Published : 2013-09-06 21:15
Updated : 2013-09-06 21:15
POSCO, the nation’s top steelmaker, dismissed a recent news report that POSCO chairman Chung Joon-yang recently notified Cheong Wa Dae of his intention to resign.
According to the report, a high-ranking official from Cheong Wa Dae called on Chung to step down last month. The reason for the government’s request was not reported.
A POSCO official said on Friday that the news report was groundless and confirmed that the chairman had no imminent plans to step down. Chung’s second term ends in March 2015.
Rumors of Chung’s resignation have flared up again since the National Tax Service early this month launched an investigation into POSCO’s three main operation sites in Seoul; Pohang, North Gyeongsang Province; and Gwangyang, South Jeolla Province.
Despite its privatization in 1998, the steelmaker’s leadership has been affected by political circles and is generally replaced with the launch of every new administration. Chung was an exception, having served in the post since 2009.
Experts on the governance of Korean conglomerates have criticized continued political influence on the steelmaker’s top management, saying that decisions on the leadership of POSCO, whose foreign shareholding reached 52 percent as of June, should be led by the corporate board and shareholders, not by the government.
The largest shareholder of POSCO is the National Pension Fund, which holds 6.14 percent of POSCO’s shares.