April 19, 2024

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[THE INVESTOR] POSCO CEO Kwon Oh-joon is keen on a second term as the chief of South Korea’s largest steelmaker, according to reports on Dec. 9.

Kwon reportedly expressed his wish to serve another term at the board of directors meeting held in Seoul. He took office as the POSCO chairman on March 14, 2014, and his current term ends on March 17, 2017. 

According to industry watchers, Kwon’s bid will depend more on the unfolding presidential scandal than his achievements as the head of POSCO.

It has been alleged that Kwon’s appointment was orchestrated by Choi Soon-sil, President Park Geun-hye’s confidante accused of meddling in state affairs.

It has been alleged that Kwon aided Choi’s manipulation of state and corporate affairs by appointing individuals with connections to Choi in POREKA, an ad agency formerly affiliated to the steelmaker.

POREKA itself is at the center of allegations brought against Choi’s associate Cha Eun-taek. Cha has been accused of a number of wrongdoings including attempting to take over POREKA by threatening the chief of a small agency selected as the preferred bidder.

The majority of POSCO chairmen have served more than one term since the 1990s, and POSCO is considered to have achieved significant goals under his watch.

Since taking office, Kwon oversaw major restructuring measures and the company’s quarterly operating profit recovered to over 1 trillion won (US$856.73 million) for the first time in four years. 

By Choi He-suk (cheesuk@heraldcorp.com)