Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
POSCO chairman vows green growth in 2nd term
POSCO Chairman Choi Jeong-woo speaks during the company's annual general meeting at POSCO Center in Seoul, Friday. Courtesy of POSCO
By Nam Hyun-woo
By Nam Hyun-woo
POSCO Chairman Choi Jeong-woo received the green light from shareholders to stay in the top job for another term and pledged to focus on eco-friendly business while improving efficiency.
According to POSCO, its shareholders approved Choi's second term during the company's annual general meeting in Seoul. Following the approval, Choi will lead POSCO and its affiliates until March 2024.
Choi was appointed as POSCO chairman in July 2018 and was recommended to serve another three-year term by the POSCO board last December. The future of his second term had been clouded with uncertainties as politicians and civic groups demanded POSCO's largest shareholder, the National Pension Service (NPS), object to Choi's leadership citing a series of fatal accidents that took place at POSCO facilities during Choi's tenure.
However, the NPS decided to go neutral in the vote on Choi's second term, and a number of global proxy advisers also recommended shareholders give him three more years, citing shareholder value may be damaged if Choi fails to get a second term.
“POSCO will concentrate on preoccupying the market demand for eco-friendly vehicles and construction materials,” Choi said.
He added POSCO affiliates will expand investments for growth sectors such as liquefied natural gas (LNG) and food trading, while internalizing raw material businesses for rechargeable batteries to become top-tier companies in the global electric vehicle supply chain.
As he embarks on his second term, the pursuit of environmental, social and corporate governance (ESG) values will further expand to prioritize safety, following politicians' and civic groups' calls for improved workplace safety. POSCO shareholders also approved the establishment an ESG committee in the company's board, to have the committee to look into safety issues.
Choi is expected to invest more in battery material-oriented business in accordance with governments' focus about investing more in eco-friendly business projects. In January, POSCO Chemical raised 1.27 trillion won by issuing new rights to shareholders including POSCO. Following the investment, POSCO Chemical plans to raise its capacity of producing cathode and anode materials to 124,000 tons and 121,000 tons by 2023, respectively.
Also, POSCO plans to increase its annual supply of lithium and nickel to 220,000 tons and 100,000 tons by 2030, respectively. When these are combined, the company believes it will be able to log 23 trillion won in sales from the battery materials business in 2030.
For the hydrogen business, Choi reiterated his earlier commitment to achieving the goal of producing 5 million tons of hydrogen by 2050. POSCO Group forecasts 102 trillion won in combined sales of all of its affiliates in 2023, up from 90 trillion won in 2020.
“In Choi's first term, POSCO Group focused on reorganizing low-performing units and exploring new growth opportunities. In his second term, the group will be able to see more outcome from new growth businesses,” a POSCO spokesman said.
POSCO Center in Gangnam District, Seoul / Courtesy of POSCO