Dongkuk Steel Human Division... Returning Director Jang Se-ju "Will Coordinate with Jang Se-uk"

Temporary Shareholders' Meeting on the 12th
Appointment of Chairman Jang as Registered Director
Brotherly Management Resumes After 8 Years

Dongkuk Steel has finalized its spin-off and will transition to a holding company structure. On the 12th, at an extraordinary general meeting held at the Ferrum Tower Ferrum Hall in Euljiro, Jung-gu, Seoul, Dongkuk Steel approved all agenda items, including the 'Approval of the Spin-off Plan.' Chairman Jang Se-ju was appointed as an inside director for the first time in eight years, marking his return to management.

Jang Se-ju, Chairman and Inside Director of Dongkuk Holdings (tentative name)
[Photo by Dongkuk Steel]

Jang Se-wook, Vice Chairman and younger brother of Chairman Jang Se-ju, stated at the general meeting, "It is time to seize growth momentum through change," adding, "Increasing corporate value through sustainable growth directly translates to shareholder returns." Vice Chairman Jang personally presented the spin-off report at this extraordinary general meeting, following the regular shareholders' meeting in March. Regarding shareholder return policies, he detailed the minimum dividend standards, maximum dividend standards, and deficit dividend standards as promised at the regular shareholders' meeting.

After establishing the holding company structure, Dongkuk Steel plans to further review shareholder return measures such as acquiring and retiring treasury shares. Vice Chairman Jang expressed his commitment to new growth businesses on the day, saying, "We will prioritize areas related to steel business such as materials, parts, and equipment," and added, "After transitioning to a holding company, we will establish or acquire a venture capital company (CVC) to foster new and emerging businesses."

After the Dongkuk Steel temporary shareholders' meeting, Chairman Jang Se-ju (right) and Vice Chairman Jang Se-wook are answering questions from the press.
[Photo by Dongkuk Steel]

Chairman Jang, who was appointed as an inside director on the same day, said after the extraordinary general meeting, "I will support Vice Chairman Jang Se-wook in leading the company," and added, "I will devote my experience and wisdom one last time to contribute to the sustainable growth and development of the Dongkuk Steel Group." Regarding the discovery of new growth engines, he stated, "We will seek ways to strengthen the global competitiveness of the steel industry amid international relations with countries like Japan and the United States," and "We will secure advanced technologies in parts fields such as special materials in response to changes in the automotive industry."

With the approval of the spin-off, Dongkuk Steel will be divided into Dongkuk Holdings (tentative name), Dongkuk Steel (tentative name), and Dongkuk CM (tentative name), with each company establishing its top management team. Chairman Jang was appointed as an inside director of the surviving company, Dongkuk Holdings, and will plan the group's future growth strategy alongside CEO Vice Chairman Jang. The company stated that the appointment of Chairman Jang as a registered executive is to strengthen 'responsible management' as the chairman of the Dongkuk Steel Group facing change. The operating companies will be managed by professional executives. Choi Sam-young, Vice President, will lead the hot-rolled business company Dongkuk Steel, and Park Sang-hoon, Executive Director, will serve as CEO of the cold-rolled business company Dongkuk CM.

Choi Sam-young, Vice President and CEO of Dongkuk Steel (tentative) (left), and Park Sang-hoon, Vice President and CEO of Dongkuk CM (tentative)
[Photo by Dongkuk Steel]

Dongkuk Holdings, which is scheduled to transition to a holding company, will focus on discovering sustainable growth engines for the group centered on Chairman Jang and Vice Chairman Jang. It plans to discover synergy businesses in steel and materials-parts-equipment sectors and expand the group's related business portfolio in IT and logistics. It will also strive to secure future new businesses through the establishment of a corporate venture capital (CVC) under its umbrella.

The newly established hot-rolled business company Dongkuk Steel will focus on mid- to long-term eco-friendly growth strategy 'Steel for Green' as its core task under the leadership of professional executive Vice President Choi Sam-young. Choi, an engineer by background, is a 'field expert' who has worked at the Incheon, Dangjin, and Pohang plants. He has specialized strengths in equipment and production areas.

The newly established cold-rolled business company Dongkuk CM will be led by Executive Director Park Sang-hoon, who has been promoted to Vice President and appointed CEO, to realize the 'DK Color Vision 2030.' The goal is to achieve 2 trillion KRW in sales related to color steel sheets and establish a production system of 1 million tons by 2030. Park, an engineer by background, has extensive field and practical experience in the cold-rolled sector, having served as the head of the Busan plant and head of cold-rolled sales.

Vice Chairman Jang Se-wook presenting at Dongkuk Steel's extraordinary general meeting of shareholders on the 12th
[Photo by Dongkuk Steel]

The effective date of the Dongkuk Steel Group spin-off is June 1. The surviving company and the two newly established companies will undergo listing changes and re-listing on June 16. Existing company shareholders will receive shares split and distributed equally according to their shareholding ratios in the surviving and newly established companies. Dongkuk Steel plans to complete additional procedures such as in-kind contributions through a public tender offer and aims to transition to a holding company structure by the end of October.

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