POSCO Group Chairman Choi Jeong-woo announced on Friday that the company expects enhanced corporate value and balanced growth after transitioning to a holding company system. He emphasized that this transition is crucial for achieving balanced growth and increasing corporate value in a rapidly changing business environment, such as the shift towards a low-carbon, eco-friendly era, accelerating technological innovation, and strengthening ESG management.
Shareholders Approve the Conversion
At a general meeting of shareholders held at the POSCO Center in Seoul, 75.6% of the total shareholders participated in the vote, approving the conversion measure with an 89.2% approval rate. The holding company, POSCO Holdings, will launch on March 2, while the operating company, POSCO, will oversee the existing steel business as a subsidiary.
Responding to Revolutionary Environmental Changes
Choi highlighted that the future business environment will experience a “revolutionary change” unlike anything seen before. He said, “The POSCO board of directors has discussed in depth mid- to long-term business strategies to actively respond to revolutionary environmental changes and ways to sustain the company’s growth.” The chairman further added that they urgently need innovation in the management system to develop into a global business leader.
Gratitude and Commitment to Shareholders
After the shareholders approved the holding company transition, Choi expressed gratitude for their support and confidence in the future vision of the POSCO Group. He committed to doing their best to achieve sustainable growth and enhance shareholder value.
Focusing on Eco-Friendly Materials and New Growth Engines
With the conversion to a holding company, POSCO plans to reposition itself as a “manufacturer specializing in eco-friendly materials” through new growth businesses such as secondary batteries and hydrogen, in addition to its traditional steel business. The company is also expected to re-evaluate the group’s new growth engines following the transition to a holding company structure. They aim to more than triple their current value by 2030 by accelerating growth based on the holding company system.
Roles of POSCO Holdings and the Steel Business
POSCO Holdings will launch as a listed company, focusing on developing the group’s future portfolio, reorganizing the group’s businesses, creating synergy, and leading the overall ESG management of the group. The steel business, on the other hand, will be delisted, becoming a wholly-owned subsidiary of the holding company, and will be responsible for operating all businesses related to steel production and sales.
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