Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Selection of next POSCO chairman triggers controversy
Presidential chief of staff Kim Dae-ki, left, and POSCO Group Chairman Choi Jeong-woo / Korea Times files
By Park Jae-hyuk
Rumors including one involving a top presidential aide have been spreading since last Thursday when POSCO Group started a process to appoint its next chairperson, according to industry officials, Tuesday.
The cybercrime bureau of the Seoul Metropolitan Police Agency launched a probe into a rumor circulated online that presidential chief of staff Kim Dae-ki is trying to meddle with the appointment process, after a formal complaint was lodged.
Kim has drawn attention for his close relationships with former LG Energy Solution CEO Kwon Young-soo, who is mentioned as one of the candidates to lead POSCO Holdings, and with former Oceans and Fisheries Minister Kim Sung-jin, one of POSCO Holdings’ outside directors who will take part in recommending the next chairman to lead the nation’s fifth-largest business group over the next three years.
"We are investigating the case. We cannot disclose details," a police official said.
After calls have grown for POSCO Holdings to appoint an outsider as its next chairman to drive innovation, rumors have spread that former and incumbent government officials are trying to give the seat to their close friends.
Although POSCO was privatized in 2000, the government has continued exercising its influence over the steelmaker and its affiliates through the National Pension Service, the state-run pension fund that is the largest shareholder of POSCO Holdings.
Former Chairman Chung Joon-yang, who was appointed under the 2008-13 Lee Myung-bak administration, offered to resign when Park Geun-hye took office as the next president. His successor, Kwon Oh-joon, was reappointed in March 2017, but he stepped down under the Moon Jae-in administration.
Considering the fact that the incumbent chairman, Choi Jeong-woo, was appointed under the Moon administration, he was initially not expected to seek another three-year term.
Choi, who has faced continuous opposition from the now-ruling People Power Party, has also been excluded from business delegations accompanying President Yoon Suk Yeol on his overseas trips. In addition, POSCO Group recently revised the rules on the appointment of its next chairman, so that the incumbent chairman will not receive any preferential treatment.
However, Choi purchased additional POSCO Holdings shares worth 300 million won ($232,000) earlier this month, indicating his intention to seek a third term.
“There is nothing to comment on," a POSCO Holdings official said when asked whether the chairman has decided to seek a third term.
If it turns out to be true that Choi is seeking another term, he will likely compete with POSCO Vice Chairman Kim Hag-dong, who leads the group’s steelmaking unit, POSCO International Vice Chairman Jeong Tak, who heads its trading firm, and several former and incumbent executives of the group.