The board of South Korea’s sixth largest conglomerate Posco Group recommended Choi Jeong-woo, chief executive of chemical materials unit Posco Chemtech Co., as the new chairman and CEO of the world’s fifth major steel mill.

If the choice passes the shareholders’ meeting on July 27, he will be the first to head the 50-year-old steelmaker without metal engineering background. Born in 1957, Choi graduated from Pusan National University and majored in economics. All CEOs since the steelmaker was privatized in 2000 had degrees from elite Seoul National University.

The steelmaker has recently turned towards developing and grooming materials for secondary batteries whose demand will surge in the automated and electric mobility age.

After joining Posco in 1983, he mostly worked for corporate management and financial affairs instead of steel-related divisions. He also led the group’s restructuring since July 2015.

“This year marks the 50th anniversary for Posco,” said Choi on Sunday, adding that “I will work hard and cooperate with all the stake holders - employees, clients, suppliers, and shareholders - to put Posco for solid growth for another 50 years.”

He replaces Kwon Oh-joon who offered to resign without completing his second term that ends in March 2020. It had been a ritual for the CEOs of public entities - even after privatization - to make way for new choices when a new president takes office as public enterprise executive seats long served as rewards for campaign team members.

Shares of Posco rose 3.06 percent to close Monday at 354,000 won.

By Woo Je-yoon and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]