November 29, 2024

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Jeong Tak, CEO of Posco International (Posco)

South Korean steel giant Posco Group’s year-end executive reshuffle is expected to be delayed to next year, possibly later in January, amid the still ongoing efforts to normalize its typhoon-hit steel mills, industry sources said Wednesday.

In September, Posco had to suspend the operation of its Pohang steel plants after key facilities were hit hard by a power outage caused by typhoon Hinnamnor.

Considering the recovery work is speeding up to be completed by the end of January, sources said, the group’s executive reshuffle is very likely to be carried out around that time.

"We are planning to conduct CEO-level personnel appointments in January after the restoration processes are largely wrapped up. The exact timing is not known, but it is likely it will be held mid-January," a Posco official said.

On Tuesday, the group’s affiliated companies announced leadership changes.

Posco Group President Jeong Tak was named the first CEO of the merged unit between Posco International, a trading unit, and Posco Energy, an LNG plant operator, which will be newly launched as Posco International on Jan. 2.

In August, Posco boards approved the merger of the two units with aims to establish a complete value chain for the LNG business.

A marketing veteran who served as the president of Posco International’s Kuala Lumpur branch, Jeong is expected to play a leadership role in stabilizing the organization and exploring lucrative eco-friendly energy markets.

During the reshuffle, Kim Jun-hyung was appointed as the new president of Posco Chemical.

Previously a CEO of SNNC, a nickel-supplying affiliate of Posco, Kim is known to have taken SNNC's nickel business to the next level by producing high-purity nickel for high-volume secondary batteries.

Jeong Ki-seop, the current president of Posco Energy, was moved to the head position of the management strategy team at Posco Holdings, with company's expectation that with his previous experience serving as the CEO of Posco Energy and head of management planning at Posco International, he would be well-suited to manage future crises as an experienced financial expert.

Kim Hag-dong, vice chairman of Posco, retained his position in office. Posco said the decision follows Kim's quick normalization of operations at Posco's steel mills, as typhoon Hinnamnor skirted the company's Pohang plants in September -- with storms and heavy rains causing a power outage at key facilities inside the plant.

Posco Engineering & Construction CEO Han Sung-hee, Posco ICT CEO Jung Duk-kyoon, and Posco Flow CEO Kim Kwang-soo also retained their positions in office, in recognition of their stable operation of business under difficult conditions.

In the meantime, Posco suffered a total of 435.5 billion won ($343 million) in losses following the Sept. 6 typhoon, including 222.1 billion won from the production suspension alone.

Since then, combined efforts have been made across the group to restore the damaged plants, with 13 of the 18 plants becoming fully operative as of December. Posco said it plans to restore two more plants by the end of the year.