POSCO Holdings
Overview
POSCO Holdings is the holding company of POSCO, a leading steel company in South Korea, established on March 2, 2022, through a spin-off. The former POSCO was split into 'POSCO' (new entity) responsible for steel operations and 'POSCO Holdings' as the holding company, which oversees the group's investments, governance structure, and new business development. Major business sectors include steel, secondary battery materials, new materials, infrastructure, and energy, with significant investments in secondary battery materials such as lithium, nickel, and cathode materials. As of 2024, the POSCO Group's total revenue is approximately 70 trillion KRW, and POSCO Holdings is accelerating its transformation into a global eco-friendly future materials company.
Main Content
Establishment Background and Governance Structure
POSCO Holdings was established on March 2, 2022, through a spin-off of the former POSCO. Before the split, POSCO operated both steel and new businesses simultaneously, facing issues of governance complexity and investment efficiency. The split allowed POSCO Holdings to manage the equity of group affiliates as a holding company, while POSCO (new) could focus on its core steel business. POSCO Holdings holds 100% of POSCO's equity and has major affiliates such as POSCO International, POSCO Future M (formerly POSCO Chemical), and POSCO E&C as subsidiaries. This governance structure aims to strengthen business-specific accountability and expedite decision-making for new business investments.
Major Business Sectors
POSCO Holdings' operations are broadly divided into four sectors.
1. Steel Sector – Handled by POSCO (new), it possesses world-class high-grade steel production capabilities. POSCO produces approximately 43 million tons of crude steel annually at its Gwangyang and Pohang steelworks, with strengths in high-value-added products such as automotive steel sheets, electrical steel sheets, and thick plates. Notably, its premium electrical steel sheets for electric vehicles hold the top global market share.
2. Secondary Battery Materials Sector – Centered on POSCO Future M, it produces cathode materials, anode materials, lithium, and nickel. POSCO Holdings plans to invest over 40 trillion KRW in the secondary battery materials business by 2030, aiming to expand lithium production capacity to 420,000 tons, nickel to 220,000 tons, and cathode materials to 610,000 tons. As of 2024, it is actively involved in overseas resource development, including POSCO Pilbara Lithium Solution (Australia) and POSCO Argentina (brine lithium).
3. New Materials Sector – POSCO Holdings is pursuing carbon-neutral steel production through hydrogen reduction steelmaking (HyREX) technology. It is also fostering recycling (waste battery recycling), hydrogen, and eco-friendly infrastructure businesses as new growth engines.
4. Infrastructure and Energy Sector – Includes POSCO E&C (construction and engineering), POSCO Energy (power generation and energy), and POSCO International (trading and resource development). This sector generates stable cash flow and provides financial resources for the group's new business investments.
Financial Status and Investment
As of 2024, on a consolidated basis, POSCO Holdings' revenue is estimated at approximately 70 trillion KRW, with an operating profit of about 4 trillion KRW. Performance has slightly declined compared to 2023 due to a downturn in the steel market and global economic slowdown, but growth in the secondary battery materials sector is offsetting this. POSCO Holdings executed approximately 10 trillion KRW in capital expenditures (CAPEX) in 2024, with over 60% allocated to secondary battery materials and eco-friendly businesses. The debt ratio remains stable at around 80%.
Global Competitiveness
POSCO Holdings ranks around 6th globally in steel production (as of 2024) and is considered top-tier in technology and profitability. It holds unrivaled technology in electrical steel sheets for electric vehicles and ultra-high-strength steel sheets for automobiles. In the secondary battery materials field, it competes with companies like China's CATL and LG Energy Solution, and has expanded into Australia, Argentina, and Indonesia to secure lithium and nickel resources.
Latest Trends
From 2024 to 2025, POSCO Holdings has shown the following major changes and trends.
1. Accelerated Expansion of Secondary Battery Materials Business – In December 2024, POSCO Holdings completed a nickel smelter in Indonesia and plans to begin full-scale operation of a cathode material plant in the first half of 2025. In January 2025, it announced expanded investments in North American cathode material production bases to respond to the U.S. Inflation Reduction Act (IRA).
2. Commercialization of Hydrogen Reduction Steelmaking – In February 2025, POSCO Holdings held a groundbreaking ceremony for a hydrogen reduction steelmaking demonstration plant at the Pohang steelworks. It aims to complete a demonstration facility with an annual capacity of 1 million tons by 2027 and achieve commercialization in the 2030s. This is a key project to respond to the global steel industry's carbon neutrality trend.
3. Governance Restructuring Discussions – In the second half of 2024, POSCO Holdings pursued a merger between POSCO International and POSCO Energy, but it was abandoned due to opposition from some shareholders. In 2025, additional restructuring plans to reorganize group businesses and strengthen the holding company system are under review.
4. Stock Price and Shareholder Return Policies – In 2024, POSCO Holdings' stock price fell over 30% due to a downturn in the secondary battery sector and weak steel market conditions. In response, in January 2025, POSCO Holdings announced a 1 trillion KRW share buyback and cancellation plan to enhance shareholder returns. It also raised the dividend payout ratio to 30%.
5. Strengthened ESG Management – In February 2025, POSCO Holdings updated its 2050 carbon neutrality roadmap, setting a target to reduce greenhouse gas emissions by 30% by 2030 compared to 2020 levels. It is also pursuing RE100 membership and has introduced an ESG evaluation system for partners.
Related Topics
- [[POSCO]]
- [[Secondary battery]]
- [[Steel industry]]
- [[Holding company]]
- [[Hydrogen reduction steelmaking]]
---
AI-generated document · Improved by the community