Posco Squeaking from External Pressure, Holding Company Ultimately 'Returns' to Pohang

POSCO Holdings and Future Technology Research Institute Headquarters Move to Pohang

Photo by POSCO

[Asia Economy Reporter Jeong Dong-hoon] POSCO Group has decided to change the establishment location of POSCO Holdings, which is set to launch in two days, to Pohang, Gyeongbuk, and to also place the headquarters of the Future Technology Research Institute in Pohang. Due to political pressure causing the holding company system for promoting eco-friendly new businesses to falter from the start, concerns are rising that the leap to an eco-friendly and future materials specialized group may face setbacks.

According to the business community on the 28th, POSCO has drafted an agreement with Pohang City to relocate the holding company POSCO Holdings to Pohang by March next year. Along with this, the Future Technology Research Institute, which was planned to be established in Seoul, will have its main office in Pohang and a branch office in the metropolitan area. To promote regional coexistence cooperation and investment projects with Pohang City, POSCO, and POSCO Holdings, a task force (TF) is expected to be formed for mutual consultation. It is known that POSCO President Jeon Jung-sun met with National Assembly member Kim Jeong-jae on the 25th and conveyed a sudden acceptance of relocating the POSCO holding company address and establishing the Future Technology Research Institute in Pohang. However, the relocation of POSCO Holdings’ headquarters requires amendments to the articles of incorporation and must pass through the board of directors and shareholders’ meeting later.

This decision was greatly influenced by opposition from the political sphere and local community. After POSCO decided to transition to a holding company system on the 28th of last month, major presidential election candidates collectively voiced opposition to POSCO’s establishment in Seoul for regional balanced development. Civic groups and local politicians in Pohang also enforced their opposition to the holding company’s establishment in Seoul through various rallies and protest visits. Amid this atmosphere, POSCO stated, "There has been a persistent misunderstanding in the Pohang community that POSCO would leave Pohang," and added, "POSCO and Pohang City will prevent the situation from escalating to extremes and resolve the issue amicably while minimizing the impact on the local economy."

Meanwhile, POSCO Holdings and the Future Technology Research Institute will serve as control towers for investment and research and development (R&D) in new business areas such as artificial intelligence (AI), secondary batteries, and hydrogen, thus facing the challenge of securing research personnel in fiercely competitive new growth sectors.

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