Only Shareholders Visible, Not the Region... Lee Kang-deok, Mayor of Pohang, "POSCO Holding Company Transition, No News on Win-Win Promise"

Holding Companies and Future Technology Research Institutes Must Be Located in Pohang

Mayor Lee Gang-deok of Pohang is expressing his position on the transition of POSCO to a holding company at the city hall on the 25th. [Image source=Pohang City]

[Asia Economy Yeongnam Reporting Headquarters, Reporter Yeo Jong-gu] Mayor Lee Gang-deok of Pohang is strongly concerned about the plan for the holding company and the Future Technology Research Institute to be located in Seoul ahead of POSCO's transition to a holding company.

Mayor Lee said, "POSCO developed through Pohang, and the citizens have endured much pain and hardship, but today's transition to a holding company was made without any communication or measures for coexistence and cooperation with the region."

He also expressed dismay, saying, "With the POSCO Center and research institutions relocating to Seoul, the outflow of personnel has accelerated, and if the holding company is also established in Seoul, Pohang will inevitably be marginalized."

On December 10 last year, the board of directors decided on a physical division for the transition to a holding company, and an extraordinary general meeting for final approval is scheduled for the 28th.

During the transition to a holding company, POSCO has presented measures for shareholders such as 'treasury stock cancellation' and 'unlisted articles of incorporation for the steel business subsidiary,' but it is known that no solutions have been offered for coexistence and cooperation with the local community.

Mayor Lee Gang-deok of Pohang urged, "Please establish the POSCO Group holding company and the Future Technology Research Institute in Pohang to fulfill POSCO's promise of coexistence with the citizens." He also said, "We expect POSCO to take infinite responsibility and a spirit of coexistence and cooperation in Pohang's history."

The Pohang City Council also adopted a 'Resolution urging coexistence with the local community regarding the POSCO Group holding company transition' on the 24th, calling for the establishment of the holding company in Pohang and the preparation of local coexistence measures.