Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
POSCO holds outside directors' IR meeting
POSCO executives, outside directors and institutional shareholders discuss during an investor relations meeting at POSCO Center in Seoul, Monday. Courtesy of POSCO
By Kwak Yeon-soo
By Kwak Yeon-soo
POSCO held a meeting with institutional investors and outside directors at the POSCO Center to share information about the company's corporate governance and the board's role, the company said Monday.
The meeting was aimed at increasing shareholders' understanding of the board's role, the company's business structure and its decision-making processes, according to the steelmaker.
This comes in line with POSCO Group Chairman Choi Jeong-woo's “100-task initiative,” in which he pledged to study enhanced shareholder policies.
Last year, POSCO announced it would regularly hold outside directors' investor relations (IR) meetings for the sake of investors.
The meeting was attended by three outside directors, including POSCO Chairman of the Board Kim Shin-bae; five board directors, including POSCO Senior Vice President and Head of Corporate Strategy and Planning Division Chon Jung-son; and six institutional investors, including the National Pension Service and Korea Corporate Governance Service.
POSCO introduced the group's search for new growth opportunities and risk management to stay atop the global steel industry.
In particular, the steelmaker emphasized integrating risk management into the overall investment process, which includes periodically reviewing possible risks.
POSCO shared its corporate citizenship to create a virtuous cycle of economic and social values.
The company also introduced a corporate citizenship committee under its board and its decision-making process in selecting key business leaders to promote sustainable growth.
Apart from a committee, there is an organization in charge of nurturing venture firms and job training programs for jobseekers.
Lastly, it shared outside directors' proposals and accomplishments that led to the enhancement of shareholder rights. They include increasing dividends to raise shareholder value and introducing an electronics voting system at the shareholders' meeting.
At the meeting, POSCO Chairman of the Board Kim Shin-bae explained the company's continued efforts to establish an advanced and transparent corporate governance structure.
“We hope this meeting serves as an opportunity to reinforce communication between outside directors and shareholders. Also we hope to share POSCO's corporate governance and decision-making processes, leading to corporate value,” Kim said.
Meanwhile, the company announced it will hold a foreigners' IR meeting in November.
POSCO has made constant efforts to implement advanced governance, introducing an outside director system in 1997 for the first time among conglomerates. An outside director system is a method of separating ownership from management.
Buoyed by the company's efforts, it has been recognized for its transparency and the independence of its corporate governance system by Korea Corporate Governance Service.