POSCO
South Korea’s flagship integrated steelmaker and a core operating company of POSCO Group, increasingly focused on low-carbon steelmaking and hydrogen-reduction technology.
Last updated November 4, 2026
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Overview
POSCO is South Korea’s flagship steel producer and the principal operating steel company within POSCO Group. Founded in 1968 as Pohang Iron and Steel Company, it was created through a South Korean industrial policy intended to establish domestic steelmaking capacity and supply the materials needed for national reconstruction, shipbuilding, machinery, automobiles, appliances and infrastructure. The company’s first integrated works was built at Pohang on Korea’s southeast coast, beginning construction in 1970 and producing its first steel in 1973. A second major integrated works was later developed at Gwangyang, allowing POSCO to become one of the world’s leading producers of flat steel and specialty products. The company’s historical importance extends beyond steel production. POSCO supplied relatively low-cost, high-quality materials to Korean downstream industries during the country’s rapid industrialization and helped create an industrial ecosystem around shipbuilding, automotive manufacturing, engineering, construction and electronics. Under founding president Park Tae-joon, the company emphasized operational discipline, technological self-reliance and workforce development. Park also supported the creation of Pohang University of Science and Technology, or POSTECH, reflecting POSCO’s long-standing connection with science, engineering and industrial research. POSCO expanded internationally through overseas processing centers, trading operations, joint ventures and production facilities. Its international portfolio has included operations and investments in China, Vietnam, Mexico, India, the United States and other markets. The company’s former USS-POSCO Industries joint venture in California was ultimately acquired outright by U.S. Steel in 2020. POSCO also pursued a large greenfield steel project in Odisha, India, announced in 2005, but the project encountered prolonged opposition, land-acquisition disputes, environmental concerns, regulatory delays and legal challenges. POSCO suspended the project in 2016 and exited it in March 2017. The company was privatized in stages during the 1990s, with full privatization completed in 2000. That transition introduced a more shareholder-oriented governance structure, professional management systems and greater international exposure. POSCO subsequently developed a broad product portfolio covering hot-rolled, cold-rolled, galvanized, electrical, stainless and heavy plate steel. Its products serve automotive manufacturers, shipbuilders, construction companies, appliance producers, energy companies, machinery makers and general industrial customers. In 2022, POSCO Group reorganized into a holding-company structure centered on POSCO Holdings. POSCO remained the group’s core steel operating company, while POSCO Holdings coordinated the broader portfolio, including steel, secondary-battery materials, resources, energy, trading, engineering and infrastructure businesses. The reorganization clarified the distinction between the POSCO steel company and the listed holding company whose American Depositary Receipts trade under the symbol PKX. POSCO’s present strategy is shaped by the decarbonization challenge facing the steel industry. The company continues to operate integrated blast-furnace works at Pohang and Gwangyang, but it is also investing in electric-arc-furnace capacity, scrap-based production, lower-carbon fuels, carbon-reduction technologies and hydrogen-based ironmaking. Its proprietary HyREX process is designed to use hydrogen in a fluidized-bed reduction route and to combine direct-reduced iron with electric melting. POSCO opened a Hydrogen Reduction Ironmaking Development Center in 2024 and has targeted a large-scale test facility during the second half of the 2020s, with broader commercial validation planned around 2030. The company’s long-term roadmap aims to transition toward carbon-neutral steel production by 2050. POSCO therefore occupies two positions at once: it is…
History
POSCO was established on April 1, 1968, during a period when South Korea regarded domestic steelmaking as essential to economic independence and industrial development. The company was originally named Pohang Iron and Steel Company and was created with government backing and participation from Korea Tungsten. Retired army general Park Tae-joon became its founding leader. Korea lacked an established modern steel industry, substantial domestic capital and a large pool of specialized steelmaking talent, so the project relied on state planning, overseas financing and technical cooperation, including support associated with Japan’s post-normalization economic relationship with South Korea. Construction of the Pohang works began on April 1, 1970. The first integrated facility was dedicated in July 1973, initially providing approximately 1.03 million tonnes of annual capacity. POSCO initially concentrated on supplying Korean manufacturers, including shipbuilders, machinery companies and construction businesses. The state supported the steelmaker through the Korea Development Bank and the National Investment Fund, treating steel as one of several strategic industries that could lower input costs and accelerate industrialization. POSCO’s development became closely linked to the expansion of Korea’s downstream manufacturing base. During