POSCO’s headquarters in Pohang, some 370 kilometers south of Seoul. (Yonhap)
SEOUL, Jan. 28 (Korea Bizwire) — Shareholders of POSCO, South Korea’s top steelmaker, said Friday that the company will create a holding company following the approval of its plan to transform into a holding company by splitting it into two business entities.
After the breakup, the steelmaking group’s holding company, tentatively named POSCO Holdings Inc., will focus on charting out future business, research and development, and investment.
The steelmaking business will be dubbed POSCO, which will be wholly owned by POSCO Holdings and remain unlisted.
The steelmaker’s affiliates, such as POSCO Chemical and POSCO Energy, will be under the wing of the holding firm.
POSCO’s plan came as its stock price has been in the doldrums despite its stellar business performance.
It logged its largest earnings ever last year on the back of strong demand for key products and high prices.
Its net income stood at 7.19 trillion won (US$5.96 billion) last year, compared with a net profit of 1.8 trillion won the previous year, and operating income came in at 9.24 trillion won last year on a consolidated basis, sharply rising from an operating profit of 2.4 trillion won a year earlier.
Sales amounted to 76.3 trillion won, up 32.1 percent from a year earlier.
But after touching a yearly high of 413,500 won in early May last year, shares in POSCO have been on a downturn, closing at 265,000 won Friday.
(Yonhap)
