POSCO, National Pension Service Rebut 'Fairness of CEO Appointment'... "Conducting a Cold and Strict Review"

Statement from CEO Candidate Recommendation Committee Chair... Unusually Released at 1 AM

POSCO Holdings stated, "Regardless of whether Chairman Choi Jung-woo supports it or not, we will approach the evaluation with impartiality, coldness, and strictness." This was an immediate rebuttal through a statement after the largest shareholder, the National Pension Service, raised fairness issues regarding the method of selecting the next chairman of the POSCO Group. Concerns are emerging that the conflict between POSCO and the National Pension Service may intensify over Chairman Choi's third term.

In a statement issued around 1 a.m. on the 29th under the name of Park Hee-jae, chairman of the POSCO Holdings CEO Candidate Recommendation Committee, POSCO Holdings said, "If the current chairman supports a third term, that is his personal freedom."

Entrance door of POSCO building, Yeoksam-dong, Gangnam-gu, Seoul. Photo by Younghan Heo younghan@

The statement came shortly after Kim Tae-hyun, chairman of the National Pension Service, emphasized fair and transparent standards in a call with some media the previous day. Unusually, the rebuttal material was distributed at 1 a.m. Chairman Kim stated, "The appointment of the POSCO Holdings representative should provide equal opportunities without discrimination between internal and external candidates, as in the KT case," and added, "The chairman appointment process should be conducted publicly according to fair and transparent standards." He specifically cited KT's CEO selection case, mentioning ▲ direct recruitment of CEO candidates ▲ an external expert-centered advisory committee for candidate selection ▲ and a committee composed mainly of newly appointed outside directors recommending CEO candidates.

POSCO Holdings also refuted claims that the chairman selection method was merely for show. Chairman Park said in the statement, "We plan to proceed independently, transparently, and fairly with the next chairman evaluation process according to the standards set in the new governance regulations announced on the 19th," and added, "We will disclose this process transparently and frequently." POSCO Holdings maintains that forming the candidate recommendation committee with outside directors does not violate internal regulations.

Previously, POSCO Holdings abolished the priority evaluation system for the incumbent chairman's reappointment and launched the CEO Candidate Recommendation Committee at an extraordinary board meeting. However, since all seven outside directors forming the committee were appointed or reappointed during Chairman Choi's tenure, the industry has raised controversies such as "showcase fairness" and a "second KT incident." Previously, an incumbent chairman had to declare their intention to seek reappointment at least 90 days before the shareholders' meeting, but with this rule abolished, Chairman Choi was naturally included in the first candidate pool (long list).

Although there were reactions suggesting that the National Pension Service chairman's objections might reset the POSCO Holdings next chairman selection process, POSCO Holdings' rebuttal indicates that the controversy will likely continue.

On September 8th, Choi Jung-woo, Chairman of POSCO Group and Chair of the Korea-Australia Economic Cooperation Committee, delivers the opening remarks at the 44th Annual Meeting of the Korea-Australia Economic Cooperation Committee held at JW Marriott Hotel Seoul in Seocho-gu, Seoul. Photo by POSCO Holdings

Experts evaluated that the appointment of the CEO of POSCO Holdings, a listed company, should be judged from the perspective of shareholders and investors. Professor Kim Woo-jin of Seoul National University said, "Fairness issues were raised regarding the existing appointment process, and the current plan came after a procedure to amend it," adding, "It is important to calmly observe whether the newly established appointment process is properly carried out." He also said, "Decisions should be made aiming to maximize the value of POSCO's shares." Professor Kim Woo-chan of Korea University said, "The CEO should be judged based on performance such as results and stock price," and added, "KT's case involved a CEO who challenged reappointment but was clearly in violation of the law, such as embezzlement, so it is difficult to simply compare the two cases."

The POSCO Holdings CEO Candidate Recommendation Committee plans to create a long list of about 20 to 30 candidates by January 8 next year, including internal candidates who have undergone the chairman candidate development program, shareholder recommendations, and external candidates recommended through search firms. Then, with advice from an external advisory committee composed of prominent figures, the list will be quickly narrowed down to a final shortlist for the next chairman selection.

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