the 1970s and 1980s, POSCO expanded the Pohang works through successive construction phases and developed the Gwangyang steelworks on Korea’s southern coast. Gwangyang became a major integrated production center and helped transform POSCO into one of the world’s most productive and internationally recognized steelmakers. By the late 1980s, the company ranked among the largest steel producers outside the communist world. Park Tae-joon also invested in education and research. POSCO helped establish POSTECH in 1986 as a science and technology research university intended to develop the engineers and researchers required by a technologically ambitious industrial economy. A leadership transition began in the early 1990s. Park Tae-joon resigned in 1993 after more than two decades of dominant influence. The company subsequently introduced more decentralized management, greater autonomy for business units and a less rigid organizational structure. In 1994, POSCO created POSTEEL as a domestic sales and service subsidiary and POSTRADE as an international trading arm. These changes reflected an effort to separate production from commercial functions and prepare the company for a more global and market-oriented environment. The privatization process accelerated after the Asian financial crisis. South Korea initially debated whether POSCO should remain a government investment enterprise, but the Kim Dae-jung administration treated privatization as a major economic-policy objective. Government ownership was reduced during the late 1990s, foreign ownership increased and full privatization was completed in 2000. Under chairman Lee Ku-taek, POSCO adopted governance and performance systems more closely aligned with global public-company standards. The company benefited from strong steel demand in Korea and China and recorded particularly strong profitability during the mid-2000s. International expansion became a central part of POSCO’s strategy. The company established or invested in overseas processing centers and pursued production projects in China, Vietnam, Mexico, India and the United States. In China, POSCO developed stainless and coated-steel operations to serve automotive and appliance customers. Its California joint venture with U.S. Steel, USS-POSCO Industries, was eventually acquired fully by U.S. Steel in February 2020. POSCO also pursued the proposed Odisha project in India, announced in 2005 as a major integrated steel complex. The project faced sustained opposition from affected communities, disputes over land and forest rights, environmental concerns, regulatory uncertainty and legal intervention. POSCO suspended the project in 2016 and formally withdrew in March 2017. The company’s history also includes significant governance, legal and reputational challenges. Nippon Steel sued POSCO in 2012 over alleged misuse of proprietary grain-oriented electrical-steel technology, claiming that former employees had been recruited to obtain confidential know-how. The parties settled in 2015, with POSCO agreeing to pay 30 billion yen. POSCO’s continued operations in Russia after the 2022 invasion of Ukraine also attracted criticism from observers who believed the company should have withdrawn from the market. In 2022, POSCO Group reorganized into a holding-company structure. POSCO Holdings became the listed parent, while POSCO continued as the group’s steel operating company. This structure allowed the group to coordinate steel with secondary-battery materials, energy, resources, trading, engineering and infrastructure businesses. POSCO’s steel operations remained centered on the Pohang and Gwangyang integrated works, supported by overseas sales, processing and customer-service networks. Since the 2020s, the central strategic issue has been decarbonization. POSCO has developed HyREX, a hydrogen-reduction ironmaking process based on fluidized-bed reduction and electric melting. It opened a dedicated development center in 2024 and has pursued a demonstration facility intended to test the commercial viability of hydrogen-based ironmaking. In parallel, it has invested in electric-arc-furnace production, scrap utilization, lower-carbon raw materials, hydrogen injection, carbon capture and low-carbon steel products. A large electric arc furnace at Gwangyang was completed in 2026. POSCO’s long-term objective is to reduce dependence on coal-based blast furnaces and move toward carbon-neutral steel production by 2050 while retaining its position as a supplier of advanced steel to automotive, shipbuilding, construction, energy and industrial customers.
- 2026
Gwangyang electric arc furnace completed
[7]POSCO announced completion of a large electric arc furnace at Gwangyang to support lower-carbon steel production before wider HyREX commercialization.
- 2025
Lee Hee-geun became POSCO president
[1]Lee Hee-geun took office as president of POSCO on January 3, 2025.
- 2024
HyREX development center opened
[5]POSCO opened a development center at Pohang to integrate research, engineering and test-facility work for hydrogen-reduction ironmaking.
- 2022
POSCO Group adopted a holding-company structure
[3]POSCO Holdings became the group’s listed parent while POSCO remained the core steel operating subsidiary.
- 2020
USS-POSCO Industries became wholly owned by U.S. Steel
[8]U.S. Steel acquired full ownership of the California joint venture previously operated with POSCO.
- 2017
POSCO exited the Odisha project
[9]POSCO formally withdrew from its proposed integrated steel project in Odisha, India, after prolonged opposition and regulatory delays.
