Following the previous interview with female executive Young Choi of Daewoo International, today we met with POSCO Research Institute (POSRI) deputy director Lee Yoon Hee. In the male-dominated steel industry, Lee is holding her own, leading her team with her trademark “soft charisma.” Shall we head on and have a listen to her story?

POSRI Deputy Director Lee Yoon Hee Talks POSCO

Could you please tell us what made you knock POSCO’s door, and about the work you’ve done at POSCO ever since?

While I was preparing for my post-grad school entry, a friend tipped me about a job opening at POSCO, which were exclusive for female students only. At the time I actually preferred to continue my studies rather than work for a company, but my professor and parents talked me into going for some good work and real-life experience. I was sold and applied for the job.

My first post when I joined the company in October 1990 was the secretary’s department located at Seoul. There, I worked for a year as then-president Park Tae-jun’s secretary. Next Fall I relocated to the management examination department located at Pohang. The new department was devoted to examining the local economy, market demands, and industry trends.

Afterwards I started afresh as a researcher when the Research Institute of Industrial Science and Technology (RIST) and the examination division of the Planning and Coordination department merged to form the new POSRI. Since 2001, I have worked on building marketing strategies and analyzing the steel industry and our competitors.

When was the most rewarding moment during your time at POSCO?

I’ve worked 3 years and 10 months at POSCO and 20 years as a researcher at POSRI. At POSCO, the year I worked as a secretary was the most memorable and rewarding. The Management Instructions Administration System had been newly introduced when I was assigned to the secretary’s department. I was in charge of recording the president’s and the vice-president’s instructions into the system, and relaying them to related departments.

The departments would correspond by submitting task results or countermeasures, and in turn the management would develop new strategies based on those reports. While experiencing the entire process, I was enthralled to have fulfilled my duties as a secretary by contributing to the work of my superiors.

On the other hand, the most personally rewarding work I’ve done as a researcher was the publication of steel industry research. Doing various unique research on steel commerce including the Korea-US steel tariff issue, competition rounds, and case studies on multiple commercial conflicts on several local industries, I could feel a genuine sense of duty in my work. I took pride in the idea that the research we were doing set us apart from other research centers, and that I was contributing to my country’s economic and social development through the steel industry.

A stalwart career amidst a male-dominated steel industry

When were difficult moments as a female worker, and how did you find the strength to march on?

Initially, it was difficult to withstand all the attention I received as someone who entered a predominantly male culture through a female-only recruitment. I was anxious to prove that gender doesn’t matter in the workplace, which drove me to pay more attention to detail and not make mistakes.

However, things changed when I moved into the research center: I began to receive credit for my work rather than how I behaved within the organization. Also, the fact that I was doing research in uncharted grounds proved to be a challenge in and of itself, which pushed me to work even harder.

Tell us about your personal efforts to become a truly admirable (female) leader.

First, I think the female advantage is her “Multiplayer DNA.”

Korean females are making a constant effort to fulfill their responsibilities not only in their careers but also in their homes. Because they are exposed to an environment which requires them to carry out various tasks in limited time, they develop the ability to tackle multiple tasks simultaneously while looking at the bigger picture.

This DNA contributes enormously to workplace performance. Taking myself as an example, I ask for the help of related departments without hesitation when needed. I also do not forget to make the necessary preparations for planned objectives, all while making bold decisions when need presses.

Furthermore, I have developed the ability to assume the role of the leader and allocate appropriate tasks to my teammates even when faced with complex objectives. Also, as a researcher, I had the responsibility to provide professionalism. I think perfection in professionalism is difficult, if not impossible, to attain solo.

There is a Korean proverb that says “Goodwill is born in the shed.” It means that a full shed comes before the sharing of its contents. To me, this saying underlines the importance of the continuous effort to fill the shed. That said, I try to meet with my researcher colleagues and share ideas in order to fill the shed. Such efforts contribute enormously in shaping my ideas in the right direction.

I also try to set some of my time aside for giving advice and sharing concerns with anyone who comes to me for help. Even when I’m pressed for time, I try my best to share my resources and provide solutions!

