Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
POSCO to partner with Saudi Arabian fund to build auto plant
By Park Jin-hai
POSCO, the world’s third-largest steelmaker, forged a strategic partnership with the Saudi Arabian Public Investment Fund (PIF) in the construction and automobile areas.
POSCO Chairman Kwon Oh-joon, who has been accompanying President Park Geun-hye’s Middle East entourage, met with the PIF secretary general Abdulrahman Almofadhi to sign an agreement on Wednesday.
Under the agreement, the Saudi Arabia’s sovereign wealth fund will invest $1 billion in POSCO E&C, a construction arm of the Korean steelmaker.
It will also consider making a joint venture with POSCO to cooperate in its project to manufacture cars in the Middle East country.
Earlier, sources from business circles and investment banks had that Daewoo International, a subsidiary of POSCO, concluded a contract with the PIF in February to establish a state-run carmaker.
“Both companies share the view that they need to prepare for the post-oil era, especially when the global energy market becomes increasingly vulnerable to outside factors,” said the company in the statement.
Daewoo International will invest $54 million in the new entity to hold a 15 percent stake.
The Korean trading firm is expected to become the third-largest shareholder, following the largest shareholder of the PIF and the second-largest of Saudi Arabia’s local company.
The state-owned car company to be constructed in Sudair will produce 150,000 cars.
The auto market in Saudi Arabia currently sells about 700,000 cars a year ― roughly half that of the Korean market.
If the new entity receives approval, Daewoo International plans to oversee the entire process of assembly production beginning with the planning stage, while POSCO E&C may participate in the actual building of the auto plant.
Daewoo International has previous experience with operating auto plants abroad and currently generates more than 1.2 trillion won ($1.13 billion) in overseas sales.