April 23, 2024

• 

[THE INVESTOR] The number of candidates vying to be the next chief of Korean steel giant POSCO has narrowed down to six candidates, the firm said on June 15, amid ongoing criticism on the selection process. 

The firm’s CEO-search council -- consisting of five outside board members -- picked six candidates from 11 in its seventh round of meeting held on June 14. The steelmaker declined to disclose the list, saying it is to enhance fairness and block unnecessary external influences and conflicts within candidates. 

The council will shortlist five finalists in the next meeting to be held on June 20. POSCO will then interview the finalists and select a new chief within this month. The candidate must gain approval from the board as well as shareholders at a meeting set for July. 

POSCO has been on an all-out search for a new head after its incumbent CEO Kwon Oh-joon decided to step down in April, without completing two years left in his second term. There have been rumors that he is stepping down due to political pressure, but he has denied such claims. Kwon will keep his position until the new CEO takes the reins. 

Since then, the steel giant has faced criticism that its selection process is not transparent. POSCO refuted it, denying media reports that former CEOs and Cheong Wa Dae officials are interfering in the nomination process. 

“We will continue to share our process with the public,” the firm said in a statement. “POSCO is not under any kind of (political) pressure.”

The government formerly owned 75 percent of POSCO when it was established in 1968. Though the steelmaker became privatized in 2000, government authorities have continued to influence company management, with POSCO chiefs changing when new administrations take office.

By Ahn Sung-mi (sahn@heraldcorp.com)