[Initial Perspective] Unable to Understand the Silence of the National Pension Service

The selection process for the next chairman candidate of POSCO Group, ranked fifth in the business world, is underway amid heated controversy. This is a crucial position, representing not only a symbolic figurehead of the domestic steel industry but also responsible for nearly 30,000 employees across the group’s subsidiaries and tens of thousands of partner companies. Reflecting its importance, many are closely watching this candidate selection.

As the selection process progresses, the National Pension Service (NPS), the largest shareholder, is receiving attention comparable to that of POSCO Group itself. Since Kim Tae-hyun, Chairman of the NPS, personally raised concerns about "fairness and transparency" in the candidate selection process on the 28th of last month, various controversies have emerged, increasing public interest. However, the NPS has maintained silence since that day.

The POSCO Holdings CEO Candidate Recommendation Committee (CRC) will decide a shortlist of about 10 candidates on the 24th, reflecting the evaluation results from an external advisory panel. This means the candidate selection is past the halfway point.

The main reason for the spotlight on the NPS’s silence is that the CRC, composed of existing outside directors whose fairness was questioned by Chairman Kim, is still proceeding with the process. In particular, all seven outside directors on the CRC, as well as current Chairman Choi Jeong-woo and candidates included in the ‘longlist,’ are under police investigation over allegations of a ‘luxurious overseas board trip.’

Despite an incident that could be judged as damaging the fairness emphasized by the NPS, the NPS has not issued any separate statement. Speculation abounds about what differentiates this from last year’s KT chairman selection process, where the NPS actively voiced official opposition to the reappointment of former CEO Koo Hyun-mo.

Controversy Over POSCO’s Next Chairman Selection Process... No Response Despite Fairness-Damaging Incident

Another point that makes the NPS’s silence difficult to understand is the lack of evaluation or response regarding the ‘closed-door’ advisory panel of the CRC. The advisory panel plans to conduct direct evaluations of the 18 candidates on the longlist and holds a key role in candidate selection.

The CRC does not disclose information about the advisory panel to ensure independent review. Some criticize this as a ‘blind evaluation.’ Previously, Chairman Kim emphasized fairness and transparency, stating that the chairman selection process should be conducted publicly, which does not align well with the advisory panel’s closed operation.

Another notable point is the reason behind the NPS’s silence. The news that current Chairman Choi Jeong-woo was excluded from the candidate pool came only after the CRC’s fourth meeting on January 3rd. POSCO has not disclosed whether Chairman Choi applied as a candidate, but since this was announced just six days after Chairman Kim’s concerns, it is difficult to conclude that there was no influence.

The continued silence of the NPS following the failure of Chairman Choi’s reappointment also allows for the interpretation that the NPS may have achieved its original objective.

The CRC will finalize the final list by the end of this month and select one final candidate next month. Even if a final candidate emerges after numerous controversies and twists, the NPS’s silence will only deepen greater uncertainty.