Why Choi Jung-woo, once seen for a '3rd Term', dropped out of Posco's next chairman candidate list

Choi Jeong-woo, who was expected to make POSCO Group's first-ever 'third consecutive term' bid, has been excluded from the next chairman candidate pool, drawing attention to the background behind this decision.

Recently, Kim Tae-hyun, chairman of the National Pension Service, directly raised issues regarding the chairman selection process, causing considerable waves inside and outside POSCO. As a result, with increased pressure on the board and the company, the prevailing interpretation is that Chairman Choi was excluded from the candidate pool.

The Candidate Recommendation Committee (CRC), composed of outside directors, also expressed its intention to conduct a fair review regardless of whether Chairman Choi attempts reappointment, making it difficult to guarantee his success even if he tries.

Some speculate that despite ongoing controversies surrounding him since the launch of the Yoon Seok-yeol administration, Choi, who had remained silent, may have made a decisive move at the last moment for the sake of the group and his juniors.

On the 3rd, POSCO Holdings held the 4th CRC meeting and, through the first screening of internal candidates who submitted applications, unanimously selected eight individuals as 'reputation inquiry candidates' for the next stage. Chairman Choi was not included among them.

The CRC did not clarify whether Chairman Choi submitted an application or voluntarily withdrew from the candidate pool.

A POSCO Holdings official explained, "The CRC does not disclose the process of shortlisting internal candidates, so we cannot confirm whether Chairman Choi submitted an application."

Until recently, Chairman Choi had been reserved about his intention to pursue a third term, so there was a prevailing view that he might be willing to challenge. However, a significant turning point came at the end of last month when the National Pension Service intervened.

On the 28th, Chairman Kim stated, "The appointment of the representative of POSCO Holdings, a widely held company, should provide fair opportunities without discrimination between insiders and outsiders to maximize shareholder value, as stated in the KT case." Although he mentioned procedural fairness, the message was widely interpreted as targeting Chairman Choi.

In response, the CRC immediately held a late-night meeting and issued a statement, emphasizing that they would conduct the next chairman selection process independently, transparently, and fairly, and requested that no issues be raised.

Park Hee-jae, chairman of the CRC, told this publication, "Since the CRC shortlists candidates and directly submits them to the shareholders' meeting, the current management cannot structurally participate, nor do they know who the candidates are," adding, "Being appointed during the current chairman's term means the appointment was made at a shareholders' meeting held during the chairman's term and has nothing to do with the current chairman."

The exchange of arguments between the National Pension Service and the CRC ultimately increased the burden on POSCO Group. Regardless of whether Chairman Choi was included as a candidate, the atmosphere suggested that unnecessary controversies could prolong.

[Image source=Yonhap News]

Additionally, the CRC released a statement clarifying that "the current chairman's reappointment is a personal freedom" and that it does not affect the candidate screening process. Chairman Park explained, "Whether the incumbent chairman challenges for reappointment or not, the CRC has no particular interest," adding, "Even if he challenges for reappointment, it does not influence the screening process."

Chairman Choi, who became POSCO Group chairman in 2018, has been serving since successfully securing a second term in 2021. Since the launch of the Yoon administration, he was excluded from all presidential overseas economic delegations, sparking 'passing' controversies. He also did not attend the '2024 Economic Community New Year's Meeting' held on the 2nd, following last year.

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