A Step towards the Future: The Story of Lee and POSCO

What are your five- and ten-year plans?

The question I’m asking myself these days is “what kind of leader shall I be?” With the specialty of the organization named research center, there is a certain limit to live as a position holder. I will try to become a ‘playing coach’ to secure the place as a position holder who does not lose the professionalism of a researcher.

First, I’m trying to finish my doctoral thesis by the following year. A diploma is mandatory not only internally but also externally for professional integrity. Next, I’d like to write a book on a topic of my field of expertise. I’m planning on a comprehensive summary on the steel industry-related dispute cases that were a part of my earlier publication, “The Commercial Disputes in Korean Industries.’

Furthermore, I’d like to write a series of reports on the history of the development of the global steel industry and the changing management strategies for the next generation of researchers to consult during their studies.

Could you give us any insight on the strengths of POSCO in the steel industry and the path it should take in the future?

POSCO assumes a leading role not only domestically but also in the global steel industry. It’s true that POSCO’s growth and profitability has slowed down somewhat recently, but its cost competitiveness and profit making ability remain superior to other steel manufacturers nonetheless. This indicates that POSCO’s market premium is to reckon with.

Another strength of POSCO is that it has many, many talented individuals working for the company. POSCO remains atop the “most coveted workplace” list. I expect the company’s new strategies to bear fruit over time as the promising talents of today become the leaders of tomorrow!

As a leader of the steel industry, POSCO must contribute to solving the industry’s two main issues spawned by structural problems: surplus supply and margin squeeze.

More than anything, it’s important to identify the ineffective policies and weaknesses that exist in the domestic steel industry. Joint efforts that will promote the mutual growth and development of the steel industry should be made, as well as strategies that will fortify the foundation for the growth of manufacture and demand.

Lastly, please give some advice for the females entering the workforce!

Firstly, try to maintain a bigger perspective. Look further and further. I recently read a book titled “A woman who lives 10 years into the past, a women who lives 10 years into the future.” The book compared women who stop growing at age thirty to women who start growing at age thirty, which prompted me to make specific plans for my life.

Also, try growing an interest in sports. There’s nothing like sports that leads to communication with males in a predominantly male organization. Sports is an activity that has a clear distinction between the winner and the loser, but it also gives us lessons on fairness and the need for sound strategy. Also, it will be helpful in carrying out tasks because it requires prompt decision-making from time to time.

Hope that Lee’s story will encourage you and many other business people to take a brave step in shaping their futures! Please look forward to reading our next post for the POSCO Women Leadership Series!

Reorganize POSCO’s Overseas Business to Focus on Steel Business

Pictured here: Chairman Kwon speaking to reporters on March 14

Do you think entering international markets is still valid today considering the delay of establishing an integrated steel plant in India, launching FINEX business in China, and beginning phase 2 construction in Indonesia?

It is true that some of the businesses are delayed. First of all, because India tends to have many decentralized policies, we have had to negotiate with many different bodies regarding business implementation and also had communication difficulties due to the cultural differences. However, the visit of President Geun-hye Park made a lot of improvement in terms of obtaining mineral rights and adjustment of land. Based on this, I think there will be acceleration in administrative implementation.

In China, they are planning to launch FINEX business. FINEX is the unique technology of POSCO and I think it is the core business that needs to be implemented continuously when considering the trend of future technology and ore processes. Therefore, we should continue to take the lead in this area.

In the case of Indonesia, regular operation has been delayed for about 2 months due to the unexpected accident, but it has stabilized again with the last month. It will be difficult to achieve surplus due to the loss of approximate 0.6 million tons of production caused by the accident, but we will do our best to make a gain next year.

Pictured here: Chairman Kwon discussing the future of POSCO at the media session on March 14

Synergy of POSCO’s Technology Buttressed by Marketing

POSCO has been emphasizing improvement of the competitiveness of steel which is its core business. Please elaborate on the improvements in more detail and also explain what the role of the Steel Solution Center will play in the future.

