POSCO CEO says split-off units will never be listed

POSCO Group Chairman and Chief Executive Choi Jeong-woo on Monday reaffirmed the group's determination not to list on the stock market the steelmaking unit and other businesses to be separated from its to-be-launched holding company.

The parent group of the world's fifth-largest steelmaker on Dec. 10 approved a restructuring plan to split off POSCO Co. into POSCO Holdings and a steelmaking company, with the holding firm owning a 100% stake in the latter.

"Unlike other business groups, we will never list subsidiaries to be split off from our holding company," Choi told reporters when asked about how the steel giant's corporate governance reform will win support from shareholders opposing the transition into a holding company structure.

"We are determined to shift into a new ownership structure, which was approved by our board of directors," he said on the sidelines of a memorial service held on the occasion of the 10th anniversary of the death of POSCO founder and Chairman Park Tae-joon.

His remarks were aimed at alleviating shareholder concerns over equity value dilution from possible parent-subsidiary listings.

"We will do our best for POSCO shareholders to fully benefit from (the results of) new businesses such as electric vehicle materials, hydrogen and lithium. I don't expect shareholders to object to our plan," Choi noted.

Write to Jung-hwan Hwang at jung@hankyung.com
Yeonhee Kim edited this article.