What is POSCO building in Gwangyang, and how much will it cost?

POSCO is building an automotive steel plant at its integrated steel mill in Gwangyang. It will cost 480 billion won and is designed to make hot-dip galvanized steel for automotive outer panels.

When will POSCO finish the new automotive steel plant and what will its capacity be?

POSCO plans to complete the plant by 2028. The facility will have an annual production capacity of 450,000 tons.

Why is POSCO investing in a new hot-dip galvanized steel line?

POSCO said the investment is aimed at expanding its high-end steel products business and strengthening future competitiveness in a rapidly changing global steel ecosystem. POSCO President Lee Hee-geun said the new automotive facility would help the company compete on manufacturing costs and technological prowess.

POSCO to invest $359 mil. in automotive steel plant by 2028

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Summary

POSCO said Tuesday it will invest 480 billion won to build an automotive steel plant by 2028. The facility will be at its integrated steel mill in Gwangyang, 360 kilometers south of Seoul, and will produce 450,000 tons a year of hot-dip galvanized steel for automotive outer panels. The new line will be POSCO’s eighth continuous galvanizing line and lift total annual hot-dip galvanized steel capacity to 4.95 million tons.

Key Facts

The investment is worth 480 billion won, or $359 million, according to POSCO.
The plant is planned for completion by 2028.
The new facility will be POSCO’s eighth continuous galvanizing line at the Gwangyang integrated steel mill.
The seven existing continuous galvanizing lines have a combined annual output capacity of 4.5 million tons.
Hot-dip galvanized steel is coated with zinc to improve corrosion resistance and surface quality.

By Yonhap

Published Sep 8, 2026 3:04 pm KST

POSCO headqaurters in Seoul's Gangnam District / Korea Times file

Korean steelmaker POSCO said Tuesday it will invest 480 billion won ($359 million) to build an automotive steel plant as it seeks to expand its high-end steel products business.

The plant, which POSCO plans to complete by 2028, will have an annual production capacity of 450,000 tons of hot-dip galvanized steel for automotive outer panels, the company said in a press release.

The facility will be POSCO's eighth continuous galvanizing line (CGL) at its integrated steel mill in Gwangyang, 360 kilometers south of Seoul, adding to seven existing lines, it said.

"This is a strategic investment aimed at strengthening our future competitiveness amid a rapidly changing global steel ecosystem. The (new) automotive facility would help the company compete with its rivals in terms of manufacturing costs and technological prowess," POSCO President Lee Hee-geun said in the release.

The seven existing CGLs have a combined annual output capacity of 4.5 million tons. The new line will increase POSCO's total annual capacity for hot-dip galvanized steel to 4.95 million tons, the company said.

Hot-dip galvanized steel is coated with zinc to improve corrosion resistance and surface quality. It is mainly used for automotive body panels and home appliances.

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