Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
POSCO to raise $36 mil. to invest in promising global startups
POSCO headquarters in Pohang, North Gyeongsang Province / Korea Times file
By Park Jae-hyuk
POSCO, the steelmaking unit of POSCO Group, announced Wednesday that it will create a 50 billion won ($36 million) fund in partnership with POSCO Investment, the group’s corporate venture capital (CVC) unit, to address paradigm shifts in the global steel industry and pursue new business opportunities.
The fund, called POSCO CVC No. 1, will launch Aug. 29 with 40 billion won invested by POSCO and 10 billion won from POSCO Investment.
CVC refers to venture capital established by nonfinancial companies. Through a CVC, a company can identify promising firms and cooperate with them, investing in startups related to its own business domains.
According to POSCO, the new fund will target startups developing technologies in digital transformation, energy efficiency, carbon reduction and renewable energy, aligning with the steelmaker’s strategies for future growth.
In particular, 20 percent of the fund will be allocated to investing in promising startups overseas, aiming to strengthen the company’s ties with global innovators.
“With this fund, we will expand cooperation with startups that have technologies supporting our strategies in artificial intelligence, energy transition and decarbonization,” a POSCO official said. “We plan to make aggressive investments to secure new growth engines for a sustainable future.”
POSCO will select startups for investment after thoroughly reviewing their technologies, financial health and relevance to its strategic goals. POSCO Investment will manage the fund, leveraging its in-depth knowledge of POSCO’s business operations.