Posco solidifies green vision as holding company

According to a recent corporate analysis report, Posco Group proudly topped the rankings in the growth rate of market capitalization among domestic corporates. The report found that such a high evaluation was made possible due to Posco’s continuous..

Posco Group Chairman Choi Jeong-woo makes a presentation at the Posco Global R&D Center in Songdo, Incheon, on Sept. 12. [POSCO GROUP]

According to a recent corporate analysis report, Posco Group proudly topped the rankings in the growth rate of market capitalization among domestic corporates. The report found that such a high evaluation was made possible due to Posco’s continuous devotion toward its future-oriented business reformation.

For the past 5 years, Posco has been making business transformations centered around business structure reformation and transitioning to a holding company to realize the corporate value in corporate citizenship.

Notably, since becoming a holding company last year, Posco has managed to shed its image as a company centered on steel making and has been focusing on cementing its role as a leading green future materials company and boosting its ESG management.

Posco Group has been concentrating on putting together its portfolio for future businesses and investing in R&D resources to create a synergetic effect with promising small- to mediumsized companies.

Seven business sectors, including steel, hydrogen, rechargeable battery materials, lithium/nickel, energy, construction/Infrastructure, and food(AgriBio) were selected as core businesses, while the establishment of a full-value chain in its rechargeable battery and hydrogen reduction steel manufacture business will receive proactive investments due to the significance of hydrogen technology in the future.

The merger of Posco International and Posco Energy is a part of the company’s efforts to take the lead in developing technologies, and the Future Technology Research Institute has been established under Posco Holdings to prepare a system for the company to discuss strategies and road maps in a timely manner.

In terms of capital markets, not only has the absolute value of market capitalization increased, but the proportion of eco-friendly, future materials business has also evidently increased.

Comparing the market capitalization from the end of 2018 to that on Oct. 18, it has increased by approximately 225 percent to 89.6 trillion won.

From a portfolio perspective, the transition to a holding company attests a new green trend, with Posco at 75 percent, Posco Chemical at 13 percent, Posco International at 8 percent, and Posco ICT at 3 percent in 2018, while in 2023, Posco Holdings is at 47 percent, Posco FutureM at 29 percent, Posco International at 13 percent and Posco DX at 9 percent.

Following Posco’s “2050 carbon neutral” declaration, a pledge made in 2020 to become carbon neutral by 2050, a first for an Asian steel company, the group has been continuing with its commitment for both the environment and industry.

Since 2021, Posco Group Chairman Choi Jeong-woo has held the HyIS Forum, the world’s first international forum for hydrogen reduction steel manufacturing, to lead the carbon neutral agenda and discuss the future of the eco-friendly steel industry on the international stage.

The company’s efforts to secure a complete value chain in rechargeable batteries have also been highly regarded in the capital market.

Starting with Salt Lake in Argentina to secure lithium, a core material for rechargeable battery production, the establishment of a stable supply chain of non-traditional materials in the North America region is underway.

Mostly, Posco Group is actively communicating with shareholders and various investors about the group’s growth strategy and competitiveness.

“Value Day” was newly established to deliver the vision and financial goals of core businesses such as steel, rechargeable battery materials, and energy in the form of storytelling, thereby enhancing the understanding of the market.

Posco Holdings has gained investor confidence by implementing an active shareholder return and stable return policy. In turn, the group is being reassessed as a dependable stock that meets both shareholder’s expectations through its future material business and stable dividend incomes based on its steel business.

BY KIM SU-HYEON [kim.suhyeon4@joongang.co.kr]