Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
POSCO Holdings stands at forefront of boosting shareholder value
POSCO Group Chairman Chang In-hwa speaks during the firm's shareholders' meeting in Seoul, March 20. Courtesy of POSCO Group
By Lee Min-hyung
POSCO Holdings is committed to enhancing shareholder value under its new corporate vision, “Materials for a better future, innovation for world-class excellence,” the company said Wednesday.
The company is consolidating group-wide efforts to restructure its business portfolio, focusing on steel and energy materials to establish a sustainable growth framework for the long term.
The holding firm of the nation's leading steelmaker is exploring fresh investment opportunities both domestically and internationally to ensure profitable growth.
The company is also seeking to generate tangible outcomes in carbon reduction and cost efficiency by upgrading and optimizing manufacturing facilities. It is constructing a 2.5 million ton electric arc furnace at its steel mill in Gwangyang, South Jeolla Province.
In the energy materials sector, the company identifies the ongoing industrial downturn as an opportunity to acquire high-quality resources and is considering investment in lithium brine and mines to strengthen its raw material supply chain.
The company has already begun operations for the first phase of its lithium brine project in Argentina. It also operates recycling and silicon anode production facilities domestically to stabilize its revenue structure in the energy materials sector.
POSCO Holdings has completed a total of 106 restructuring projects and secured some 2.1 trillion won ($1.43 billion) in cash. The fund will be used to enhance its asset efficiency and find its next growth areas.
To boost shareholder value, the company used 100 billion won from its fund for stock repurchases and cancellations. In July 2023, POSCO Holdings announced its plan to retire 6 percent of its outstanding shares over three years starting in 2024.
“POSCO Holdings remains committed to expanding shareholder returns even amid a challenging business environment and sluggish market cycle, and recently confirmed a dividend payout of 10,000 won per share in line with our midterm dividend policy,” an official from the company said.