Because of this, critical voices against Chairman Choi are increasing. Attorney Kim Jong-bo of the People’s Economic Committee, a lawyers’ meeting for a democratic society, is also voicing criticism. On January 27th, he warned in front of POSCO’s Gangnam headquarters that’POSCO Chairman Choi Jeong-woo should be nervous.’
This is through the remarks held by civil society organizations such as the Participation Solidarity, POSCO Branch, and POSCO Internal Subcontracting Branch on the day’Press Conference Calling for the Appointment of Public Interest Directors for POSCO, a hotbed for environmental pollution, occupational cancer and industrial accidents’.
What is the reason he sets the day of criticism so straightforward? On the 4th, we conducted a non-face-to-face interview with lawyer Kim Jong-bo.
“The national pension must be exercised by shareholder rights”
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| ▲ Attorney Jongbo Kim holding a press conference in front of POSCO’s Seoul headquarters on January 27th | |
| Ⓒ Internet Journalists Solidarity |
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In connection with pointing out POSCO’s problems through a press conference in front of POSCO headquarters in Gangnam, Seoul on January 27, attorney Jong-bo Kim said, “POSCO has been discharging a large amount of air pollutants without permission while on the outside, while proposing to build an eco-friendly steel mill.” Pointed out.
As a result, “As a result, the cancer mortality rate of Pohang city residents is 1.37 times the national average. “I even filed a complaint with the prosecution for violating the Air Conservation Act for the fact that the automatic measuring device was not installed.”
Attorney Kim also said, “A total of 18 workers were killed in industrial accidents during the three years from 2018 to 2020 at the POSCO workplace.” On January 17, the Ministry of Employment and Labor, He said that he has violated the Safety and Health Act. “POSCO fired three executives when a trade union under the KCTU was established in the company, but the Seoul Administrative Court ruled that it was unfairly dismissed on November 13, 2020,” he added. “It violated the Labor Relations Act.”
In an interview, attorney Kim ordered POSCO to establish a compliance system with executive responsibility in order to solve such problems. In other words, “POSCO must admit that it has violated the law by itself and hold the management responsible for the offense,” he said. “And by forming a new management team, it should have a culture and system in place to never violate the law again.”
Attorney Kim said, “POSCO has violated the Air Quality Conservation Act, the Occupational Safety and Health Act, and the Labor Standards Act,” and said, “Chairman Jeong-Woo Choi, the CEO, did not faithfully perform his duties in accordance with the laws and articles of incorporation, but rather tolerated the violation of various laws and regulations. In particular, it is highly likely that it has been promoted.
Attorney Kim urged Chairman Choi to resign. He pointed out that “Chairman Choi must feel his responsibilities and withdraw himself.”
They also ordered the national pension stewardship code (trustee responsibility principle). Attorney Kim said, “The Stewardship Code has been spreading worldwide since the UK introduced it in 2010.” “The principle of trustee responsibility consists of a total of seven. Among them, the third principle is’The mid- to long-term value of the company to invest in. “It is necessary to periodically check the investment target companies so that the value of investment assets can be preserved and increased by improving the value of the investment.”
He added, “In order to faithfully operate as a trustee in charge of the people’s money, the National Pension Plan should periodically check non-financial factors such as environmental, social, and governance (ESG) in addition to the financial factors of the investment target companies.”
Attorney Kim said, “The National Pension Service is the largest shareholder with 11.75% of POSCO’s stock.” “The National Pension Service is involved in environmental and labor-related misconduct so that POSCO, an investment target company, can grow further in the long term according to the trustee responsibility principle. We must distrust Chairman Jeong-woo Choi.”
He said, “That’s why other CEOs will think,’You must protect the environment and obey the labor laws so that you will not be dismissed.'”
Attorney Jong-bo Kim said, “In order for POSCO to grow, it will be fundamental to make and sell well-made corporate activities,” and “Even so, there should not be environmental pollution.” He emphasized.
“It is because there is a high concern that the export target countries such as the United States will refuse to trade because of POSCO’s environmental pollution,” he said. “In the short term, compliance with environmental regulations may incur costs and lower profitability. It is more advantageous to obey,” he advised.
Lastly, “guaranteeing the lives and rights of POSCO employees can be seen as POSCO’s growth,” he said. “In the end, a corporate culture that considers non-financial indicators important for the growth of a company has spread, and only if there is a management that can implement it. To this end, the National Pension Plan should exercise shareholder rights more actively than at POSCO’s March shareholders’ meeting,” he urged.
Additional text | This article is also featured in Sinmungo News.