By Jane Han
Staff Reporter
POSCO, although privatized in 2000, is still represented as South Korea's symbol of national pride, as much of the once underdeveloped country's economic development was driven by steel-based industries.
Forty years since its founding, the world's fourth-largest steel maker continues to play the same role, with 75 percent of its annual production feeding local demand. The nation's auto and shipbuilding industries are examples of these steel-based success stories.
South Korean carmakers' annual production jumped 21-fold since 1975, while shipbuilders saw a 40-fold hike, according to the Korea Iron & Steel Association (KOSA), as it attributed much of these businesses' growth to domestic steel production.
The percentage that steel-based industries, including auto, construction and shipbuilding, take up in South Korea's overall industrial output rose from 21.1 percent in 1980 to 32.3 percent in 2003, said POSCO.
``The moderate growth demonstrates that steel is continuously used as a key material in various production that ultimately propels our national economy,'' said a company spokesman.
To meet rising demand, POSCO has been increasing its annual production amount every year. It churned out 30 million tons of steel last year, but in 2008 plans to up its production by another five million.
Aside from quantity, however, industry experts worldwide recognize POSCO for its cutting-edge technology, which was most recently proven through its next-generation steel-making FINEX plant built at its Pohang Steel Works in North Gyeongsang Province.
At the completion ceremony, former President Roh Moo-hyun said, ``POSCO allowed us to recognize our capabilities. It gave us confidence in our country's hidden potential,'' as he shared his hopes for another boom through the environmentally friendly procedure.
POSCO's new FINEX was the first procedure to replace the centuries-long blast furnace method ― responsible for 60 percent of all steel production in the world.
The FINEX technology is said to have pushed up Asia's third-largest steel maker's edge in the competitive market overseas, as the method garnered immediate attention globally upon its completion.
As the old process was unable to utilize iron ore fines and soft coal to produce molten iron, the world's steel industry has been making desperate efforts to develop a new way to churn out steel from iron or powder.
A number of the world's leading companies have made attempts to commercialize methods similar to FINEX, but have failed to do so.
Now that the steel giant has successfully operated the plant for nearly a year, it has plans to implement the eco-friendly method designed to meet strict environmental regulations in most if its new projects abroad.