[Opinion] A New Challenge for Companies, A New Leap Forward Together with the Region

Lee Baek-gu, Chairman of Gwangyang Chamber of Commerce and Industry

Since POSCO Gwangyang Steelworks began its journey in the embrace of Gwangyang in 1983, 39 years have already passed.

With the warm love and support of Gwangyang City and the local community, Gwangyang Steelworks has grown into the world's best and largest steel mill producing automotive steel sheets.

Last December, POSCO announced its plan to transition to a holding company system to prepare for the rapidly changing business environment, including the major shift to a low-carbon and eco-friendly era, acceleration of technological innovation, and strengthening of ESG management, aiming for sustainable growth and enhancement of corporate value.

However, concerns and criticisms about the holding company transition have arisen from Pohang and the Daegu-Gyeongbuk region.

While we fully understand the intention to protect local communities, it is clear that voices calling for the separation of Pohang Steelworks and Gwangyang Steelworks are spreading, along with citizens’ worries and concerns about whether this situation might affect new business investment plans in our Gwangyang area.

The POSCO Group has been continuously investing in batteries, which are core materials for eco-friendly automobiles, in the Gwangyang region.

In April last year, it invested 900 billion KRW to start construction of a lithium hydroxide plant in Yulchon Industrial Complex capable of producing 1 million electric vehicles annually, and the following month, it invested an additional 215 billion KRW in the battery recycling business.

Recently, it also domestically localized rare gases used in semiconductors for the first time in Korea at Gwangyang Steelworks and shipped products, showing no hesitation in investing in new businesses in the region.

These investments and changes are expected to revitalize the local economy and create new jobs, establishing Gwangyang as the mecca of secondary batteries, becoming a new growth engine for Gwangyang’s future, and further serving as the first step toward leaping forward as Jeonnam’s number one economic city.

However, observing the recent situation, concerns are growing that the voices from Pohang and Daegu-Gyeongbuk regions might cause disruptions to the planned investment projects in our area.

We earnestly request the following to firmly keep the promise made to the citizens of Gwangyang and to realize the corporate philosophy of being a “corporate citizen that grows together.”

First, for the trust between POSCO and Gwangyang City, please proceed without any setbacks with the investment in future new growth businesses planned for Gwangyang.

Second, please clearly commit to expanding local talent recruitment through programs such as the POSCO Employment Academy and establishing plans to utilize local companies through improvements in the purchasing system.

The world is changing rapidly. If a company cannot adapt to the environment, not only the company but also the region can collapse in an instant.

To prevent this and turn crises into opportunities, companies are struggling, and the region must support and encourage these efforts.

However, I would like to emphasize that companies must never forget their gratitude, as their current success was possible because of the local community.

Fortunately, it is truly reassuring from the local residents’ perspective that through the holding company transition, POSCO plans to strengthen ESG management by focusing on the environment, making governance transparent, developing the company, and striving to grow together with the local community.

We hope that continuous new business investments and social responsibilities will be pursued to achieve more efforts for co-growth with the local community.

As a citizen who loves Gwangyang and always takes pride in having the world’s best company in the region, I sincerely hope that the region and the company will overcome difficulties well and grow one step further.

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