Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
POSCO Holdings' shareholders' meeting ends without hitch
POSCO Chairman Choi Jeong-woo speaks during the shareholders meeting at the company's office in Seoul, Friday. Courtesy of POSCO
By Baek Byung-yeul
By Baek Byung-yeul
POSCO Holdings' shareholders' meeting finished without any major hitches on Friday as the group's Chairman Choi Jeong-woo succeeded in gaining support from shareholders after vowing to speed up its transition to an eco-friendly materials company and strengthen its shareholder return policy.
“This year, POSCO Group will switch to a holding company system and be reborn as a company that will last more than 100 years,” the chairman told shareholders at the group's offices in Seoul. “We will faithfully play a platform role to develop future portfolios, reorganize group businesses, lead ESG management and establish corporate citizenship.”
The meeting was the first one held since the group launched POSCO Holdings on March 2. The holding company serves as a parent of its spun-off steelmaking unit, named POSCO, as well as its other subsidiaries such as POSCO International, POSCO Chemical, POSCO Energy, POSCO E&C and POSCO ICT.
Chairman Choi stressed that the company will work on improving its value through what he called “real value management,” which refers to the sum of economic, environmental and social value created by corporate activities.
“We will realize the five major goals of achieving carbon neutrality in the steel business, improving our capability in new mobility, leading in green energy, realizing future housing and securing global food resources,” Choi said.
Shareholders supported the chairman's move by passing all of his proposals, including the appointments of new board members.
When asked about the company's dividends policy, Choi said, “We will offer 17,000 won in dividends per share and the dividend payout ratio is at 6.2 percent. We seek shareholders' understanding because it is expected to be higher than other large companies and requires enormous investment funds in the new growth sector."
Choi also confirmed that the company will retire a certain amount of treasury shares this year, as part of its efforts to enhance corporate value.
During the meeting, shareholders did not raise any questions about POSCO Holding's relocation issue. The holding company has its headquarters in Seoul, but recently decided to move to the company's hometown of Pohang in North Gyeongsang Province.
Pohang residents, politicians and civic groups have raised issue with the southeastern port city losing its competitiveness if the holding company maintains its headquarters in Seoul. Facing such a backlash, the company promised on Feb. 25 that it will relocate its headquarters to Pohang by March 2023.