- 2015
Nippon Steel technology dispute settled
[8]POSCO and Nippon Steel resolved litigation over alleged misuse of electrical-steel technology through a settlement involving a 30 billion yen payment.
- 2006
Zhangjiagang stainless-steel operations expanded
[8]POSCO began operating an integrated stainless-steel facility in Jiangsu, China, serving regional automotive and appliance markets.
- 2000
Full privatization completed
[8]The South Korean government completed POSCO’s privatization after reducing its ownership during the late 1990s.
- 1994
POSTEEL and POSTRADE established
[8]POSCO created separate domestic sales and international trading subsidiaries as part of its organizational restructuring.
Products and positioning
A globally competitive integrated steelmaker positioned around advanced materials, customer-specific steel solutions and the transition from carbon-intensive blast-furnace production toward electric-arc and hydrogen-based ironmaking.
Flat steel
Hot-rolled steel
Hot-rolled products are produced by rolling slabs at high temperatures. POSCO supplies hot-rolled sheet and plate for construction, machinery, pipes, automotive components, shipbuilding and general industrial applications. The product family includes grades designed for strength, formability, weldability and corrosion resistance.
Flat steel
Cold-rolled steel
Cold-rolled steel is processed after hot rolling to achieve tighter dimensional tolerances, improved surface quality and controlled mechanical properties. It is used in automotive bodies and parts, appliances, electronics, furniture, construction products and other applications where appearance and precision are important.
Coated steel
Galvanized and coated steel
POSCO produces zinc-coated and other coated sheet products that provide improved resistance to corrosion. These steels are widely used in automotive body panels, roofing, appliances, building systems and industrial equipment. POSCO has developed product families tailored to forming, paintability, weldability and high-strength requirements.
Specialty steel
Electrical steel
Electrical steel is engineered for magnetic performance and low energy loss. POSCO supplies non-oriented electrical steel for motors and generators and grain-oriented electrical steel for transformers and power equipment. These products are important to electric vehicles, renewable-energy systems, grid infrastructure and energy-efficient appliances.
Specialty steel
Stainless steel
POSCO’s stainless-steel products are designed for corrosion resistance, durability and appearance. They serve kitchen and household equipment, architecture, transportation, chemical processing, energy, food processing and industrial machinery. The company has historically supported stainless production through Korean and overseas operations.
Plate steel
Heavy plate
Heavy plate is supplied in thick sections for demanding structural and fabrication applications. POSCO serves shipbuilding, offshore structures, bridges, buildings, pressure vessels, energy infrastructure and heavy machinery with grades selected for strength, toughness, weldability and resistance to harsh environments.
Ironmaking technology
HyREX
HyREX is POSCO’s proprietary hydrogen-reduction ironmaking concept. It uses hydrogen-based reduction in a fluidized-bed process to produce direct-reduced iron, followed by electric melting. POSCO is developing test and demonstration facilities with the aim of validating commercial-scale low-carbon ironmaking and eventually replacing portions of conventional coal-based production.
Ironmaking technology · 2007
FINEX
FINEX is POSCO’s fluidized-bed ironmaking process, developed to use fine iron ore without the same agglomeration route required by conventional blast-furnace systems. The technology has served as an important technical foundation for POSCO’s later HyREX hydrogen-reduction program.
Controversies
2022
Criticism over continued Russian operations
POSCO’s continued presence in Russia after the invasion of Ukraine drew criticism from observers who argued that the company’s operations conflicted with efforts to economically isolate Russia.
2022
Opposition to POSCO’s Seoul holding-company plan
POSCO faced opposition to its plan to establish its holding company in Seoul. Presidential candidates and Pohang residents opposed the plan. Pohang’s city government organized a task force and began a protest campaign; according to the article, more than 64,000 residents signed a petition within two days of the campaign’s start.
2021
POSCO chairman apologizes over fatal accidents
POSCO Chairman Choi Jeong-woo apologized to the bereaved family and the public over a series of fatal accidents at POSCO mills and plants. He said POSCO would cooperate with the government investigation and explore ways to strengthen workplace safety.
2020
South Korea FTC fines logistics firms over POSCO contract collusion
South Korea's Fair Trade Commission imposed a combined 46.04 billion won in fines on seven logistics firms, including CJ Logistics, for colluding on logistics contracts assigned by POSCO from 2001 to 2018. The FTC said the firms selected winning bidders before bidding began; CJ Logistics was fined 9.46 billion won.
