Posco Daewoo, the trading arm of South Korean steel giant Posco, said Thursday its executives will spend over 10 percent of their monthly income to purchase company stocks in a bid to contain a value plunge following a recent gas pipeline accident in China.
Seventy-six executives are to take part in the efforts starting with next month’s pay.
Shares of Posco Daewoo have dropped about 30 percent since early June due to concerns of a setback in gas supply following the explosion of a gas pipeline owned by China National Petroleum Corporation in Guizhou province in southwestern China, on June 10.
“The Myanmar gas field is a long-term project that can produce gas for some 20 years. A temporary drop in sales volume does not lead to a drop in value of the gas field,” said Posco Daewoo in a statement.
“To recover confidence in the company’s future growth and shareholders’ trust, executives will take responsibility for the drop in stock value by purchasing our shares.”
Its operating profit in the second quarter this year is expected to total 136 billion won ($121.2 million), up 40.37 percent on-year, the company said.
By Kim Bo-gyung (
lisakim425@heraldcorp.com)