Daewoo International CEO steps down

By Park Jin-hai

Choi Jeong-woo Acting president

Daewoo International CEO Jeon Byeong-eal, who had openly opposed its parent POSCO’s plan to dispose of its stake in Myanmar natural gas project, stepped down Tuesday.

Jeon announced his decision to resign at a board of directors meeting.

“I’ve decided to quit as I feel that I shouldn’t cause more trouble to the company and management,” he said in a statement.

With his resignation POSCO’s internal conflict with its affiliate appears to be over.

Jeon said POSCO has decided not to dispose of the stake in the Myanmar natural gas project.

Vice President Choi Jeong-woo was named as acting president until he is officially appointed to the post at a shareholders’ meeting.

However, the conflict between top management of the two companies is expected to tarnish POSCO Chairman Kwon Oh-joon’s leadership.

Following a flurry of reports that POSCO would sell Daewoo’s stake in the natural gas business, Jeon posted a message on the company bulletin board, criticizing management for pushing ahead with the sale.

Jeon and 31 other heads of POSCO affiliates turned in resignations to Chairman Kwon to show their willingness to transform their companies into more efficiently-managed and profitable entities.

POSCO considered selling Daewoo's ownership in the Myanmar gas project in order to raise much-needed cash to improve its finances.