As the profitability of the institutional sector for secondary batteries (batteries) has worsened, the role of Um Ki-cheon, who was appointed as CEO of POSCO FUTURE M at the end of last year, is becoming more prominent. It is reported that Chung In-hwa, chairman of POSCO Group, has evaluated Um as the right person to lead the company's restructuring. Former CEO Yoo Byeong-ok moved to the Pohang Institute of Industrial Science and Technology (RIST) after just one year.
Um is considered to have a different background than previous representatives who are regarded as experts in battery materials. Although he graduated from the Department of Mechanical Design, he built his capabilities in planning and strategy after joining the company. Former representative Yoo is known as an authority in the eco-friendly future materials sector within the group, being a metallurgist by training. Kim Joon-hyung, the first head of POSCO FUTURE M, which was renamed from POSCO Chemical, is also an engineer with a background in metallurgy.
POSCO Group has chosen a new leader, taking into consideration comprehensive strategies in financial and risk management, as uncertainties in its battery business have increased due to declining electric vehicle demand.
Um is noted for having a bold and assertive personality, which contrasts with the comparatively mild working styles of previous representatives. While there are mixed evaluations from internal members due to his strong will and beliefs, the consensus is that his work style is thoroughly meticulous and he demonstrates strong accountability.
Chairman Chung is reportedly of the opinion that a presence and charismatic leader is necessary to lead POSCO FUTURE M. Rather than promoting new businesses and achievements, he believes that it is a time for decisive actions based on cost reductions and investment pace adjustments, which may also require candid feedback to be directed internally.
Despite POSCO FUTURE M experiencing a turnaround in profitability in the first quarter due to an increase in cathode sales compared to the previous quarter, a sense of crisis surrounding its battery business still remains. The decision for POSCO FUTURE M to hold a board meeting on the 13th and proceed with a capital increase in the $1 trillion range is due to this reason.
Signs of increased financial burdens on the company have already been detected in various areas. After recording a loss in the $200 billion range last year, POSCO FUTURE M has begun to withdraw or postpone investment plans from the start of the year and is liquidating non-core assets, such as the Gumi cathode plant. The operating rate of the Sejong anode factory has dropped to 10% to 20%, and the situation for POSCO Filbara Lithium Solutions is worsening as lithium prices have plummeted.