Jang In-hwa "Considering Abolishing Stock Grants and Partial Return of Executive Compensation"

Inauguration Ceremony at Pohang Headquarters
Launch of 'Governance Improvement TF'

Jang In-hwa, Chairman and CEO of POSCO Group, is smiling brightly after the 56th POSCO Holdings Annual General Meeting held at the POSCO Center in Gangnam-gu, Seoul on the morning of the 21st. Photo by Yonhap News

On the 21st, Jang In-hwa, the newly appointed chairman of POSCO Group, who officially took office, stated, "I will consider various measures such as abolishing the stock grant system that allows executives to relinquish their privileges and partially returning executive compensation."

At the inauguration ceremony of the 10th chairman held at the POSCO Holdings headquarters in Pohang, Gyeongbuk, Chairman Jang said, "We will enhance the ethical awareness of executives and employees and further strengthen compliance management."

The stock grant system is a system where the company provides shares it holds to executives and employees free of charge. It was introduced during the tenure of former Chairman Choi Jung-woo to strengthen responsible management. However, it became controversial as it was paid to some executives even amid the group's deteriorating management situation due to damages such as the flooding at the Pohang Steelworks.

Chairman Jang also expressed his intention to launch a 'Governance Improvement Task Force (TF)' immediately upon taking office. He said, "POSCO Group is a company where ownership and management are separated and is recognized for its advanced governance at a global level," but added, "There is a national expectation for us to be more exemplary than any other company."

He continued, "Since following the will and wishes of the people is the true spirit of POSCO Group, we will carefully review measures to meet these expectations." Along with this, he announced the establishment of a new 'POSCO Clean Committee' involving external experts and operating independently, and declared the launch of a 'New Ethical Management.'

As the future blueprint for POSCO Group, Chairman Jang stated, "It will be a base camp leading material innovation and moving toward an eco-friendly future."

Jang In-hwa, the 10th chairman of POSCO Group, is entering the 56th regular shareholders' meeting held on the 21st at POSCO Center in Gangnam-gu, Seoul. Photo by POSCO Holdings

He presented a new management vision of "opening the future with materials and innovation toward becoming a top-tier company" by regaining a super-gap competitive advantage in the steel business and securing future innovative technologies in the secondary battery materials business. Regarding the steel business, Chairman Jang said, "We will launch products with reduced carbon emissions early and realize an economically viable low-carbon supply system through global cooperation on carbon-neutral steelmaking technologies." He also revealed plans to evolve the existing smart factory system into an 'Intelligent Factory' covering all processes from order receipt to production and sales, aiming to achieve super-gap level productivity.

Regarding the secondary battery materials business, he said, "We will quickly transfer the operational capabilities accumulated in the steel industry to enhance competitiveness across the entire value chain." Chairman Jang emphasized, "For investment projects scheduled to start full-scale operations this year, we will achieve normal operating rates early and secure competitive cost and quality levels," adding, "We will take the recent temporary stagnation in the electric vehicle market as an opportunity to secure high-quality resources and continue investing steadily."

Furthermore, he stated, "In promising future fields such as solid electrolytes and lithium metal, we will lead the establishment of technical standards and rapidly secure future innovative technologies by collaborating with customers from the early market stages." Chairman Jang also said, "We will continue to discover new businesses led by the holding company," adding, "Beyond the existing venture-focused discoveries, we will diversify growth methods through mergers and acquisitions (M&A) of leading companies to accelerate performance creation."

Chairman Jang said, "The foundation that made today's POSCO Group possible is the unwavering dedication to 'Steelmaking for the Nation,' the indomitable entrepreneurial spirit, and the infinite devotion and sacrifice of the employees," and added, "The ideology of 'Steelmaking for the Nation' will be sublimated into 'materials opening the future,' and the pioneering spirit of the founding generation will develop into 'innovation toward becoming a top-tier company.'" He then urged the participation of executives and employees, saying, "I will start a '100-day on-site accompaniment' seeking your empathy and wisdom."

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