POSCO Launches Support for SME Exports Using Its Own Platform

POSCO and Korea International Trade Association Sign Cooperation Agreement on Maritime Transport Support for SMEs on the 21st
Providing Idle Space on Ships to SMEs Without Transactions with POSCO... Effective from Next Month 1st
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[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO is actively stepping up support for small and medium-sized enterprises (SMEs) facing difficulties in exports due to recent ship shortages and soaring freight rates.

POSCO (Chairman Choi Jeong-woo) and the Korea International Trade Association (KITA, Chairman Koo Ja-yeol) signed a on the 21st at the Trade Tower in Samseong-dong, Seoul. Attendees included POSCO’s Head of Logistics Business Division Kim Kwang-soo, KITA Vice Chairman Lee Kwan-seop, and Kim Mi-ae, Head of the Ministry of Trade, Industry and Energy’s Public-Private Joint Export-Import Logistics Comprehensive Response Center.

POSCO listened to the difficulties of its small customers, who often find it hard to secure ships on time due to small export volumes and have to pay relatively high freight rates, which lowers their export competitiveness. In response, POSCO developed an ‘Export Logistics Consolidation Platform’ to allow customers’ small-volume cargo to be shipped together with POSCO’s shipments, and has been running a pilot operation since this year.

The ‘Export Logistics Consolidation Platform’ is a win-win logistics platform developed by POSCO that eliminates the hassle of export companies wishing to consolidate shipments having to contact shipping companies frequently to check shipping schedules. It enables schedule confirmation and consolidation application all at once online. During the pilot operation period, the volume of customer cargo consolidated with POSCO’s steel products reached 40,000 tons.

Through this agreement, POSCO plans to open the platform to SMEs that do not have direct business relationships with POSCO starting next month. Based on a stable annual export volume of 15 million tons, POSCO has signed long-term transport contracts with major national shipping companies and intends to systematically support domestic SMEs by actively utilizing its global logistics infrastructure network. The cargo eligible for consolidation includes bulk cargo such as steel products, and the transport regions cover more than 80 ports across seven global regions.

Detailed information will be posted later this month on POSCO’s e-commerce site Steel-n.com (www.steel-n.com) and the Korea International Trade Association website (www.kita.net). Telephone consultations are also available through KITA’s Logistics Service Office (02-6000-5754) or the Trade Call Center (1566-5114).

Amid the ongoing global shipping crisis caused by COVID-19, this is the first time a large corporation has stepped in to support SME export logistics. POSCO expects this cooperation to serve as a catalyst for “export logistics win-win” between large corporations and SMEs in Korea.

Lee Kwan-seop, Vice Chairman of KITA, said, “We expect that POSCO’s support will help alleviate the logistics difficulties faced by struggling SMEs, even if only a little.” He added, “We hope that this support project will be the beginning of more cooperation between large corporations and SMEs in the future.”

Kim Kwang-soo, Head of POSCO’s Logistics Business Division, said, “We are pleased to join the Ministry and KITA in overcoming the logistics crisis.” He added, “We will not only contribute to the nation’s trade development by sharing our many years of maritime transport experience and logistics infrastructure assets with small export companies, but also firmly practice our corporate citizenship management philosophy of growing together with SMEs.”

This content was produced with the assistance of AI translation services.