POSCO chair calls for a unified effort to boost steel industry

POSCO Group Chairman Chang In-hwa

The chairman of the Korea Iron & Steel Association, who holds the same title at South Korean steelmaker POSCO Co., urged the government, the association, and companies to unite in response to the challenging steel industry as oversupply continues.

The association held an event on Monday to celebrate Iron Day, which commemorates the day the metal was first produced in a blast furnace at POSCO‘s Pohang Works on June 9th, 1973, and was first observed in 2000.

More than 200 industry representatives attended the ceremony, including Minister of Trade, Industry and Energy Ahn Duk-geun, Hyundai Steel Co. President Seo Kang-hyun, and KG Steel Co. Chairman Kwak Jae-Sun.

In his address, POSCO Group Chairman Chang In-hwa, who also serves as the chairman of the Korea Iron & Steel Association, noted that the Korean steel industry is facing significant headwinds due to a global shift to a low-carbon economy, ongoing trade uncertainties and increasing competition from neighboring countries.

In a separate announcement, POSCO, Hyundai Steel, the Industrial Bank of Korea, and the association signed an agreement to establish and finance a fund for small- to medium-sized steelmakers in honor of Iron Day.

The fund, designed to promote environmental, social, and corporate governance (ESG) and low-carbon initiatives among small and medium-sized steel companies, will increase by 50 billion won ($36.3 million) from the previous fund established in 2022, bringing the total to 200 billion won. By engaging steel scrap companies, the fund is expected to provide more support for the industry overall.