POSCO Chairman Choi Jung-woo Regains the Trust of Formerly Disappointed Shareholders

POSCO Holdings Annual General Meeting Concludes Without Surprises
Reaffirms Plan to Strengthen Shareholder Return Policy

[Asia Economy Reporter Oh Hyung-gil] Choi Jung-woo, chairman of POSCO Group, has regained the support of shareholders who had turned away. By using the transition to a holding company as a stepping stone, he gained shareholders' backing through his goal to nurture POSCO Group into an eco-friendly future materials company and his commitment to strengthening shareholder return policies.

At the 54th regular general meeting of shareholders of POSCO Holdings held on the 18th at the POSCO Center in Gangnam-gu, Seoul, Chairman Choi said in his greeting, "This year marks the first year of POSCO Group's rebirth as a genuine 100-year company through the transition to a holding company system," adding, "POSCO Holdings, as a holding company, will faithfully serve as a platform for balanced group growth by developing future portfolios, reorganizing group businesses and securing synergies, leading ESG (environment, society, governance) management, and establishing the identity of corporate citizenship."

He further stated, "We will realize five key goals: completing steel carbon neutrality, driving new mobility, leading green energy, realizing future housing, and securing global food resources," emphasizing, "Through real value management, we will dramatically enhance the group's value." Real value management refers to the total sum of all values created through corporate activities, including economic, environmental, and social values provided to members of the social community as part of society.

Shareholders attending the meeting supported Chairman Choi's initiatives by approving all proposed agenda items. Of the approximately 75.62 million shares with voting rights, 56.07 million shares (74.1%) were present at the meeting, including proxies and prior electronic voting.

Key agenda items included the reappointment of Jeon Jung-sun, head of POSCO Holdings' management strategy team, and Jung Chang-hwa, head of the Future Technology Research Institute, as inside directors, and the new appointment of Yoo Byung-ok as head of POSCO Holdings' Eco-friendly Future Materials Team. Yoo previously served as head of POSCO's raw materials office, management strategy office, and industrial gas and hydrogen business division, and will be responsible for promoting new growth businesses such as hydrogen and secondary batteries.

Additionally, the appointment of three outside directors?Professor Son Sung-kyu of Yonsei University, Yoo Jin-nyung, former president of LG Chem, and current outside director Park Hee-jae?was approved. Professor Son has extensive experience and expertise in accounting and auditing, having served as president of the Korean Accounting Association, non-standing member of the Securities and Futures Commission, and chairman of the Korea Exchange disclosure committee. Yoo, former president of LG Chem, joined LG Chem as a researcher and served as CTO and head of the technology research institute, recognized as an expert in new technology development including secondary batteries and advanced materials.

Furthermore, Kim Hak-dong, vice chairman of POSCO, was appointed as a non-executive director to expand synergies between the holding company and the steel business company. POSCO Holdings concluded the shareholders' meeting without major surprises, significantly alleviating the resentment previously expressed among shareholders.

Some shareholders had voiced dissatisfaction, citing the company's failure to maintain a consolidated dividend payout ratio of around 30% until 2022 as promised, and complaints of "alienating shareholders" during the process of promising to relocate the headquarters to Pohang without shareholder consent.

In response to a shareholder's question about dividend policy, Chairman Choi explained, "We increased dividends by 17,000 KRW compared to the previous year, resulting in a dividend yield of about 6.2%, which is expected to be higher than other large companies. We ask for shareholders' understanding as substantial investment funds are needed for new growth areas."

He also reaffirmed the intention to strengthen shareholder return policies going forward. Chairman Choi stated, "We have promised to retire some of the treasury shares held by the company within this year, and are reviewing the optimal scale and timing of retirement from the 13.26% of shares held, reflecting market expectations," adding, "We will implement shareholder return policies, including treasury share retirement, after discussions with the board of directors."

This content was produced with the assistance of AI translation services.