POSCO
Shareholders Meet

Annual meeting approves plan for more transparent management

POSCO's shareholders'meeting on February 24 at POSCO Center resolved to separate the offices of CEO and chairman of board of directors in a move to make the management more transparent. The annual meeting also approved the provision in the company regulation, allowing the establishment of the CEO Candidate Recommendation Committee and strengthening the responsibility of department managers.
The board of directors meeting following the shareholders meeting elected Park Young-joo board chairman of the steel giant. The new board chairman had been an outside director for the steel producer and chairman of I-kun Industry Co., which strengthened the function of supervisory and checking roles on management.
The shareholders also approved the proposal to remove the stock option practice and their action to set up the CEO Candidate Recommendation Committee would be looked upon as a highly positive move for transparency in management for POSCO and an ideal model for corporate governance structures.
Shareholders also reelected Chairman Park of I-kun Industry as an outside director, along with Seo Yoon-seok, dean of Ewha Woman's University Management Graduate School. They approved the appointment of Huh Sung-gwan, president of the Gwangju Science Technology Institute, to serve as an outside director. He is a former Maritime Affairs and Fisheries Minister and Minister of Administration and Home Affairs.
POSCO Chairman Lee Ku-taek, in his speech, said POSCO recorded the biggest steel output at 30.54 million tons, on sales of 21.7 trillion won and net profit of 5.9 trillion won, all historic records last year. The chairman went on to remark that he will try to make the steel giant, a major leader in the world steel industry by making changes to achieve better entrepreneurial value through doubling competitive power and profitability as a globally superb business entity this year.
The board of directors meeting also approved the promotion of Vice President Yoon Suk-man and Vice President Lee yoon as presidents. President Yoon has been put in charge of the marketing sector, while President Lee has been assigned to take charge of the stainless steel sector.

Hot Press Forming Plant:
In the meantime, POSCO dedicated a plant turning out parts for automobile steel plates at its Gwangyang steel complex. The hot press forming plant will make the steel giant more competitive as the product will be used to make parts for automobile. The company launched the construction of the plant in November last year and is capable of turning out 1 million pieces of auto parts per year.
The steel giant built the plant to cope with the growing needs of the auto industry for hard and yet light steel to make auto parts in light of high fuel prices. The hot press forming technology, which POSCO introduced is regarded as the latest and best one to solve the situation. POSCO also built another hydro forming plant to produce stainless steel plates for automobile exhaust parts. With the completion of the plants, the steel company will be able to supply 300,000 pieces of auto parts for supply to automobile companies both at home and abroad including GM Daewoo Auto Technology, Renault-Samsung, Ssangyong Motor, and a Chinese auto company in China.
POSCO is able to provide a package of total solution for steel products for automobile production and parts, along with tailor welded blanks thanks to the completion of the new plant. The steel giant has solidified its position as the maker of hard and yet light steel plates tailor-made for the automobile industry.
At the dedication ceremony of the plant were a number of high-ranking officials from the auto industry including GM Daewoo, Hyundai Motor, Kia Motors, Ssangyong Motor and Renault-Samsung altogether 150 were on hand to celebrate the completion of the plant. nw

A view of POSCO shareholders meeting.

POSCO Chairman Lee Ku-taek