SEOUL, Dec. 10 (Korea Bizwire) — POSCO, the world’s fifth-largest steelmaker by output, said Friday its board of directors has decided to turn it into a holding company.
Starting March 1, 2022, POSCO will be separated into two entities, a holding company tentatively named POSCO Holdings Inc. and its wholly-owned steelmaker tentatively named POSCO, the company said in a regulatory filing.
The proposed holding company will be listed on the local main stock market, with its wholly-owned steelmaker unlisted.
The envisioned holding company will create the future business portfolio of POSCO Group, the country’s sixth largest conglomerate, and manage the group’s businesses, the steelmaker said.
The decision is subject to approval at a shareholders’ meeting on Jan. 28.
The steelmaker’s third-quarter net profit reached 2.63 trillion won (US$2.23 billion), more than five-fold from a profit of 510 billion won a year earlier, on robust demand amid the global economic recovery from the COVID-19 pandemic.
Operating income also more than quadrupled to a record high of 3.12 trillion won, and sales rose 44.7 percent on-year to reach 20.64 trillion won.