A controversy between POSCO and the National Pension Service (NPS), POSCO’s largest shareholder, is showing signs of escalation as the latter questions POSCO Group’s fairness in selecting the its next chairman.
According to industry sources on Dec. 29, Kim Tae-hyun, chairman of the NPS, said in a media interview on Dec. 28, “The selection of the next chairman of POSCO should be fair without discrimination against those from the inside and the outside and openly carried out according to fair and transparent standards and procedures.”
Regarding members of the CEO Candidate Nomination Committee, NPS Chairman Kim added, “It will be up to shareholders, investors, and the market to judge whether the existing body composed of only outside directors is fair and can represent the interests of shareholders.”
Earlier, POSCO abolished the priority screening system for the reappointment of the incumbent chairman and introduced the Presidential Candidate Selection Advisory Group composed of external personnel in a meeting of the board of directors on Dec. 19. However, the NPS has seemingly decided that there are still issues with fairness in the selection process.
Choi Jung-woo, chairman of POSCO Group, has not openly announced his intention to seek re-election. But Choi is already on the list of candidates for the next chairman due to the change in POSCO Group’s bylaws.
“If the current chairman wants to apply for a third term, that is his personal choice,” said Park Hee-jae, chairman of the CEO Candidate Nomination Committee. “Regardless of whether the current chairman applies or not, the committee will conduct an objective and strict screening process without a bias toward anyone for the sake of POSCO’s future and the interests of POSCO shareholders.”