SeAH Transforms into Holding Company for Specialty Steel Business... "Leading Development of Electric Vehicle Parts and Aerospace Materials"

Comparison of SeAH Group's Special Steel Business Subsidiary SeAH Besteel's Holding Company Before and After

[Asia Economy Reporter Choi Dae-yeol] SeAH Besteel announced on the 20th that it will spin off its special steel business company through a physical division and transform the surviving company into a holding company.

The holding company, SeAH Besteel Holdings, will be responsible for devising strategies for its core subsidiaries including special steel, stainless steel, and aluminum, as well as seeking new business opportunities. The newly established operating company, SeAH Besteel, will continue to manage the existing special steel business. The company explained, "This decision is aimed at specialized and systematic management focused on the special steel business and generating horizontal synergies among subsidiaries," adding, "It also intends to enhance non-financial capabilities through discovering future new growth engines and strengthening ESG (Environmental, Social, and Governance) management centered on the board of directors."

The SeAH Group is divided between the late founder Lee Un-hyung’s eldest son and the current chairman Lee Soon-hyung, each operating their own holding companies. The son of former chairman Lee Un-hyung, Lee Tae-sung, CEO of SeAH Holdings, leads SeAH Besteel, which decided on the holding company transition this time, along with other non-ferrous metal business affiliates. The special steel business affiliates will be separately grouped into an intermediate holding company structure. Chairman Lee Soon-hyung’s eldest son, Lee Joo-sung, serves as president of SeAH Steel Holdings and is in charge of the steel pipe business. Both CEO Lee Tae-sung and President Lee Joo-sung were promoted to president in this year’s regular personnel reshuffle.

Lee Tae-sung, CEO of SeAH Holdings

Previously, SeAH Besteel had 10 subsidiaries and sub-subsidiaries under its umbrella, including SeAH Changwon Special Steel and SeAH Aerospace Defense Materials, as well as global corporations. Both SeAH Changwon Special Steel and SeAH Aerospace Defense Materials are industry leaders with sound financial health, but the company judged that their corporate value was not fully recognized as they were subsidiaries of SeAH Besteel. It is expected that changing to a holding company structure will create a parallel structure that can enhance corporate value. However, to prevent shareholder value dilution due to initial public offerings (IPOs) of core subsidiaries, no additional IPOs of subsidiaries will be conducted.

The newly established special steel holding company (SeAH Besteel Holdings) will be responsible for strategic tasks such as business portfolio restructuring, entry into new overseas markets, and digital transformation. It plans to lead material development used in high-growth potential sectors such as electric vehicle parts, the hydrogen ecosystem, and the aerospace industry. The holding company will also establish an investment-dedicated department to explore investment opportunities in promising technologies or companies. This transition process will be finalized in early April following the regular shareholders' meeting on March 25.

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