[Featured Stock] 국민연금's Neutral Stance on 'Choi Jung-woo Reappointment'... POSCO Plunges 5%

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] POSCO's stock price is plummeting more than 5% following the prosecution's indictment of Chairman Choi Jeong-woo and other executives on charges of insider trading using undisclosed information.

As of 10:58 a.m. on the day, POSCO's stock was trading at 300,000 KRW, down 17,000 KRW (5.36%) from the previous day. Although expectations of improved earnings due to steel price hikes had driven a five-day consecutive rise since early this month, the stock has declined for two consecutive days since the executives were reported to the prosecution the day before.

Earlier, organizations such as the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society filed a complaint with the Seoul Central District Prosecutors' Office, alleging that 64 POSCO executives, including Chairman Choi, purchased large amounts of company shares in March last year ahead of a decision to buy back shares, constituting stock investment using undisclosed information.

Additionally, on the same day, the National Pension Service's Stewardship Committee decided to vote in favor of the approval of financial statements and partial amendments to the articles of incorporation proposed at POSCO's upcoming regular shareholders' meeting, but expressed a 'neutral' stance on Chairman Choi Jeong-woo's reappointment, which also contributed to the stock price decline.

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