SEOUL, March 11 (Korea Bizwire) – South Korea’s steelmaking giant POSCO plans to cut its costs by 1 trillion won (US$838.1 million) this year as part of the ongoing efforts to enhance overall management efficiency, its head said Friday.
POSCO Chairman Kwon Oh-joon told investors at a shareholders’ meeting in Seoul that the steelmaker will save about 520 billion won this year, while its other affiliates plan to lower their costs by around 500 billion won.
Last year, the company and other affiliates saved around 500 billion won through diverse cost-cutting efforts, he added.
This is in line with a set of corporate reform measures unveiled by POSCO last July amid concerns over losses caused by the slowing global economy and intensifying competition.
POSCO posted 96 billion won in net loss on a consolidated basis in 2015, a turnaround from a net profit of 557 billion won a year earlier.’