National Pension Service Supports Jang In-hwa as Next POSCO Chairman Candidate

Support Policy for Appointment Proposal at the Trustee Committee on the 14th

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

The National Pension Service (NPS) has decided to support the appointment of Jang In-hwa as chairman candidate of the POSCO Group. With the largest shareholder NPS casting a favorable vote ahead of the shareholders' meeting to decide the next chairman, Jang's inauguration is expected to proceed smoothly.

According to industry sources on the 15th, the NPS Stewardship Responsibility Committee reviewed the voting direction on the agenda for the POSCO Holdings shareholders' meeting held the previous day (14th) and decided to support the appointment of Jang In-hwa as chairman of the POSCO Group. The committee also expressed support for the appointment of internal directors Jeong Ki-seop, Kim Jun-hyung, and Kim Ki-soo, outside directors Yoo Young-sook and Kwon Tae-gyun, and outside director (Audit Committee member) Park Sung-wook. However, it opposed the approval of the director remuneration limit, citing that the amount of remuneration was excessive compared to business performance.

NPS Chairman Kim Tae-hyun recently put a brake on the reappointment of some POSCO Holdings outside directors involved in lavish business trips. Last month, through the media, he pointed out, "It is questionable how (the related candidates) contribute to enhancing corporate shareholder value," signaling a red light on their reappointment. However, the Stewardship Committee is known to have made this decision by referring to the favorable opinions of proxy advisory firms. Global proxy advisory firms Glass Lewis and ISS have recommended shareholders to support all POSCO agenda items.

NPS is the largest shareholder of POSCO Holdings, holding a 6.38% stake. With this decision, NPS plans to cast a favorable vote on the appointment of Chairman Jang at the POSCO Holdings shareholders' meeting scheduled for the 21st. Thanks to the Stewardship Committee's decision, it is expected that there will be no management vacuum incidents like those at KT. POSCO is known as a representative widely dispersed ownership company, with NPS being the only major shareholder holding more than 5% of shares. Therefore, it is widely agreed that NPS's decision significantly influences the voting intentions of other shareholders.

Meanwhile, current POSCO Group Chairman Choi Jung-woo will hold a private farewell ceremony at the POSCO Center in Seoul on the 18th. Chairman Choi will become the first chairman in POSCO's history to complete a full reappointment term. He is expected to continue his activities as an advisor to POSCO.