National Pension Service Approves POSCO Physical Division Plan (Update)

[Asia Economy Reporter Park So-yeon] The National Pension Service's Stewardship Responsibility Committee (Stewardship Committee) decided on the 24th to support POSCO's physical division plan. As of the end of the third quarter last year, the National Pension Service is the largest shareholder, holding a 9.75% stake in POSCO.

According to the financial investment industry, the National Pension Service Stewardship Committee held its first meeting on the day and reviewed the direction of exercising voting rights on the agenda of POSCO's extraordinary general meeting of shareholders.

The committee members judged that POSCO is making efforts to enhance shareholder value, such as pursuing a plan to keep subsidiaries unlisted after converting to a holding company, and thus leaned towards supporting the plan.

POSCO plans to hold an extraordinary general meeting on the 28th to present the division plan including the agenda for conversion to a holding company. To pass the meeting, approval must be obtained from at least one-third of the total issued shares and two-thirds of the attending shareholders.

Meanwhile, POSCO announced a governance improvement plan centered on conversion to a holding company last month. In response to concerns that the controversial physical division and subsequent listing of subsidiaries would harm shareholder value, POSCO announced that not only the steel business company (POSCO) separated out but also other new business subsidiaries will not be listed. Along with this, it also presented shareholder-friendly policies such as treasury stock cancellation and dividend expansion.