Revitalizing the Local Economy

POSCO produced over 8.5 million tons of auto sheets last year and is expecting to increase production to 10 million tons by 2017 with the expansion of its 7CGL production line in Gwangyang and Thailand, solidifying its position as the second largest steelmaker in the world.

For the construction of the Gwangyang 7CGL, POSCO plans to perform all work in-house, using its own engineering efforts without hiring large-scale engineering companies. By doing so, POSCO expects to reduce huge investment costs by applying POSCO’s own unique technologies, including annealing furnace compactification, internal oxidation technology and more. Furthermore, under difficult steelmaking situation internally and externally, construction of the Gwangyang 7CGL is expected to contribute to the revitalization of the local economy by creating more than 160,000 jobs per year and placing orders to small and medium-sized equipment suppliers and construction companies based in Gwangyang and Jeolladamdo.

Over 130 interested parties, including Young-hoon Lee, Head of Finance and Investment Division of POSCO, Tong-il An, General Superintendent of Gwangyang Works, the governor of Jeollanamdo and the mayor of Gwangyang City, attended the ground breaking ceremony.

POSCO held its board meeting on February 24^th to announce the nominations for outside and in-house directors. On this day, Ilsup Kim, President of Seoul School of Integrated Sciences & Technologies (aSSIST), Wooyoung Sun, Executive Partner at law firm Seah, and Donghyun Ahn, Professor of Economics at Seoul National University, were named candidates for outside directors. In addition, Jinil Kim, President of POSCO CHEMTECH, Younghoon Lee, Senior Vice President of POSCO Engineering & Construction, and Executive Vice President Dongjoon Yoon, were named candidates for in-house directors.

Outside director candidate, Ilsup Kim of aSSIST, has held previous roles including Vice President of Samil PwC, Vice Chancellor of Ewha Women’s University’s School of Business, and Chairman of Deloitte Korea. Executive Partner, Wooyoung Sun served at various posts including Chief Prosecutor at Uijeongbu and Cheongju district public prosecutor’s office as well as at Seoul Eastern District Prosecutor’s Office. Lastly, Professor Donghyun Ahn served as Assistant Professor at Korea University’s College of Business Administration, Associate Professor at University of North Carolina, and Financial Strategy officer at RBS.

In-house director nominee, POSCO CHEMTECH President Jinil Kim, joined POSCO in 1975 and has worked as General Superintendent at Pohang Works as well as the Head of Carbon Steel Business Division. From 2011, he transferred to POSCO CHEMTECH and is currently the CEO. Senior Vice President Younghoon Lee joined POSCO in 1985 and has served in many posts including Manager of the Finance Department and Head of the Corporate Strategy Department. He currently is the director of Business Planning at POSCO Engineering & Construction. Finally, Executive Vice President, Dongjoon Yoon joined POSCO in 1983 and has held various positions including Manager of the Business Innovation Department, Head of Global HR, and Director of Business Planning at POSCO Engineering & Construction. He returned to POSCO last year and is currently the Director for Business Strategy.

For the first time since the founding of POSCO, all nominated in-house directors have prior experience working at invested companies of POSCO. As such, it is anticipated that the newly elected board of directors will have more understanding and consideration of each other’s position. Candidate Ohjoon Kwon CEO has prior experience working at the Research Institute of Industrial Science & Technology of POSCO and Senior Executive Vice President  Inhwan Chang recently returned from his role as CEO of POSCO P&S.

Following a qualification screening and process of eligibility by the Nomination Committee and current Board of Directors, these individuals were nominated as likely candidates to be appointed. They will be officially appointed this coming March 14^th at the general shareholders’ meeting.