POSCO chairman likely to seek 3rd term

POSCO Group Chairman Choi Jeong-woo appears to be seeking a third term as he recently purchased additional shares of POSCO Holdings, the group's holding company, additionally the board has changed the chairman selection rules while remaining silent about the current chairman's future course of action, according to industry officials, Friday.

"Chairman Choi is expected to opt for a quiet challenge rather than announcing his bid to run for a third term loudly,” an industry official said on condition of anonymity. “He appeared to opt for being included automatically among the candidates looking to become the next chairman according to the changed internal regulations of POSCO Holdings.”

On Dec. 19, the board of POSCO Holdings changed the regulations so that the procedure for appointing the next chairman would start regardless of the incumbent chairman's expression of intent. Therefore, the incumbent chairman does not necessarily have to declare his intent to seek another term.

Previously, according to company regulations, an incumbent chairman facing the end of his term and wanting to stay on for another term had to express his intent 90 days before the shareholders' meeting. But Choi will be automatically included in the list of next chairman candidates without having to declare his intent.

However, the official added that it remains to be seen — until mid-January — whether the group will release a long list of chairman candidates.

"Last August, KB Financial Group Chairman Yoon Jong-kyoo also announced that he would not seek a fourth term. Yoon was included in the long list of the next chairman candidates announced by KB Financial Group, but he withdrew his name from consideration, saying it was time to pass the baton to a successor," the official said.

"It could be the same for POSCO Group. When the long list of next chairman candidates comes out in mid-January, the incumbent chairman might express his intention not to seek a third term. It's an issue that needs to be watched further."

When asked whether the chairman has decided to seek a third term, a POSCO Holdings official said, “There is nothing to comment.”

Choi took office as the group's ninth chairman in July 2018 and won a second term in March 2021.

The industry view is that Choi will seek a third term because his leadership was responsible for the steel-making group's bold investment in the electric vehicle materials sector and diversifying beyond steel to produce a wider variety of materials.

Also, the chairman purchased 700 shares of POSCO Holdings on Dec. 11. Given that chiefs of a company often sell the stocks they own before retiring, his move can be interpreted as a signal that he is vying for a third term since buying more stocks.

POSCO Group said the CEO nominee recommendation committee, which selects the next chairman, held its first meeting on Dec. 21, two days after POSCO Holdings' board meeting.

"The plan is to establish a long list of candidates by mid-January, a shortlist by the end of January, compress it to a finalist in February and recommend one final candidate to the board," the POSCO Holdings official said.

The group will then narrow it down to one final person to report to the board and finally appoint the next chairman at the shareholders' meeting, which is scheduled to be held in March.

If the incumbent chairman is selected as the third chairman, he will be the first person in the history of the group to serve three consecutive terms.

“We will disclose all the details regarding the chairman appointment process transparently,” the official said.