April 25, 2024

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[THE INVESTOR] “Posco needs to be armed with a new vision to leap forward in the next 100 years. Under the new vision ‘With Posco,’ we need to become a corporate citizen side by side with society,” said Choi Jeong-woo on July 27 after he was named Posco’s ninth leader in a shareholders meeting.

The world’s fifth-largest steelmaker will from here on strengthen its steel business via world premium giga steel, while also bolstering its nonsteel business with new strategies and opportunities.

 

Posco CEO & Chairman Choi Jeong-woo

As the first step, Choi hinted at a possible merger of Posco Chemtech that produces secondary battery anode materials, and cathode material maker Posco ESM. Choi was formerly CEO of Posco Chemtech. 

"I think there is a need to merge companies that make anode materials and cathode materials for synergy in terms of research and development, and marketing," said Choi.

He also said as he sees opportunities in the bio sector and would venture into the field. 

“Most workers at Posco think steel is the center (of the company). I’m thinking it would be better to hire a professional out of the company to create an enterprising and creative corporate culture."

Posco's second quarter operating profit rose 27.9 percent to 1.2 trillion won -- mainly from steel-related sales -- despite trade pressure from the US. It will aim to generate 17 trillion won ($15.1 billion) in earnings in the secondary cell material business by 2030.

Choi is Posco’s first chairman with a nonengineering background and the first non-Seoul National University graduate to lead the company in 20 years. The 61-year-old graduated from Pusan National University and joined Posco in 1983.

As an expert in finance strategy planning and corporate strategy development, Choi was the head of the Posco Value Management Office, the company’s de facto control tower, in 2015 and led the company’s four-year restructuring under former Chairman Kwon Oh-joon.

As a result of the overhaul, the number of Posco affiliates here was reduced to 38 companies from 71, and overseas affiliates to 124 from 181, the company said.

By Kim Bo-gyung(lisakim425@heraldcorp.com)