POSCO Group has conducted its first regular executive appointment since the inauguration of Chairman Jang In-hwa. It replaced the chief executive officers (CEOs) of seven affiliates including POSCO and reduced the executive headcount by 15%.
As operational challenges arose from poor performance in the steel (POSCO) and battery materials (POSCO Future M) sectors coupled with a series of fire incidents, speculation has emerged that the company is aiming to overcome the crisis through significant personnel reshuffles.
In the regular executive appointment conducted on the 23rd, POSCO Group reduced its executive headcount by 15%. Executives born in 1963 or earlier were encouraged to step down from active management. The number of individuals promoted was 62, a decrease of more than 30% from the previous year’s 92. POSCO Group explained that it is focusing on a decisive generational shift, a zero-tolerance principle for safety incidents, expanded internal promotions within its operating companies, and increased appointments of qualified female executives with expertise and business capabilities.
Hee-geun Lee, head of the POSCO Equipment Stabilization Task Force (Vice President), was appointed as the new representative of the steel subsidiary, POSCO. Lee has previously served as the deputy head for steel at the Pohang mill, head of the safety and environmental division, and president of POSCO M-Tech. The task force that Lee previously led was established under Chairman Jang’s direction following repeated fire incidents at the Pohang mill's 3-Pyung-Next facility. Lee will be responsible for restructuring unprofitable businesses and enhancing operational competitiveness. POSCO Group stated that Lee is the right person to promote stabilization in operations, safety, and equipment fortification.
POSCO Engineering & Construction promoted Hee-min Jung, head of the architecture division (Vice President), to representative. Gi-cheon Eom, head of the energy materials division (Vice President), was appointed as representative of POSCO Future M, and Min-seok Shim, head of digital innovation at POSCO (Managing Director), was appointed as representative of POSCO DX.
Three individuals born in the 1970s were appointed as representatives of operating companies. Seung-dae Park will lead POSCO Humans, Gae-hee Oh will lead POSCO HY Clean Metal, and Boo-hyun Park will lead POSCO IH. Including Jae-woo Lee, representative of POSCO Silicon Solutions, the total number of representatives from the 1970s has increased to four.
POSCO Group appointed five women executives in this round of regular appointments. Among the 45 newly appointed executives, the percentage of women is 11%.
The newly appointed women executives are Young-joo Jin, head of the environmental and energy planning division at POSCO; Ji-eun Lee, head of the civil engineering marketing division at POSCO; Mi-sun Ahn, head of purchasing and contracts at POSCO Engineering & Construction; Sung-eun Park, head of human resources and culture at POSCO; and Mi-jeong Bang, full-time auditor at POSCO M-Tech. The first female representative of an operating company, Lee Yu-gyeong, head of management support at POSCO Holdings, has been promoted to the first female vice president of POSCO Group and will transition to head of purchasing and investment.
To enhance the speed of responses to uncertainties in the management environment, POSCO Group has carried out an organizational slim down of its major operating companies.
POSCO Holdings has simplified decision-making processes by adopting a headquarters system. The existing comprehensive system (general manager-team-responsible) has been restructured into a headquarters system (headquarters-division), transitioning to a system of six headquarters (Future Strategy Headquarters, Business Synergy Headquarters, Finance and Investor Relations Headquarters, Corporate Ethics Headquarters, Communication Headquarters, Management Support Headquarters) and one institute (Future Technology Research Institute).
Functions related to future growth investments that were previously scattered have been consolidated into the Future Strategy Headquarters, while business management functions have been centralized in the Business Synergy Headquarters. Joo-tae Lee, head of the management strategy team, will lead the Future Strategy Headquarters, and Seong-rae Cheon, head of the carbon neutrality team, will lead the Business Synergy Headquarters.
To systematically implement carbon neutrality, a Task Force for Nuclear Cooperation has been established to oversee self-generation from nuclear power and hydrogen production partnerships, alongside a project team to accelerate investments in India.
POSCO Group stated that it will "reorganize the strategy and investment functions of the holding company to strengthen the future growth engines of the group."
To stabilize steel operations, POSCO has established the Blast Furnace Stabilization Task Force following the establishment of the Equipment Stabilization Task Force last month. It will transfer health, safety, and environmental functions directly under the president to strengthen the safety management organization.
POSCO International has consolidated its trading division from three headquarters (steel, eco-friendly, food and bio) to two (steel, material bio). In the energy sector, the Energy Business Development Headquarters and the Energy Infrastructure Headquarters will merge into the Energy Business Development Headquarters to enhance synergies within the energy value chain.
POSCO Engineering & Construction has integrated its green energy sales office and business office into the Energy Business Office to facilitate the consolidation of functions related to winning contracts and project functionalities in the power and chemical fields. It has also established a Business Structure Innovation Task Force, focusing on strengthening its portfolio centered on core businesses and enhancing the bidding and construction processes.
POSCO Future M has integrated its energy materials research center and basic materials research group to strengthen technology acquisition and research and development functions, transitioning them directly under the president. The Management Planning Headquarters and Management Support Headquarters have been merged to slim down the staff organization.
POSCO DX has abolished its logistics automation promotion team to reflect business restructuring and decided to focus its capabilities on acquiring DX innovative technologies and creating future revenue streams.
POSCO Group has announced that it will expedite employee appointments following the organizational restructuring and executive appointments and will concentrate its efforts on enhancing business competitiveness through organizational stabilization.