'Record Performance and Holding Company Transition' POSCO... Tightening Growth Reins Further

'Management Structure Advancement TF' Launched for Holding Company Establishment
"A Crucial Momentum for a 100-Year Future Company"

[Asia Economy Reporter Oh Hyung-gil] POSCO Group has established the leadership to lead the holding company 'POSCO Holdings,' which will be launched in March. Jeon Jung-sun, President of the Global Infrastructure Division, who has been leading the transition to the holding company, will serve as co-CEO of the holding company alongside POSCO Chairman Choi Jeong-woo.

POSCO launched the 'Management Structure Advancement Task Force (TF)' on the 2nd of next month to prepare for the launch of POSCO Holdings.

The TF is composed of the Management Strategy Team, Eco-friendly Future Materials Team, and Future Technology Research Institute, and the organization is structured around functions such as discovering future new businesses led by the holding company, business and investment management, and research and development (R&D).

The head of the Management Strategy Team, which acts as the group's control tower, will be Jeon, the current co-CEO of POSCO. After the transition to the holding company, Jeon is expected to oversee overall management as co-CEO alongside Chairman Choi. Jeon has concurrently served as head of the Strategic Planning Headquarters and has led major group restructuring efforts, including the transition to the holding company.

Furthermore, Yoo Byung-ok, head of the Industrial Gas and Hydrogen Business Division, was appointed as head of the Eco-friendly Future Materials Team, which leads new businesses such as lithium and hydrogen, and Jeong Chang-hwa, head of the New Growth Division, was appointed as head of the Future Technology Research Institute, responsible for future R&D.

A POSCO official explained, "We recognize the launch of the holding company as a crucial momentum for the next 100 years of the company and plan to focus on rapid restructuring under the holding company system."

At the extraordinary shareholders' meeting held on the 28th of last month, the physical division plan was approved, deciding the transition to a holding company system for the first time in 54 years since its establishment in 1968. The existing POSCO will remain as the holding company POSCO Holdings, and a new steel business company, POSCO, will be created. The steel business company will be led by Kim Hak-dong, head of the Steel Division, who was promoted to vice chairman last December.

Continuing Record-Breaking Performance This Year

POSCO, which recorded its highest-ever performance last year, plans to solidify its growth trajectory this year by making large-scale investments.

POSCO's consolidated operating profit last year reached 9.238 trillion KRW, a 284.4% increase compared to the previous year, and annual sales surpassed 70 trillion KRW for the first time in the company's history, exceeding the previous record of 68.009 trillion KRW set in 2011.

POSCO forecasts that this year's sales will reach 77.2 trillion KRW on a consolidated basis and 39.8 trillion KRW on a standalone basis. Notably, this year's investment cost is expected to be 8.9 trillion KRW on a consolidated basis, the largest scale in the past five years.

Investment plans are expected to be concretized mainly in overseas divisions and new growth engines. Investments in upstream and downstream processes in Indonesia, joint venture steelworks in India, and feasibility studies for eco-friendly electric furnace integrated steelworks in the United States will be reviewed to secure demand in growth markets.

Significant investments will also be increased in the secondary battery materials and clean hydrogen sectors. In the secondary battery materials sector, production capacities for cathode and anode materials are planned to be expanded to 105,000 tons and 82,000 tons respectively this year. Mass production systems for lithium and nickel will be established, and the recycling business will be expanded by the fourth quarter.

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