POSCO’s soft-spoken leader

The Korea Times

The Korea Times

National

Wed, December 6, 2023 | 06:41

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POSCO’s soft-spoken leader

Posted : 2010-11-09 18:30

Updated : 2010-11-09 18:30

The steel industry often invokes images of CEOs with a barrel chest and broad shoulders.

By Kang Seung-woo

The steel industry often invokes images of CEOs with a barrel chest and broad shoulders.

Having looks opposite this stereotype is unassuming, soft-spoken Chung Joon-yang, chairman of POSCO, the world’s No. 3 steelmaker. Chung’s looks may prove to be deceiving, since the 62-year-old hesitates to make tough decisions and follow them through. His management philosophy is largely about expansion.

Under his leadership, Posco is the only company among the top 10 steel makers that has not reported a quarterly loss since the global financial crisis hit in 2008.

Since Chung was at the helm last year, he has been active in making a foray into the global market with hopes of its investment boosting the company’s profile abroad and putting it in a better position against rival steel producers in the world.

The company is also pushing to build more plants in foreign countries as well. The steelmaker is pursuing a $7 billion plant in India’s Karnataka state along with a $12 billion project in Orissa and a $6 billion Indonesian plant.

As of now, it currently has 47 steel processing centers in 15 countries, including Turkey, China and Japan.

As part of its overseas market expansion, POSCO took over Daewoo International Corp., whose business line ranges from trading to overseas energy development, in the belief that the acquisition of the country’s No. 1 trading firm will help the steelmaker procure raw materials due to its energy exploration business and global distribution network.

“Global expansion will help POSCO secure a footing in the global market,” Chung recently said during the groundbreaking ceremony of its joint construction of an integrated steel mill in Indonesia.

The chairman promised to make the firm a fun place to work in its efforts to push forward his three management principles - creative management, environment-friendly management and open management.

In line with his continuous declaration since assuming office, POSCO opened an entertainment and resting lounge, called “Poreka,” a combined word of POSCO and Eureka in hopes of encouraging its employees’ critical thinking and creativity.

“POSCO is making every effort to become a global player in steel industry. In order to achieve our objectives, we need your fresh ideas, logical thinking and sensibility, let alone the global competence,” Chung said in a breakfast meeting with employees.

“Please keep the principles of Open Management, Creative Management, and Eco-friendly Management in mind.”

His strong chairmanship paid off, as his company was named the most competitive steelmaker by World Steel Dynamics (WSD), an agency specializing in the analysis of the steelmaking industry, in April.

ksw@koreatimes.co.kr