Jang In-hwa, POSCO Chairman, Signals Expansion of R&D Investment for Leap to Top-Tier with Super-Gap Technology

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Jang In-hwa, Chairman of POSCO Group, emphasized the need to secure 'super-gap' technologies to enhance business competitiveness. POSCO Group plans to focus on steel and energy materials as its two core businesses and expand investment in research and development (R&D).

According to POSCO Holdings on the 28th, Chairman Jang presided over a group technology strategy meeting to secure super-gap technological competitiveness at the POSCO Center in Gangnam-gu, Seoul, the previous day. He stated, "The core of POSCO Group's competitiveness comes from the absolute superiority of technology." Chairman Jang added, "Let's overcome business challenges with super-gap technologies and leap forward as a top-tier materials company," and explained, "We must maximize effectiveness by applying artificial intelligence (AI) appropriately in offices and research."

Jang In-hwa, Chairman of POSCO Group, is presiding over the Group Technology Strategy Meeting held on the 27th at the POSCO Center in Gangnam-gu, Seoul. (Photo by POSCO Holdings)

The meeting was attended by key business company representatives including Chairman Jang, POSCO President Lee Hee-geun, POSCO Future M President Eom Ki-cheon, as well as group technology executives such as Lee Joo-tae, Head of Future Strategy Headquarters, Cheon Seong-rae, Head of Business Synergy Headquarters, and Kim Ki-soo, Director of the Future Technology Research Institute. This meeting is held twice a year to share technology strategies across fields and discuss methods for successful strategy execution.

In the steel sector, POSCO plans to advance production technologies for high value-added products and focus on developing products to capture future markets. In particular, it will concentrate on developing cost-saving technologies to reduce expenses. In the energy materials sector, POSCO aims to quickly stabilize the secondary battery material processes at recently completed and operational lithium plants in Salta Province, Argentina, and Gwangyang, Jeollanam-do, Korea. The strategy is to strengthen the technological foundation to overcome the chasm (temporary demand slowdown) by reducing costs, while accelerating the early commercialization of next-generation secondary battery materials such as solid-state battery materials.

Regarding the secondary battery materials business, including cathode and anode materials, Chairman Jang urged, "We must meticulously establish technology development and investment plans to increase process efficiency and reduce costs." Participants from POSCO Future M responded that they are steadily improving operational indicators and planning talent acquisition and investments through technology development cooperation with the Future Technology Research Institute.

Chairman Jang also mentioned establishing a 'Corporate R&D' system centered on POSCO Holdings. This system aims to strengthen the linkage between technology and business strategies throughout the entire process of research and development, production, and sales. Through this, they plan to advance the technology development system focusing on tasks with high effectiveness and growth potential.

POSCO Holdings has increased the ratio of R&D expenses to sales from 0.68% in 2022 to 0.79% in 2023 and 0.82% in 2024. This year, POSCO Holdings plans to use the cash secured from the non-core asset restructuring project as growth investment funds. POSCO Holdings also intends to hold another group technology strategy meeting in the second half of this year to review major achievements.

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