POSCO, Holding Company Transition Draws Interest from Business Units... Secondary Batteries, Hydrogen, New Materials, etc.

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[Asia Economy Reporter Jeong Dong-hoon] POSCO has announced a new century by transitioning to a holding company system after 54 years since the group's founding. Their choice aims to lead the flow of industrial upheaval represented by eco-friendly and mobility sectors. Accordingly, the corporate value of business companies within the POSCO Group, aside from the steel business, is drawing attention.

According to the business community on the 31st, POSCO plans to focus on discovering future new businesses, managing operations and investments, conducting research and development, and establishing ESG strategies after transitioning to a holding company. Chairman Choi's blueprint is to raise the corporate value of existing business companies and prepare future growth engines.

POSCO's subsidiaries include listed companies such as POSCO Chemical (secondary batteries), POSCO M-TEC (new materials), POSCO ICT (IoT, big data, artificial intelligence), as well as unlisted companies like POSCO Energy (renewable energy) and POSCO Mobility Solutions (electric vehicle drive motors, a subsidiary). Most of these are related to future industries such as eco-friendly and mobility sectors.

Currently, a system producing 114,000 tons annually of secondary battery materials such as cathode and anode materials has been established. Lithium and nickel have completed R&D and pilot production, entering the stage just before commercialization, and business results are expected to become visible. In the hydrogen business, POSCO is strengthening its business capabilities through joint project reviews with overseas companies and R&D cooperation with specialized institutions.

However, POSCO's corporate value is currently undervalued. Although it was ranked among the top five in market capitalization, it has recently been pushed out of the top 10 by companies in IT, bio, and secondary battery sectors such as Kakao, Naver, and Samsung Biologics.

At the general meeting of shareholders on this day, Chairman Choi stated, "Despite progress in new growth business areas and record-high performance, POSCO's market capitalization is undervalued at less than half compared to 2007." He added, "If the perception that our business identity is an eco-friendly materials company spreads, efforts as a growth stock will be properly reflected in corporate value." POSCO is expected to secure liquidity of investment funds through IPOs of unlisted companies and enhancement of corporate value of existing listed companies following the transition to a holding company.

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