POSCO Holdings' First General Meeting of Shareholders... Chairman Choi Jeong-woo: "Real Value Management to Enhance Group Value" (Summary 2)

Choi Jung-woo, Chairman of POSCO Group, "Dramatic Enhancement of Group Value"
POSCO Holdings' First General Meeting Concludes Without Incident
Reaffirms Plan to Strengthen Shareholder Return Policy

[Asia Economy Reporter Oh Hyung-gil] "This year marks the first year of POSCO Group's transformation into a holding company system, becoming a truly 100-year-old company. POSCO Holdings will dramatically enhance the value of POSCO Group through 'Real Value' management."

Choi Jeong-woo, Chairman of POSCO Group, presented a blueprint on the 18th to significantly enhance the group's future value.

At the 54th regular shareholders' meeting of POSCO Holdings held at POSCO Center in Gangnam-gu, Seoul, Chairman Choi stated, "As a holding company, POSCO Holdings will faithfully serve as a platform for balanced growth of the group by developing future portfolios, restructuring group businesses and securing synergies, leading ESG (environment, society, governance) management, and establishing the identity of corporate citizenship."

He also presented the group's five major directions. He proposed ▲ completing steel carbon neutrality ▲ driving new mobility ▲ leading green energy ▲ realizing future housing ▲ securing global food resources, emphasizing, "We will dramatically enhance the group's value through Real Value management." Real Value management is explained as 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 Support Chairman Choi Jeong-woo

Chairman Choi also announced a strategy to enhance expertise centered on business companies to increase competitive advantages in the seven core businesses presented at the time of the holding company's launch: ▲ steel ▲ secondary battery materials ▲ lithium and nickel ▲ hydrogen ▲ energy ▲ construction and infrastructure ▲ agriculture and bio.

Shareholders attending the first shareholders' meeting since the launch of the holding company supported Chairman Choi's initiatives by approving all proposed agendas. Of the approximately 75.62 million voting shares, 56.07 million shares (74.1%) were present at the meeting, including proxies and prior electronic voting.

Key agendas included the reappointment of Jeon Jung-seon, Head of POSCO Holdings' Management Strategy Team, and Jeong Chang-hwa, Head of the Future Technology Research Institute, as inside directors, and the new appointment of Yoo Byung-ok, Head of POSCO Holdings' Eco-friendly Future Materials Team. Yoo previously served as POSCO's Raw Materials Director, Management Strategy Director, and Head of Industrial Gas and Hydrogen Business Division, and will be responsible for promoting new growth businesses such as hydrogen and secondary batteries.

The appointment of three outside directors?Professor Son Seong-gyu of Yonsei University, former LG Chem President Yoo Jin-nyeong, and current outside director Park Hee-jae?was approved. Professor Son is the President of the Korean Accounting Association, a non-standing member of the Securities and Futures Commission, and Chair of the Korea Exchange Disclosure Committee, possessing diverse experience and expertise in accounting audits. Former LG Chem President Yoo joined LG Chem as a researcher and served as Chief Technology Officer (CTO) and Head of the Technology Research Institute, recognized as an expert in new technology development including secondary batteries and advanced materials.

Kim Hak-dong, Vice Chairman of POSCO, was appointed as a non-executive director to expand synergies between the holding company and steel business companies. POSCO Holdings concluded the shareholders' meeting without major surprises, significantly alleviating shareholder concerns.

Announcement of Strengthened Shareholder Return Policy

Some shareholders had expressed dissatisfaction that the company's promise to maintain a consolidated dividend payout ratio of around 30% until 2022 was not kept, and that they felt "alienated" during the process of promising the headquarters' relocation to Pohang without shareholder consent.

In response to a shareholder's question about the dividend policy, Chairman Choi said, "We increased the dividend to 17,000 KRW, 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 in new growth areas."

He also reaffirmed the intention to strengthen shareholder return policies going forward. Chairman Choi added, "We have promised to retire some of the treasury shares held by the company within this year, and we are reviewing the optimal scale and timing for retiring shares from the 13.26% treasury shares held, reflecting market expectations. 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.