Seoul Metropolitan Police Agency Conducts Direct Investigation
Amid police investigations into allegations of illegal expenditures on a local board meeting in Canada by POSCO Holdings, the holding company of POSCO Group, new suspicions have emerged regarding similarly extravagant overseas board meetings held in the past.
According to a comprehensive report by CBS No Cut News on Jan. 14, 16 directors, including Choi Jeong-woo, chairman of POSCO Holdings, held a one-day board meeting in August 2019 at the POSCO Center in Beijing, China. Around the time of this event, they traveled around for seven days in areas including Beijing and Mount Baekdu.
The investigation revealed that the board used a charter flight to move from Shoudu Airport in Beijing to Yanji Airport for the Mount Baekdu tour. During their stay in Mount Baekdu, they reportedly indulged in expensive foods such as local Matsutake mushrooms and Russian king crab.
Furthermore, during their stay in Beijing, the group stayed in world-renowned luxury hotels and enjoyed high-priced meals with wine at Chinese and French restaurants.
The investigation also found that the board enjoyed a round of golf at a prestigious Beijing golf course, which has hosted several international golf tournaments. POSCO reportedly bore the expenses for the golf fees, caddy fees, and golf apparel.
For these extravagant overseas board meetings, about 700-800 million won was spent, with a significant portion covered by POSCO China, a subsidiary of POSCO. Based on the investigation, this amounted to approximately 7 million won per person per day, nearing a total of 50 million won in expenses.
The issues raised against last year’s Canada Board Meeting of POSCO Holdings were found to be similar to those of the 2019 China Board Meeting.
An anonymous internal source shared, “I heard that the luxury level of the board meetings in Beijing and Mount Baekdu was true, just as reported for the Canada board meeting.”
Particularly noteworthy is that this occurred about a year before Choi declared his intention to be re-elected. In December 2020, following a qualification review by the POSCO CEO Candidate Recommendation Committee, composed of external directors, the POSCO board confirmed Choi’s re-election.
With similar circumstances emerging, the police, already investigating Chairman Choi Jeong-woo and 16 other directors for embezzlement and violation of the Improper Solicitation and Graft Act in relation to the Canada board meeting, are expected to expand their investigation.
Meanwhile, the POSCO Holdings board held a meeting in Canada in August 2023. Allegations were previously raised regarding expenses incurred during this period, including charter flights, meal costs, and golf expenses, totaling around 680 million won. These expenses were reportedly shared between the subsidiaries POSCO and POSCO-Canada.