Concerns over Jang In-hwa, POSCO Says "Battery Investment Continues Despite Leadership Change"

Relieving Concerns About New Business Through Shareholder Letter on the 13th

Jang In-hwa, POSCO Group Chairman Candidate. Photo by POSCO Group

POSCO Group stated in a shareholder letter that "despite the leadership change within the group, it will continue investing in the secondary battery materials business." This appears to be an effort to dispel shareholders' concerns about potential reductions in battery investments ahead of the inauguration of the new chairman, Jang In-hwa, known as a steel expert.

According to industry sources on the 14th, POSCO Holdings sent this shareholder letter under the name of President Jeong Ki-seop ahead of the regular shareholders' meeting scheduled for the 21st of this month. Typically, shareholder letters are sent under the chairman's name, but this one was issued under President Jeong's name in anticipation of the new chairman's inauguration.

In the letter, President Jeong stated, "POSCO Group promises to make its best efforts to enhance the group's future growth and corporate value without wavering despite the leadership change," and added, "We will continue investing in the secondary battery materials business to secure a competitive edge ahead of our rivals in future competitiveness."

He further emphasized, "We will expand the world-class operational capabilities secured through the steel business to new business areas within the group, such as the secondary battery materials business, accelerating the early stabilization and performance creation of newly established domestic and overseas subsidiaries."

It is known that Chairman candidate Jang expressed his intention to lead the battery business as a future growth engine of the group through the transition committee and other channels. Kim Jun-hyung, Vice President in charge of Eco-friendly Future Materials at POSCO Holdings, also conveyed, "(Chairman candidate Jang) places great emphasis on advancing the battery materials business as a future growth industry."

Meanwhile, the National Pension Service's Stewardship Committee (Soochaekwi) will convene on the same day. The committee is expected to discuss agenda items related to the shareholders' meeting, including the appointment of Jang In-hwa as chairman of POSCO Holdings.