Pictured here: Chairman Kwon holding his first executive meeting on March 18

The core of POSCO is its steel business. Therefore, for POSCO to increase its competitiveness, it should strengthen its role as a leading steelmaker. To achieve this, I am planning to integrate marketing strategies to POSCO’s latest technology to create a synergy effect. The Steel Solution Center was also founded with this purpose in mind. Providing customers with integrated marketing and technology solutions will transform the company into a more customer-oriented company. By combining POSCO’s superior technology with the proper marketing strategies will allow us to fulfill customer demands by offering not only the products and techniques that customers want but a total solution.

Researchers must Understand the Field to Provide Customer-Oriented Solutions

According to the researchers at RIST, Chairman Kwon considers marketing side first when developing technology. What is your philosophy behind technology development and marketing? 

Pictured here: Chairman Kwon visiting Pohang Works to greet  employees right after his inauguration

RIST, as well as, POSCO’s subsidiary technology research centers, all carry out research for POSCO. Basically, I think any research center that belongs to a company should commercialize whatever technology they have to contribute to profit making. The series of EVI activities that POSCO does are an example of this. In order to achieve more practical and value-oriented research, researchers should find answers and be close to the actual sites. Furthermore, a system which allows engineers who are working on site to be able to create and apply their technology should be established. Moreover, communication with marketing staff and customers is very important. No matter how good a product is, if it is not aligned with customer needs, it won’t be sold. Therefore, POSCO is putting researchers in marketing departments to produce solutions that address customer needs.

Evaluation of Internal Competitiveness, Market Attractiveness, Entry Barriers and More

Are there specific plans for improving financial structure against the decline of steel demand and an oversupply caused by the global economic depression?

Pictured here: Chairman Kwon delivering his speech at the 46^th Shareholder’s Meeting on March 14

Presently, the biggest challenge for POSCO is improving financial structure. First of all, some businesses we think have little correlation will be listed on the stock exchange and restructured. Going forward we will try get our business direction aligned with shareholders in order to get more investments and improve debt ratios. We also have plans to re-examine existing businesses. We will consider internal competitiveness, market attractiveness, entry barriers and more to assess the businesses we should focus on and continue.

As the 8^th CEO of POSCO, how will you ensure equality for POSCO’s election & succession process?

Starting this year, a more fair system for CEO succession was performed. Outside directors were the core members of the Succession Council and only one internal director was involved. Chosen outside directors were not influenced by any external stakeholders. In addition, the candidate selection committee was composed of only outside directors to ensure fairness. I also went through a fairly rigorous interview process which made me feel like I was doing college admissions interviews again (laughs).

What are POSCO’s views on the changing domestic steel industry?

Until now, POSCO has been sort of the elder brother of the domestic steel industry. However competition has increased in the domestic market now. While there is no longer a monopoly, the increase in competition has helped Korean steel business become more advanced. Through healthy competition, the domestic steel industry has been able to grow. Cooperation and healthy domestic competition will help Korean companies become more globally competitive. Furthermore, cooperation and involvement in Steel Associations is integral to addressing environmental issues such as carbon emissions.

Korea is the fourth country to produce more than 3 worldsteel chairmen, behind Japan (9 times), the U.S. (8 times) and Germany (3 times). With this, Korea expects to strengthen its voice on major issues affecting the global steel industry as well as strengthen the status of the domestic steel industry.

CEO Chung Joon-Yang has been a member of the Executive Committee, the highest decision-making organization of worldsteel, since 2009, and was elected as Vice Chairman in 2012. Following his election as Chairman this year, CEO Chung Joon-Yang will hold the post for one year until the date of the next annual conference in October 2014.

The election of CEO Chung Joon-Yang as the leader of the global steel industry is testament to the latent strength underpinning POSCO’s success in achieving continuous growth despite the recent decline in the steel industry. Furthermore, the election reflects Korea’s ascendancy to becoming a steel technology export country from an importing country in less than half a century.

CEO Chung Joon-Yang was highly evaluated for his adroit understanding of steel technology having served as a steelworks head, his vast social network, and his activities as a member of the Executive Committee and as Vice Chairman, in which roles he has shown global leadership in many aspects including solving the current issues of the global steel industry and offering a sustainable vision of its future.