2012
Nippon Steel electrical-steel technology dispute
Nippon Steel alleged that POSCO improperly acquired confidential technology for grain-oriented electrical steel sheets, including through former employees. The litigation was settled in 2015, with POSCO agreeing to pay 30 billion yen.
2005
Odisha land, environmental and community controversy
POSCO’s proposed large integrated steel project in Odisha generated sustained opposition concerning land acquisition, forest rights, displacement, environmental effects, mineral access and regulatory clearances. The company suspended the project in 2016 and exited India’s Odisha project in 2017.
Marketing campaigns
- 2024HyREX carbon-neutral steelmaking program
South Korea · Global
POSCO expanded dedicated research, engineering and demonstration work for HyREX while pairing the long-term hydrogen route with electric furnaces and other transitional carbon-reduction technologies.
Outcome. The program established a formal development center and a staged pathway toward demonstration and possible commercial deployment.
- 2022HyIS hydrogen iron and steelmaking forum
Global
POSCO promoted international collaboration and discussion around hydrogen-reduction steelmaking through the Hydrogen Iron and Steelmaking Forum.
Outcome. The forum supported POSCO’s positioning as a developer of hydrogen-based steelmaking technology and a participant in global industrial decarbonization efforts.
- 1986POSTECH science and technology education initiative
South Korea
POSCO founder Park Tae-joon supported the establishment of POSTECH as a research-focused university intended to develop scientific and engineering talent for Korea’s industrial economy.
Outcome. POSTECH became a major Korean science and technology university and an enduring part of POSCO’s education and research legacy.
Brand decisions
2026
Gwangyang electric arc furnace completionProduct launchBackground
POSCO is using electric-arc-furnace capacity and greater scrap utilization as transitional measures before broader adoption of hydrogen-based ironmaking.
Action taken
POSCO completed a large electric arc furnace at Gwangyang and positioned it as a platform for lower-carbon steel products and advanced grades.
Aftermath
The facility is expected to support emissions reduction, customer demand for lower-carbon steel and the company’s longer-term HyREX transition.
2024
HyREX development center and decarbonization roadmapStrategyBackground
Steelmakers face pressure to reduce emissions while maintaining production scale and product quality. POSCO’s long-term roadmap combines near-term efficiency and electric-furnace measures with hydrogen-based ironmaking.
Action taken
POSCO opened a HyREX development center, reorganized carbon-neutral resources and continued work on electric-arc-furnace and hydrogen-reduction technologies.
Aftermath
The company established a staged pathway toward a 300,000-tonne-class test facility and longer-term commercial validation of hydrogen reduction.
2022
Holding-company reorganizationStrategyBackground
POSCO Group sought to separate governance of its steel business from growth businesses such as secondary-battery materials, resources and energy.
Action taken
POSCO Holdings became the listed parent and POSCO continued as the group’s steel operating company.
Aftermath
The new structure clarified the distinction between POSCO’s steel operations and the diversified group portfolio. The NYSE ADR ticker PKX is associated with POSCO Holdings rather than the unlisted POSCO operating subsidiary.
2012
Settlement of Nippon Steel technology litigationOtherBackground
Nippon Steel accused POSCO of misappropriating technology used in grain-oriented electrical steel production.
Action taken
POSCO and Nippon Steel settled the dispute in 2015, including a payment by POSCO of 30 billion yen.
Aftermath
The settlement ended the litigation and the companies subsequently maintained business relations, although the case remained a significant intellectual-property controversy.
Settlement payment. 30 billion yen (2015 settlement)
- Nippon Steel — Nippon Steel pursued the lawsuit and later settled the dispute with POSCO.
2005
Odisha integrated steel projectStrategyBackground
POSCO sought overseas growth and signed an agreement with the Odisha government for a large greenfield steel complex, captive infrastructure and associated raw-material access.
Action taken
POSCO planned a multibillion-dollar integrated steel project, but land acquisition, community opposition, environmental disputes and regulatory delays prevented implementation.
Aftermath
The project was suspended in 2016 and POSCO exited it in March 2017.
2000
Complete privatizationStrategyBackground
South Korea pursued privatization of major state-linked enterprises after the Asian financial crisis and reduced its ownership in POSCO during the late 1990s.
Action taken
The government completed POSCO’s privatization in 2000 and the company adopted more shareholder-oriented governance and professional management systems.
Aftermath
POSCO expanded its international investor base and operated with greater managerial autonomy while remaining strategically important to South Korea’s industrial economy.
