President Kwon, “We will work to earn the pride of the Korean people and to continue our contributions to the development of Korea’s economy”

President Ohjoon Kwon (former chief technical officer) was selected as the candidate to be POSCO’s new CEO.

POSCO held a board meeting on the 16th and unanimously carried a resolution to nominate President Ohjoon Kwon as the candidate for CEO, as inside director.

When POSCO CEO Joonyang Chung tendered his resignation on November 15th last year, POSCO held a special board meeting to establish a Succession Council to select the next CEO candidate, and has since been carrying out an in-depth search of candidates for the past 50 days. The Succession Council, comprising three outside directors including Chair Youngsun Lee as well as an inside director, carried out a transparent and fair procedure using multiple search firms to review a broad range of candidates covering both internal and external POSCO Group personnel . Five candidates were selected in the process, and all were suggested to the board of directors on the 15th.

To finalize candidates selected by the Succession Council, and examine their qualifications, POSCO’s board of directors resolved to form a CEO nomination committee made up of outside directors only, on the same day. For independent and strict candidate selection, the CEO nomination committee carried document screening of candidates for two days, on the 15th and 16th, and two interviews, including an in-depth interview. After examining the final qualifications for the eight capabilities POSCO requires of its CEO, including vision, outcome production competence, steel and related industry expertise and leadership, President Ohjoon Kwon was finally chosen as the CEO candidate.

“The entire steel industry, including POSCO, is facing an environment wherein margins are squeezed due to steel oversupply and intensification of oligopoly in the raw materials market,” said Youngsun Lee, POSCO board of directors Chair. “We need someone to reinforce the POSCO Group’s financial stability by promoting a strong reorganization of the group’s business structure, and to ultimately enhance the POSCO Group value in the long run.”

He added, “We selected President Kwon as CEO candidate because we consider him to be the right person to take the initiative in reengineering POSCO Group by enhancing original steel competitiveness through technology and marketing convergence, and fostering long-term company mega-growth opportunities through development of unique new growth technologies.”

Born in 1950, President Kwon graduated from Seoul National University, where he specialized in Metallurgical Engineering, and earned his master’s degree in the same department at the University of Windsor and a doctorate at the University of Pittsburgh. He joined the Research Institute of Industrial Science and Technology in 1986 and served as assistant director of the research institute, director of the research institute, and director of RIST, and is currently POSCO’s chief technical officer.

Kwon secured exclusive technological competitiveness by leading development of the company’s “World Best, World First” technologies as a technical steel expert serving as research institute and RIST director, while also playing a key role in securing and maintaining a competitive advantage in technology in the general materials field. Another advantage is his network of global steel companies and global competence through his experience serving as European office head.

Kwon will officially take office as CEO on March 14th, after the regular shareholders meeting and board meeting.

CEO Candidate Kwon’s Thoughts

I would like to thank the directors who have selected me as the candidate to be POSCO’s new CEO despite my flaws. If I am selected as the next CEO after the general meeting of shareholders, I will rally the strengths of all POSCO employees to lead our company to the world’s best competitiveness. I will ensure we do our best to solidify POSCO’s status as a company that makes people proud and contributes thoroughly to the development of the national economy.

What is ‘World’s Most Competitive Steelmaker’ Award?

From 2002, WSD has been analyzing global steel markets and rating the world’s leading steel manufacturers on 23 categories: production volume, profitability, technology renovation, pricing power, cost reduction, financial solidity and securing raw materials.

POSCO Receives High Points with Labor Mastery and Technology Renovation

The Steel Success Strategies XXVIII, one of the biggest steel industry conferences in the world, was held by WSD at Sheraton New York Times Square Hotel between June 18th and 19th. As a part of the conference, WSD announces which company is leading the industry by excelling all of its competitors in terms of various business aspects.

For this time, POSCO received evenly high marks in all areas, recording 7.73 out of 10 points. POSCO was highly evaluated for its labor mastery, ‘FINEX’ and energy plate manufacturing technologies. Expansion of high value added products and exploration of newly emerging markets also received positive assessment.

CEO Chung Joon-yang Delivers Special Speech

Chung Joon-yang, POSCO’s chief executive officer and chairman, was also invited as ‘Highlight Speaker’ on the second day of the conference. CEO Chung introduced POSCO’s growth dynamics and its history of continuous developments and innovations.

