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POSCO to reelect Chung for second term

POSCO chief executive Chung Joon-yang is likely to remain at the helm of the Korean steel giant as its board of directors agreed Tuesday to reelect him for another three-year term.

Chung, 64, has been orchestrating the company’s operations since February 2009. With the first term expiring at the end of next month, he will seek approval from stakeholders at a meeting in March, POSCO officials said.

Chung’s second term was widely expected by industry observers who credit him with masterminding the steelmaker’s robust overseas expansion and boosting its self-sufficiency in raw materials in the face of soaring mineral prices.
Chung Joon-yang
Chung Joon-yang

In 2009, with emerging signs of the economic recovery, POSCO made big bets on future sources of income ― acquisitions, new markets and technologies.

The world’s fourth-largest steel mill took over Asia Stainless Corp. of Vietnam and Taihan ST Corp. here in 2010. It also acquired shares in other steelmakers and mining projects overseas, while building new plants in China, Indonesia, Turkey and elsewhere.

In a bid to become an all-round resources explorer, POSCO bought a controlling stake in Daewoo International Corp. in 2010. The local trader is engaged in six overseas metal development programs and eight oil and gas projects.

Sales hit a record high of 32.6 trillion won ($28.4 billion) last year. The figure is expected to reach 39.2 trillion won, up more than 20 percent on-year, but operating profit will slip nearly 17 percent to 4.2 trillion won, company officials said.

POSCO shares edged up 2.20 percent to 394,000 won on Tuesday on reports that it may form a consortium with local shipbuilders to bid for GTT, a French engineering firm and one of the steelmaker’s clients, for 1 billion euro ($1.27 billion).

By Shin Hyon-hee (