It seems the embattled POSCO chief executive officer Chung Joon-yang has yet to step down.

The nation’s top-ranking steelmaker POSCO was once again shaken by rumors on Friday that its chairman would formally step down at a board of directors meeting on escalating pressure from the Park Geun-hye government.

Chung is considered as a man of the previous administration ― and in Korean political circles, state-run and even formerly state-run companies like POSCO, a new government means a new CEO.

But Chung did not take any such action on Friday, despite pressure for his resignation gaining momentum after telecom giant KT’s chairman Lee Suk-chae quit amid the prosecution’s ongoing corruption probe.

But officials denied the rumors, with one saying, “We are perplexed that rumors on chairman Chung’s resignation would emerge whenever we hold a directorate meeting.”

“It is regretful that POSCO, which clearly belongs to the private sector, should be swayed by political changes,” another added.

Chung took office as the steelmaker’s chief back in 2009, under the former Lee Myung-bak administration, and was reelected last year for a two-year term.

He was also elected last month as new chairman of the World Steel Association, the world’s most influential steel organization, as if to shake off his resignation rumors.

But speculation escalated that Chung was rapidly losing ground under the Park Geun-hye government, especially after he was repeatedly excluded from the president’s economic delegations during her trips to China, Vietnam and the U.K.

This was seen as a unilateral decision as POSCO not only is the country’s sixth-largest conglomerate but also has had a firm business foothold in Vietnam since the early 1990s.

Amid such growing pressure, Chung said that he would “not cling to his position” but look after POSCO’s best interest, hinting at his possible resignation.

Industrial observers thus suggested that the issue could be brought up next month in the year’s last directorate meeting, so that Chung’s resignation may be confirmed before the end of his term in March next year.

POSCO’s former chairmen Yoo Sang-boo and Lee Ku-taek, too, left their posts before the end of their terms, amid the incoming government’s investigation into their corruption charges.

By Bae Hyun-jung (tellme@heraldcorp.com)