POSCO Holdings to undergo tax audit amid intensifying gov't pressure

• Published date: 09 March 2023
• Publication title: The Korea Times

The National Tax Service (NTS) has decided to conduct a regular tax audit of POSCO Holdings later this month, causing speculation that it could prompt POSCO Group Chairman Choi Jeong-woo to step down voluntarily before he finishes his term in March next year, according to industry officials, Thursday.

POSCO Group dismissed the speculation, saying this is a routine tax audit carried out by the tax agency once every four to five years. The steelmaking group underwent its previous tax audit in 2018.

The POSCO Group chairman, who was appointed under the Moon Jae-in administration, however, has faced intensifying pressure under the presidency of Yoon Suk Yeol.

The president said earlier this year that "stewardship" is needed at companies with a multiple ownership structure that were privatized after being operated in the past as state-run enterprises. In the capital market, stewardship refers to the interference of institutional investors in the management of the companies they invest in.

KT, one of the companies with a multiple ownership structure, has already been forced to replace its incumbent CEO, Ky Hyeon-mo. He gave up seeking another three-year term, following a severe backlash from the telecommunication firm's largest shareholder, the National Pension Service, as well as from the ruling People Power Party (PPP).

Korea's leading banking groups have also replaced their respective chairmen, as the president urged them to pursue...