이 기사는 2022년 02월 09일 08:08 thebell 에 표출된 기사입니다.

Posco Chemical is expected to be the largest beneficiary of South Korean steel giant Posco’s transition to a holding company structure, with the official launch of the new holding company slated for next month.

With the planned transition, Posco’s mainstay steel business will be split off into a separate unlisted entity that will be wholly owned by a new holding company named Posco Holdings, which will focus on new businesses, including secondary battery materials.

Posco plans to seek growth in seven core businesses: steel, secondary battery materials, lithium and nickel, hydrogen, energy, building and infrastructure, and food. Posco Chemical plans to secure the production capacity of 415,000 tons of cathode materials and 258,000 tons of anode materials by 2030.

Posco Group chairman and chief executive Choi Jeong-woo had served as CEO of Posco Chemical for 5-6 months before being appointed as chairman of the group. It is said that he has a strong attachment to the secondary battery materials business and has a deep understanding of the business.

There is a possibility that one of the top executives of Posco Holdings may be appointed as Posco Chemical’s other non-executive director as the term of Jeong Suk-mo, who is currently in the role, will expire next month. Jeong is the head of Posco’s secondary cell materials division.

Some market insiders cautiously point out that the transition to the holding company may not necessarily benefit Posco Chemical as it could weaken efficiency of its decision-making process. Although major decisions have been made internally by Posco Chemical, Posco Holdings may have a stronger influence on the process in the future.

Posco Holdings will have around 200 employees, which is quiet large compared to other holding companies in South Korea. The fact that many of its employees will be in charge of managing subsidiaries is raising concerns that the holding company will get more involved in its subsidiaries.

More than 30 domestic affiliates of Posco are understood to have carried out autonomous management unlike affiliates of other conglomerates in the country. This has been possible because the group hasn’t had an owner which plays a pivotal role while Posco, which has served as the de-facto holding company, has focused on its steelmaking business.

There has been no case that Posco Chemical’s outside directors voted against agendas in board meetings since 2010, but other non-executive director appointed by Posco cast a dissenting vote three times. This means that there was no arrangement between Posco and Posco Chemical in advance on the agendas for the board of directors meetings.

“Chairman Choi expressed his intention to focus on new businesses through Posco Holdings, which means that it may be more deeply involved in the management of affiliates,” an industry source. (Reporting by Eun-a Jo)