[Asia Economy Reporters Oh Hyung-gil and Jung Dong-hoon] Choi Jung-woo, Chairman of POSCO, stated on the 28th that the transition to a holding company system will accelerate balanced growth between steel and new businesses and spread the perception of POSCO as an eco-friendly materials company.
At the extraordinary general meeting of shareholders held at the POSCO Center in Gangnam-gu, Seoul, Chairman Choi said in his greeting, "By transitioning to a holding company system to accelerate balanced growth between steel and new businesses, and as the perception of POSCO as an eco-friendly materials company spreads, efforts as a growth stock will be properly reflected in corporate value."
Chairman Choi pointed out, "The future management environment ahead is predicting revolutionary changes completely different from before. The global low-carbon transition is fundamentally shaking the competitiveness of existing industries including steel, and the acceleration of technological innovation in eco-friendly materials, new mobility, digital, and bio fields is providing new future growth business opportunities while posing a crisis to companies that fail to adapt to these changes."
He added, "We have deeply discussed the mid- to long-term business strategies to actively respond to revolutionary environmental changes and sustain company growth, as well as the management system to implement these strategies several times. Innovation in the management system is urgently needed to create greater corporate value and develop into a global business leader leading humanity’s sustainable future."
POSCO has currently established a system producing 114,000 tons annually of secondary battery materials such as cathode and anode materials. Lithium and nickel have completed R&D and pilot production and are entering the pre-commercialization stage, with business results expected to become visible. In the hydrogen business, POSCO is strengthening its business capabilities through joint project reviews with overseas companies and R&D cooperation with specialized institutions.
Chairman Choi evaluated, "Despite progress in new growth business areas and record-high operating profits last year, POSCO’s market capitalization is still less than half of its peak in 2007, reflecting undervaluation. This is because the dominant perception is that POSCO is a low-growth steel stock, and the potential of new growth businesses is hardly recognized."
At the extraordinary general meeting of shareholders, Chairman Choi also responded "No" to a shareholder’s question asking if the holding company system was a means to evade responsibility under the Serious Accidents Punishment Act.
He stated, "The holding company system is a measure to promote balanced new growth and enhance shareholder value. Being a holding company does not exempt us from the Serious Accidents Punishment Act."
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