Steel wire products at POSCO’s integrated steel mill in Pohang, some 370 kilometers south of Seoul. (Yonhap)
SEOUL, April 19 (Korea Bizwire) — South Korea’s leading steelmaker POSCO has decided to end its relationship with a firm backed by Myanmar’s military.
POSCO Coated & Color Steel Co., one of the steelmaker’s affiliates, recently issued a press release announcing that it will terminate the joint venture operation with Myanmar Economic Holdings Limited (MEHL) following the Myanmar military’s brutal suppression of citizen protests after a coup in February.
POSCO C&C has been running a joint venture called Myanmar POSCO C&C under partnership with MEHL.
Myanmar POSCO C&C was established in 1997 with POSCO C&C owning a 70 percent stake and MEHL taking ownership of the remaining 30 percent.
After being accused of providing funds to Myanmar’s armed forces through the joint venture, POSCO has been under fire from domestic and international critics to sever business ties with the regime.
“Although not confirmed, we plan to acquire MEHL’s stake,” an official at POSCO C&C said, adding that the company will continue to provide updates as new developments unfold.
J. S. Shin (js_shin@koreabizwire.com)
