Chairman Choi Jung-woo "Establishing Management Plans to Prepare for 3 Major Risks: COVID-19, Exchange Rates, and the US Presidential Election"

[Asia Economy Reporter Hwang Yoon-joo] Choi Jung-woo, chairman of POSCO, revealed that he is currently establishing next year's management plan to prepare for the three major risks: the novel coronavirus infection (COVID-19), exchange rates, and the U.S. presidential election. He also mentioned plans to conduct the regular executive personnel appointments in December this year.

Chairman Choi attended the "41st Korea-Australia Economic Cooperation Committee Joint Meeting" held at the Federation of Korean Industries (FKI) in Yeouido, Seoul, on the morning of the day, stating, "COVID-19, exchange rates, and the U.S. presidential election are all risks in formulating next year's management plan."

If Joe Biden, the U.S. president-elect, is confirmed as president, the domestic steel industry, including POSCO, may reduce protectionist risks such as tariffs compared to previous years. However, regulations related to environmental issues, such as carbon dioxide emissions, could pose new burdens.

Chairman Choi also named "POSCO Chemical" as the best-managed affiliate this year. Having driven the POSCO Group's efforts to secure new growth engines, Chairman Choi is expected to strengthen the secondary battery (electric vehicle battery materials) business next year as well.

Since his inauguration in 2018, Chairman Choi has been expanding investments in the energy and battery materials business sectors. In particular, POSCO Chemical, an affiliate where Chairman Choi worked before becoming group chairman, has seen its valuation rise alongside the rapid growth of the electric vehicle market.

Chairman Choi also disclosed plans for year-end personnel appointments. He mentioned, "We plan to conduct regular executive personnel appointments in December, around the same time as last year." Industry insiders interpret this as Chairman Choi expressing his intention to renew his term, which expires in March next year.

Earlier, on the 6th, Chairman Choi expressed his intention to renew his term at the POSCO board meeting, and the POSCO board resolved to operate a CEO candidate recommendation committee.

Currently, the candidate recommendation committee is conducting internal and external evaluations, including interviews, to assess Chairman Choi's eligibility for renewal. If he passes the qualification review, he will be recommended as the next chairman candidate and will be finally confirmed as the next chairman with a three-year term through the general shareholders' meeting and board meeting in March next year. The POSCO board plans to hold a board meeting on the 11th of next month to decide on Chairman Choi's reappointment.

Meanwhile, at the event, Korean and Australian businesspeople emphasized the need to strengthen cooperation between the two countries in the hydrogen economy and bio-health sectors to prepare for the post-COVID-19 era. Chairman Choi Jung-woo, chairman of the Economic Cooperation Committee, said in his greeting, "It is time for Korea and Australia to adapt to the rapidly changing surrounding environment due to COVID-19 and seek long-term development plans," citing hydrogen energy and the bio-health industry as representative fields of economic cooperation in the post-COVID-19 era.