POSCO Kangpan "Considering Acquisition of 30% Stake in Myanmar MEHL" (Update)

Termination of Relations with MEHL Operated by Myanmar Military Junta

[Asia Economy Reporter Hwang Yoon-joo] POSCO has decided to end its joint venture relationship with Myanmar Economic Holdings Limited (MEHL), operated by the Myanmar military, and to continue its business in Myanmar by acquiring the 30% stake held by MEHL.

On the 16th, POSCO stated, "Due to issues raised regarding MEHL, we are terminating our joint venture relationship with MEHL," and added, "We are reviewing a plan for POSCO Steel Sheet to independently operate the business by acquiring MEHL's 30% stake."

POSCO Steel Sheet established a joint venture in Myanmar in 1993 with MEHL at a 7:3 equity ratio. Currently, POSCO has expressed its intention to acquire MEHL's stake to the Myanmar government, and it is known that the related matters have been reported to POSCO Chairman Choi Jeong-woo. The plan is to complete the acquisition within the first half of the year if possible. However, the acquisition process, including asset valuation, may be delayed.

POSCO explained, "Through operating the Myanmar corporation, we have produced high-quality steel roofing materials in Myanmar and supplied them locally, making significant efforts to improve the living environment of the Myanmar people, create local employment, and promote local industrialization and economic revitalization," and added, "We will continue to disclose ongoing matters transparently."

They continued, "We hope that our steel business in Myanmar will continue to contribute to improving Myanmar's living environment and economic revitalization. We also aim to further activate our contributions within Myanmar, such as scholarship donations, school support, and funding for infectious disease prevention, and to grow sustainably as a company loved by the Myanmar people."