The Chairman talked about how POSCO has been driving a consistent growth over the past four years via leading innovative business activities and concreting the global management system. He also talked about POSCO’s efforts to amplify the company’s global competitiveness by creating high value added products. Chairman Chung stressed that it is vital for POSCO’s ‘World Best’ spirit to overcome the sluggish global economy.

Growing Together with ‘SPICEE’

Chairman Chung also explained the importance of building a sound corporate eco-system by adopting a better sense of partnership with their employees, stakeholders and the surrounding environment. He emphasized POSCO’s unique concept of ‘SPICEE,’ an acronym for ‘Society,’ ‘Partner,’ ‘Investor,’ ‘Customer,’ ‘Employee’ and ‘Environment,’ to highlight the significance of mutual cooperation and development. POSCO believes a positive synergy between these factors will enhance POSCO to become a firm of endearment. He said, “We must strive to transform the organization from a great company to the Firm of Endearment by working closely with every SPICEE element.”

‘Hello, POSCO’ would like to thank all of you for the award we received from WSD. POSCO will continue sailing towards our goal to become a more loved and respected steelmaker by everyone. So, stay tuned with us at ‘Hello, POSCO’ and we will keep posting great stories of the journey.

POSCO’s cutting edge technology built world’s biggest Furnace

Since the initial construction in April 1987, Gwangyang Steelworks’ Furnace 1 extended its size from 3,800㎥ to 3,950㎥ when the second renovation was completed. After its third enhancement made in this year, Furnace 1’s volume now reaches 6,000㎥, bigger than the previously world’s largest furnace (5,800㎥) built by Shagang Group in China. Without a doubt, Furnace 1 at Gwangyang Steelworks is now the greatest furnace every built.

It is indeed a remarkable accomplishment not only for POSCO but also for Korea. POSCO started its steelmaking operation back in 1968 under an unimaginably harsh local condition. In the 1960s, there was no raw material, capital and technology to utilize in Korea. POSCO was able to stand on its own feet by receiving loans and technologies from foreign companies in line with the government’s ambitious plan to boost the economy. After 20 years, POSCO constructed Furnace 1 at Gwangyang Steelworks with the company’s own technologies. Now, the very same furnace has been reborn as the world’s biggest furnace. Isn’t it just amazing?

Cost-saving and Energy-friendly technologies

When a furnace is built, the fire inside is not put off for a single time over about 15 years. Once the lifespan is completed, a repair work is required to completely renew the furnace. The technologies involved in the repair operation are countless as they determine life expectancy, volume and productivity of furnaces.

POSCO used a new cooling system to minimize damages on the furnace during the repair. POSTECH and RIST worked with POSCO to develop the new technology, which is anticipated to extend the lifespan of Furnace 1. Also, another cutting edge technology has been embedded to Furnace 1 by inputting more reducing gas into the furnace. It will boost the amount of molten metal up to 2.50t/d.㎥. Because it is also an efficient technology, POSCO is expecting to save about KRW 1,000 billion a year for molten iron manufacturing costs.

For the first time in Korea, a dry-based dust collector was used for Furnace 1 as well, enabling us to recover more energy by using high-pressure gas exhaled from the furnace. It will also save us KRW 1.3 billion a year. A non-steam quenched blast equipment was also casted to cool down slags with less electricity, water, unpleasant smells and dusts.

During the ceremony, POSCO’s Chief Executive Officer and Chairman Chung Joon-yang delivered a speech saying, “Gwangyang Steelworks’ Furnace 1 is the mixture of our finest technologies over shaft operation, material quality control and facility management. It has become the symbol of POSCO’s ‘World Best’ and World First’ top quality molten metal manufacturing process.” Chairman Chung also added, “I would like to thank all of you for your continuous supports and loves towards POSCO. Moving forward, we will consistently cooperate with our partners for mutual development to overcome the sluggish economy.”

“The world’s largest furnace pouring out world’s best molten metals,” doesn’t it sound so exciting? POSCO’s latest accomplishment with Furnace 1 at Gwangyang Steelworks was only possible with POSCO employees’ sweat and effort, and also the supports from all of you. POSCO will not be satisfied with the success and continue engaging with more World Best and World First operations to become the more loveable and respectable cooperation.