South Korean steelmaker Dongkuk Steel Mill Co. is expected to undergo transformation following the return of its Chairman Sae-Joo Chang after a special pardon in August last year. Dongkuk Steel plans to shift to a holding company structure and seek future growth in the materials, components, and equipment businesses in the steel sector.

Dongkuk Steel held a board meeting on Thursday and approved the spin-off agenda involving Dongkuk Holdings Co., Dongkuk Steel Mill, and Dongkuk CM Co.

The board of Dongkuk Holdings will be joined by Chang and his brother Vice Chairman Saewook Chang but it will be chaired by the younger Chang that had been the chief executive officer of Dongkuk Steel since 2015 when his older brother stepped down due to breach of trust and other charges.

“Vice Chairman Chang and Chairman Chang will develop a future growth strategy at Dongkuk Holdings, the strategic control tower,” the steelmaker said in a statement.

Chairman Chang, however, is expected to stay behind the scenes and support his brother.

Chairman Chang is expected to focus on the industry of materials, parts, and equipment to explore new growth engines.

Dongkuk Steel Mill appointed Vice President Choi Sam-young as an executive officer. Choi, a former engineer, had been dedicated to fieldwork with professional experiences in Incheon, Dangjin, and Pohang plants.

Dongkuk CM CEO Park Sang-hoon joined the company in 1993 as an engineer. He has developed his expertise in cold rolling.

By Oh Soo-hyun and Han Yubin

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