Posco's board endorses chairman Kwon's sudden resignation

By Lim Chang-won Posted : April 18, 2018, 11:30 Updated : April 18, 2018, 11:30

[Courtesy of POSCO]



SEOUL -- The board of South Korean steelmaker Posco approved the sudden resignation of Chairman Kwon Oh-joon on Wednesday, but he will retain his post until his successor will be named.

At a meeting in Posco's head office in Seoul, board members agreed to accept his resignation, Kwon said, adding the steel company needs a new leader to grow further. "I thought that it would be better to hand over the management of our company to a person who is more passionate, capable, young and powerful than me," he told reporters.
 
Kim Ju-hyun, an outside director, said that board members endorsed Kwon's proposed resignation after "heated" discussions.  However, the outgoing chairman would retain his post for two or three months to prevent a leadership vacuum.

Despite his good reputation among investors at home and abroad, Kwon who built his career at the company's technology team has been under pressure to give up his seat since President Moon Jae-in took office in May last year.

"I know that Posco chairman Kwon Oh-jun has decided to resign," an official at the presidential Blue House said, admitting Moon's office has a negative view of Kwon, who took office in 2014 and secured his three-year second term in March last year.

Under Kwon's stewardship, Posco has aggressively revamped its structure through a period of painful restructuring, cost cuts and a strategic shift to higher-value products. 
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