OREANDA-NEWS. March 27, 2014. POSCO reorganized 6 previous sectors, including Planning & Finance, Technology, Growth & Investment, Carbon Steel, Stainless Steel, and Management Support into 4 divisions, comprising Steel Business, Steel Production, Financial Investment, and Management Infrastructure, and also announcing a reshuffle of executives accordingly.

The key feature of this reorganization is that the previous organizational structure, which had been classified into business fields such as Carbon Steel, Stainless Steel, and Growth and Investment, has been restructured into core functions such as Steel Business and Production. A few other noteworthy changes include the decision to enhance technological competitiveness with the convergence of Marketing and Research, and further reinforce the company`s competitiveness at headquarters. In addition, POSCO also established a Value Management Department to perform a regulating function such as reorganizing the business structure and improving the financial structure of POSCO and investment companies.

The Steel Business Division was established by combining the previous Marketing Organization with the product solution function, and Carbon and Stainless Steel were integrated into the Steel Production Division. The former Growth & Investment Business was combined with finance to thoroughly verify financial performance such as early profit assurance, and reorganized into the Financial Investment Division. The Management Infrastructure Division was established by combining Management Support with public relations. The Value Management Department will be responsible for coordinating the investment projects and management policies of POSCO and investment companies.

Along with this reorganization, Vice President In-hwan Chang was appointed Head of the Steel Business Division, while Director Candidates Jin-il Kim, Dong-joon Yoon, and Young-hoon Lee were appointed Heads of the Steel Production Division, Management Infrastructure Division, and Financial Investment Division, respectively.

The regular reshuffle of executives was also announced the same day, radically reducing the number of `management executives` responsible for support in order to switch to small yet strong organization, and also implement a `specialized executives` system to create a performance-driven organizational atmosphere.

Accordingly, the number of management executives responsible for support affairs, such as planning and procurement, besides from marketing and production was reduced by at least 50%.

Moreover, instead of the executive treatment system managed limitedly in the R&D and Technology, POSCO began to implement another system starting this year, in which those who have specialized competencies and experience in R&D, Technology, and business management are appointed `specialized executives,` apart from `management executives` responsible for organizational management and performance.

These specialized executives were appointed in the fields of Research, Technology, Marketing, Raw Materials, Finance, Legal Affairs, Strategy, HR, and PR, and all are expected to rejuvenate the overall atmosphere into a performance-driven organization and enhance corporate value in general by carrying out individual projects in each field.

Executive Vice President Jung-sik Lee (General Pohang Works Superintendent) was promoted to Vice President of Management Executives, and Senior Vice Presidents Chang-hee Lim, Won-ki Kim, Suk-bum Ko, Ji-yong Kim, Young-ki Lee, Se-hyun Kim, and Chang In-hwa were promoted to Executive Vice Presidents of Management Executives. Additinally, Fellow Chul-gyu Jung and Senior Vice Presidents Seong Yoo and Seok-joo Hwang were promoted to Executive Vice Presidents of Specialized Executives.

Dong-ho Kim and 9 others were newly appointed Senior Vice Presidents of Management Executives, and Young-woo Lee and 13 others were newly appointed Senior Vice Presidents of Specialized Executives.

Concerning investment companies, Senior Vice President Jong-jin Choi of POSCO ICT, Senior Vice President Won-hui Lee of Daewoo International Corporation, and Senior Vice President Min-yong Noh of POSCO Chemtech returned to POSCO as Senior Vice Presidents of Management Executives. Executive Vice President Cheong-myung Jo of Daewoo International Corporation and Senior Vice President Jeong-shik Kwak of POSCO Terminal also shifted their positions to Executive Vice President of Specialized Executives and Senior Vice President of Specialized Executives. Jo was also appointed acting Head of the newly established Value Management Department.