Posco’s six chairman candidates unveiled

Posco Holdings has confirmed a total of six finalists to compete for the Korean steel giant's top post, as the current Chairman Choi Jeong-woo’s official term is due to expire in March.

On Wednesday, the company's CEO Recommendation Committee unveiled the six chairman candidates, including three Posco veterans and three outsiders, after their eight meetings over the past few weeks.

The committee has been reviewing the finalists since Dec. 21 after Chairman Choi chose not to seek a third term.

The finalists among the Posco veterans include:

Kim Ji-yong, director of Posco Holdings' New Experience of Technology Hub, who has held pivotal roles in Posco, including leading its advanced materials business division, overseeing its Indonesian subsidiary and managing Gwangyang Steelworks. His expertise extends to Posco's involvement in Indonesia's nickel smelting plant joint ventures and to the technology hub, which focuses on eco-friendly materials, AI and secondary batteries.

Former Posco President Chang In-hwa, who progressed from the vice presidency of the Research Institute of Industrial Science and Technology to various roles within Posco E&C and Posco's technology and investment headquarters. Change eventually assumed the positions of Posco president and steel division head.

Former Posco Holdings President Chon Jung-son, who spearheaded Posco's global infrastructure division and undertook multiple positions within the holding company, such as chief strategy officer, where he managed steel, eco-friendly infrastructure and financial operations.

The finalists from outside of Posco include:

Kwon Young-soo, former vice chairman and CEO of LG Energy Solution, who is recognized for his ability to identify and nurture new business opportunities. He has held leadership positions at LG Group’s key affiliates including LG Display, LG Chem and LG Uplus.

Woo Yoo-cheol, former Hyundai Steel vice chairman, who has ascended ranks in the steel sector, transitioning from Hyundai Heavy Industries to positions at Hyundai Engineering, Hyundai Space and Aircraft Co. and Hyundai Mobis before becoming Hyundai Steel’s vice chairman.

Kim Dong-seop, president of Korea National Oil Corporation, who is renowned in the oil industry and previously served as the CTO of SK Innovation. He is lauded for his contributions to ESG management and carbon initiatives at SK Innovation.

The CEO Recommendation Committee will conduct thorough interviews with the six candidates from Feb. 7 to 8, with the final candidate to be decided on the second day. The official appointment will take place after the general shareholders' meeting scheduled for March 21.

While emphasizing "professionalism and leadership capabilities for future leaps and changes," the committee reaffirmed the importance of transparency and fairness in the selection process, in addition to maintaining confidentiality commitments.

At the earnings conference call conducted hours before the shortlist announcement, Jeong Ki-seop, Posco Holdings' chief strategy officer, reaffirmed the company's steadfast commitment to the advanced materials sector, including second battery materials, to its investors.

"Posco Holdings is currently invested in the extraction of lithium following our acquisition of mineral resources from the Argentine salt lakes," Jeong said. "We are engaged in lithium production through a joint venture with Australia’s Pilbara Minerals and are currently in the stages of lithium production in Korea that could be advantageous under the US Inflation Reduction Act."

The CSO added that the investments will reach a zenith by 2026, yielding substantial results thereafter, while assuring that the appointment of the new CEO will not reverse or halt ongoing investments.

Posco Holdings showed a 27.2 percent on-year decrease in operating profit to 3.5 trillion won ($2.6 billion) in 2023, alongside a 9 percent reduction in revenues to 77.1 trillion won in the same period. The company's net profit also decreased by 48.2 percent to 1.8 trillion won.