POSCO has been the subject of great interest throughout the global steel industry as a result of the company excelling its competitors by more than 5%p in terms of operating profit. Suffice it to say, World Steel Dynamics has selected POSCO as the ‘World’s Most Competitive Steelmaker’ for 4 straight years.

FINEX steelworks, which is a cutting edge steelmaking technology first to be successfully commercialized in 2007, has met with tremendous success in its export to China, strengthening POSCO’s position as a leading global steelmaker.

CEO Chung Joon-Yang, following his election to the post of worldsteel Chairman, commented, “I will focus on solving the various issues facing the global steel industry in my role as worldsteel Chairman through discussing and cooperating with all member companies. Furthermore, I will expand the association involvement of new rising steel companies from China, India, and South America for the balanced development of worldsteel as a whole.”

In his new role as worldsteel Chairman, CEO Chung Joon-Yang will give an opening speech at the China Automobile Steel Plate Seminar in Guangzhou, China, in October which is being hosted jointly with CISA. What’s more, he will carry out a range of activities to solve the steel industry’s current issues including △over-supply △raw material oligopoly △market development △competition with alternative materials.

At this year’s conference, Alexey Mordashov, Russia’s Severstal Chairman and former worldsteel Chairman, and Wolfgang Eder, Austria’s voestalpine Chairman, were elected as Vice Chairmen, and six companies including Italy’s ILVA S.P.A and 2 associations joined as new members.

The conference was attended by 300 representatives of the world steel industry with the item first on the agenda being an executive committee meeting and board of directors meeting held on the 6^th. On the 7^th and 8^th, when the annual conference was held, presentations were made including vis-à-vis long-term sustainability and policy trends regarding the environment and climate changes. The presentations were followed by on-site plant tours in Brazil including that of ArcelorMittal on the 9^th.

However, POSCO was somewhat different. The Korean steel giant demonstrated a true strength in this doomed age, through achieving a higher operating profit than ArcelorMittal, Baoshan Steel and Nippon Steel Corporation by 2 to 6 percent in the first three quarters of 2012. It was possible because POSCO had secured a lucrative profitability by focusing on developing distinctive product lines and cost reduction. In fact, POSCO’s high added value products, such as ‘World First’ and ‘World Best’ lines, have shown increases in sales from the 2Q 2012. The exports of steel sheets for automobiles and the sales of thick plates for energy-use have also surged higher than the previous year.

POSCO’s financial position also reflects its fine fitness. In the 3Q 2012, its debt ratio narrowed down to 35.9 percent, 4.3 percent lower figure year-on-year, and a ratio of net worth was increased by 2.3 percent. POSCO’s credit rating excels other steel makers on the basis of such figures. POSCO is rated the highest, amongst its steelmaker competitors, by Fitch IBCA, Moody’s and the Standard & Poor’s, the world’s three major credit rating agencies. It indicates, amidst the global economic downturn, POSCO has achieved stable profits and a sound financial structure as well as presenting an optimistic growth potential.

In June 2012, the World Steel Dynamics (WSD), a leading steel information institute, has awarded POSCO as ‘World’s Most Competitive Steelmaker’ for 3 consecutive years. The World Economic Forum in Davos ranked POSCO at 30th in ‘the Global 100 Most Sustainable Corporations’ in January 2012. These facts and figures reflect POSCO’s globally recognized superior innovation in technologies, production scale, profitability and price power. Once again, POSCO proved itself to be the No. 1 steelmaker of the world.

For POSCO, 2013 looks even brighter. According to the Korea Iron and Steel Association (KISA) and POSCO Research Institute (POSRI), Korean steel industry is anticipated to enjoy a much optimistic year. From the second half of 2013, an expansion in the investments for China’s infrastructure with the nation’s new government and a recovery of the U.S.’s economy is forecasted to take place. They are highly positive factors for POSCO’s another triumphant business year. Kyung-joong Kim, a steel industry analyst of Eugene Investment and Securities, commented “POSCO is increasing its emphasis on providing highly profitable and fine quality products such as steel sheets for car manufactures and energy business from the current 34 percent.” “It seems the firm will be benefiting from a higher profitability than its competitors in 2013,” he added.