment
HQ. Vice president Seong Yu is heading up new business endeavors such as high
value-added product technology and lithium and cathode materials as head of
the Technology Investment HQ. Before, Yu served as head of the New Business
Management Office, head of ESM Business Office and head of the PosLX Business
Outside director Shin-bae Kim is a high-profile
IT business entrepreneur who served as president of SK Telecom and vice chairman
of SK C&C. His excellent management skills promoted him to vice chairman
of the SK Group.
Outside director Seung-hwa Chang is a professor
of law at Seoul National University. He served as a judge of the Seoul District
Court and previously worked as a lawyer in the United States. Chang is a specialist
in international trade law. He worked as an arbitrator for the International
Court of Arbitration and was appointed as the first Korean judge of the WTO
Outside director Moon-gi Jeong is an associate
professor of business administration at Sungkyunkwan University. Jeong worked
at Samil PwC as a member of the Financial Supervisory Service's Accounting Review
Committee for many years and served as vice chairman of the Korean Accounting
The meeting was attended by about 200 domestic
and overseas shareholders including representatives of overseas shareholders
and institutional investors.
At a board of directors meeting held after the
general meeting of shareholders, POSCO elected outside director Byoung-won Park
as chairman of the board of directors. In-hwan Oh and Jeong-woo Choi were appointed
as new presidents.
In-hwan Oh, promoted as president in a routine
personnel reshuffle in February, is serving as Chief Operating Officer(COO)
of the Steel Division and COO of the Steel Business Division. Before, Oh served
as head of the Marketing HQ, and the head of Steel Business Strategy Office.
President Jeong-woo Choi is currently the head of the Corporate Strategy &
Finance Center after serving as chief financial officer, head of the Corporate
Audit Department and vice president of POSCO Daewoo.
Byoung-won Park, chairman of the board of directors,
is now chairman of the Korea Employers' Federation and has been working as an
outside director of POSCO since 2015. Park also served as chairman of the Woori
Financial Group, chairman of the Korea Federation of Banks, and chairman of
the National Happiness Fund.