Posco America relocates headquarters to Washington

Posco Center in Gangnam-gu, Seoul (Yonhap)

Posco America, a subsidiary of Poscho Holdings, will relocate its headquarters from Atlanta to the nation's capital, in a move to strengthen its relations with the federal government and US Congress, the group said Wednesday.

Posco America’s head Do Han-eui and other staff members will start to work at the new office in Washington from as early as this week. The group will also dispatch employees specializing in trade affairs from South Korea's office.

The company’s new office is located within a building owned by the Korea International Trade Association in Washington.

Posco Group expects the relocation of Posco America’s headquarters will help the group to better respond to the Inflation Reduction Act and policies involving critical minerals including lithium, nickel, cobalt, manganese, graphite and aluminum.

According to Posco Holdings, Posco America’s new headquarters will oversee businesses operated by Posco Future M and Posco International in both North and South America, particularly those involving secondary battery materials. The US office will also look for new opportunities to invest in mines for critical minerals.

Posco Group added that Posco America will help the group establish joint ventures with General Motors and Ford, the group's partners to whom Posco Group previously agreed to supply secondary battery materials.

Posco America's new office will also focus on expanding its communication channels with the federal government and US Congress to seek measures to lower trade barriers for Korea’s steel products.

Since 2018 during the Trump administration, Korea’s tariff-free steel exports to the US have been limited under Section 232 of the Trade Expansion Act. South Korea's steel exports to the US have been reduced to around 2 million metric tons since then.

Previously, Posco America’s main office was in Atlanta. In 2016, the company moved its headquarters from New Jersey to help its steel supplies for Hyundai Motor, which established a production base in the southern state of Georgia.

By Shim Woo-hyun(ws@heraldcorp.com)