POSCO Next Chairman Candidate Jang In-hwa... Organizational Restructuring and Executive Personnel Changes Expected

Official Approval for Next Month's General Meeting Pending
Authentic 'Steelman' from POSCO Background

Jang In-hwa, the next chairman candidate set to lead the POSCO Group, is expected to soon begin the handover process for the chairman position. POSCO Holdings is also reported to be preparing a separate office for Jang. Once Jang officially receives approval for the chairman position at next month's shareholders' meeting, the long-delayed group organizational restructuring and key executive appointments are expected to follow.

According to industry sources on the 13th, POSCO Holdings will soon start familiarizing Jang with core business operations. Jang is scheduled to officially assume the chairmanship of POSCO Group following the board meeting and the regular shareholders' meeting on March 21.

With just over a month remaining, Jang is likely to focus on reviewing key tasks, including personnel matters. A graduate of Seoul National University’s Department of Naval Architecture and Ocean Engineering, he joined the Pohang Institute of Industrial Science and Technology (RIST) in 1988 and has held positions such as head of POSCO’s New Business Office, Steel Marketing Solutions Office, Technology Investment Headquarters, Technology Research Institute, and Steel Production Headquarters, earning a reputation as a ‘steelman.’

Jang In-hwa, former CEO of POSCO (Photo by POSCO Holdings) [Image source=Yonhap News]

The biggest focus after Jang’s inauguration as chairman will be organizational and personnel restructuring. Many inside and outside the group expect a large-scale reshuffle and reorganization that had been postponed until after the chairman’s appointment. Given that the Choi Jung-woo administration has lasted for five years, there is a prevailing view that a major generational change will take place.

However, since Jang was born in 1955, two years older than Chairman Choi (born 1957), it is widely believed that replacement decisions will not be based solely on age. There is more weight to the expectation that personnel changes will be centered on ability and performance.

Attention also focuses on how far the generational change will extend among the current executive team, including Jeong Ki-seop, president of POSCO Holdings (born 1961), Kim Hak-dong, vice chairman of POSCO (born 1959), Jeong Tak, CEO of POSCO International (born 1959), Kim Jun-hyung, CEO of POSCO Chemical (born 1962), and Han Sung-hee, CEO of POSCO E&C (born 1961), who were also selected as candidates.

There are also expectations that investments will be made to revitalize the company. Especially since Jang is a ‘steelman,’ it is anticipated that investments in the steel sector will increase. The steel market has recently struggled due to the global economic downturn. POSCO’s sales and operating profit in the fourth quarter fell by 9.2% and 8.7%, respectively, compared to the previous year. Last year’s operating profit of POSCO also dropped to 2.083 trillion won, lower than the 2.295 trillion won in 2022, which was affected by flooding at the steel mill caused by Typhoon Hinnamnor.

Investment to respond to carbon emission reduction regulations is also urgent. Recently, POSCO began construction of a new electric furnace plant in Gwangyang and has also started the hydrogen reduction steelmaking (HyREX) project. The Hydrogen Reduction Steelmaking Development Center at the Pohang Steelworks, which opened last month, plans to complete a 300,000-ton annual capacity ‘HyREX’ pilot plant by 2027 and push for commercialization. Additional investment is inevitable.

Jeong, who was selected as a candidate, served as president of POSCO until 2021 when it operated as a business-type holding company and was the architect of the transition to an eco-friendly materials company. After assuming the chairmanship, he is also expected to maintain continuous interest in secondary battery materials such as cathode and anode materials, including raw materials.

There is also interest in whether the board will be reorganized in relation to the ‘ultra-luxury board’ controversy that arose during the candidate selection process. Since the candidate himself has been reported to the police on charges of breach of duty related to a business trip to China’s board meeting, there are calls for him to confront this issue head-on.

The remaining variable is the largest shareholder, the National Pension Service. Some speculate that the National Pension Service may veto Jang’s appointment before the shareholders’ meeting. There is also a possibility of collective opposition from shareholders before the meeting.

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