POSCO Group Faces Internal Confusion and Investigation: What’s Next?

POSCO Group Faces Internal Confusion Amidst Investigation News

POSCO Group, one of South Korea’s largest conglomerates, finds itself in a state of internal confusion following the sudden news of an ongoing investigation. As the process of selecting the next chairman is underway, all attention is now focused on this investigation. Let’s delve into the details.

Choi Jeong-woo, Chairman of POSCO Group, Contemplates Government Relations

Choi Jeong-woo, the current chairman of POSCO Group, has never been mentioned in the government’s economic advisory council. He has also been absent from the annual economic greetings event for two consecutive years. This is in stark contrast to his active participation in various events during the previous administration. Furthermore, last month, the National Pension Service, the largest shareholder of the group, expressed a negative stance towards Choi’s reappointment, essentially eliminating the possibility of his continued tenure. These circumstances have sparked speculations about the strained relationship between Choi Jeong-woo and the current government.

POSCO Group Faces Internal Confusion Amidst Ongoing Investigation

The recent series of events has left the internal atmosphere of POSCO Group in a state of bewilderment. It has been confirmed that during a board meeting held in Canada last August, the group emphasized its long-term investment in a local iron ore mine. However, due to the ongoing investigation, specific details cannot be disclosed. While some argue that overseas board meetings are a common practice, others view it as a problem stemming from the group’s governance structure.

Controversy Surrounding Lavish Overseas Business Trips

The controversy surrounding lavish overseas business trips was already raised during last year’s parliamentary audit. With the investigation currently underway, various interpretations have emerged regarding the timing of these trips. The seven external directors who recommended candidates for the next chairman position may face disruptions in their future activities.

POSCO Group Struggles with Internal Confusion and External Constraints

With the investigation into the lavish overseas board meeting, which cost over 700 million won in just seven days, POSCO Group is grappling with internal confusion and external constraints. The outcome of this investigation will undoubtedly have significant implications for the group’s future.

Conclusion

The ongoing investigation has caused internal confusion within POSCO Group, one of South Korea’s leading conglomerates. Choi Jeong-woo, the current chairman, faces strained relations with the government, while the controversy surrounding lavish overseas business trips adds to the group’s challenges. As the investigation progresses, the implications for the group’s future remain uncertain.