News Room - Steel Industry
Posted on 26 Jun 2015
Dongkuk Steel chairman resigns
Dongkuk Steel Mill Chairman and CEO Chang
Sae-joo, who is suspected of embezzlement and illegal gambling, has
resigned from his post, taking responsibility for the steelmaker's
worsening performance in recent years, the company said Thursday.
Korea's
third-largest steelmaker also decided to close one of its plants
producing thick steel plates, which are largely used to build ships and
other large structures, amid falling demand.At the
firm's board of directors' meeting held at its headquarters in downtown
Seoul, Thursday, Chang offered to quit. He is under a criminal
investigation on charges of embezzling about 20 billion won ($18.5
million) from the company to spend on illicit gambling."I
will step down from all official posts, holding myself accountable for
many troubles facing the company," Chang was quoted as saying. "I hope
that all Dongkuk employees work together to bring new changes."His younger brother and Vice Chairman Chang Se-wook will serve as the CEO.The
board of directors also decided to close a thick plate plant in Pohang,
North Gyeongsang Province, to cope with a supply glut caused by
declining demand from shipbuilders and construction firms.Dongkuk also reorganized its business divisions and carried out a reshuffle of its executives.
