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Chung resigned on Friday November 15 after four years at Posco's helm. He had been re-elected to a three-year term as chairman in March 2012.
There were media reports that his position had become untenable following elections that ushered in a new government in Seoul.
But Chung said there had been "no external pressure" behind his decision.
The company will soon form a nomination committee comprised of six external directors to recommend a replacement before the shareholder meeting in March, a company spokesman said Monday November 18.
The role of World Steel Assn (Worldsteel) chairman is also up for discussion following news of Chung’s resignation, according to the association.
Chung was appointed Worldsteel chairman in October.
In its most recent financial report, Posco posted a 38% fall in operating profit to 633 billion Won ($587 million) for its September quarter on sluggish sales and weak prices.
Posco, South Korea's biggest steelmaker, will name a new chairman and ceo to replace the outgoing Chung Joon-yang at an annual general meeting in March, the company said.