Recent events
- Unconfirmed
Reported
Opposition to POSCO’s Seoul holding-company plan[14]
Presidential candidates and Pohang residents opposed POSCO’s plan to establish its holding company in Seoul. Pohang’s city government organized a task force and began a protest campaign; the article reports that more than 64,000 residents signed a petition within two days.
Reported
POSCO retires its first blast furnace[16]
POSCO held a retirement ceremony for its first blast furnace after more than 48 years of operation. The company plans to turn the furnace into a museum.
Reported
GM and POSCO announce plan for North American battery materials joint venture[17]
General Motors said it plans to form a joint venture with POSCO to build a battery cathode materials plant in North America by 2024.
Reported
POSCO receives KOGAS quality certification for 9 percent nickel steel[18]
POSCO received quality certification from Korea Gas Corp. for its 9 percent nickel steel used in LNG storage tanks.
- Unconfirmed
Reported
Posco and Doosan agree to develop ammonia-derived hydrogen technology[19]
Posco and Doosan Heavy Industries & Construction agreed to jointly develop ammonia hydrogen extraction technology and gas turbines that use hydrogen as fuel. Posco will produce and supply ammonia and develop the cracker; Doosan will develop and produce the gas combustion burner and hydrogen-powered gas turbine.
- Unconfirmed
Reported
Ravensthorpe to supply nickel to POSCO[20]
Under the deal, Ravensthorpe is to supply POSCO with 7,500 tons of mixed hydroxide precipitate nickel annually starting in 2024; First Quantum said the deal was expected to close in the third quarter of 2021.
Reported
POSCO acquires 30% stake in Ravensthorpe[20]
POSCO acquired a 30% stake in the Ravensthorpe nickel mining business for $240 million.
Reported
First Quantum announces sale of 30% Ravensthorpe stake to POSCO[21]
First Quantum Minerals announced a binding agreement to sell POSCO a 30% equity interest in its Ravensthorpe Nickel Operation in Western Australia for $240 million. The transaction remains subject to conditions, including Australian Foreign Investment Review Board approval, and was expected to close in the third quarter of 2021.
Reported
First Quantum and POSCO agree to explore battery-materials partnership[21]
First Quantum and POSCO entered into a memorandum of understanding to explore a partnership to produce battery cathode precursor materials using mixed nickel-cobalt hydroxide precipitate from Ravensthorpe. They said they would work together over the coming months to advance the potential partnership.
Reported
LG Electronics partners on renewable energy technology[22]
LG Electronics said it partnered with Korea Water Resources Corporation and POSCO to develop renewable energy technology, including seawater heating and cooling systems and building-integrated photovoltaic solutions.
Sources26 sources
- 1POSCO official company historyposco.com
- 2POSCO official CEO messageposco.co.kr
- 3POSCO Group history and corporate structureposco-inc.co.kr
- 4POSCO official products and company informationposco.co.kr
- 5POSCO HyREX development center announcementnewsroom.posco.com
- 6POSCO decarbonization and climate strategysustainability.posco.co.kr
- 7POSCO Gwangyang electric arc furnace announcementposco.co.kr
- 8POSCO Wikipedia articleen.wikipedia.org
- 9POSCO India Wikipedia articleen.wikipedia.org
- 10POSCO incorporatednewsroom.posco.com
- 11Construction of Pohang Works begannewsroom.posco.com
- 12HyIS hydrogen iron and steelmaking forumposco.co.kr
- 13South Korea FTC fines logistics firms over POSCO contract collusionkoreatimes.co.kr
- 14Opposition to POSCO’s Seoul holding-company plankoreatimes.co.kr
- 15POSCO chairman apologizes over fatal accidentskoreatimes.co.kr
- 16POSCO退役首座高炉koreatimes.co.kr
- 17通用汽车与POSCO宣布计划在北美成立电池材料合资企业mining.com
- 18POSCO 的 9% 镍钢获 KOGAS 品质认证koreatimes.co.kr
- 19Posco与Doosan合作开发氨制氢技术econotimes.com
- 20Ravensthorpe将向POSCO供应镍产品econotimes.com
- 21First Quantum宣布向POSCO出售Ravensthorpe 30%股权finanznachrichten.de
- 22LG电子合作开发可再生能源技术koreaherald.com
- 23POSCO收购Black Rock Mining股份kedglobal.com
- 24POSCO获得Steelie可持续发展奖koreatimes.co.kr
- 25POSCO向印度尼西亚捐赠新冠防护设备thejakartapost.com
- 26Posco获Steelie创新奖koreaherald.com
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