POSCO to End Remote Work from April... Transition to Face-to-Face Work System (Comprehensive)

All Employees Stationed in Seoul and Songdo Return to Office
Reflecting the Relaxed Social Distancing Atmosphere

In front of POSCO Center, Daechi-dong, Gangnam-gu, Seoul. (Image source=Yonhap News)

[Asia Economy reporters Oh Hyung-gil and Moon Chae-seok] POSCO will abruptly end remote work starting next month. Among the top 10 domestic conglomerates, POSCO is the first to stop remote work since the spread of COVID-19.

According to industry sources on the 31st, POSCO has confirmed that all employees working at the POSCO Center and POSCO Tower in Gangnam, Seoul, and the Songdo office in Incheon will switch to a full in-office work system. Since next month’s 1st is POSCO’s 54th anniversary, the change is expected to take effect from the 4th.

The suspension of remote work applies only to office workers. The Pohang and Gwangyang steel mill sites have not implemented remote work even after the COVID-19 outbreak. However, remote work will be maintained for pregnant employees, those with underlying health conditions, employees designated as government-mandated quarantine cases, and those awaiting test results.

Other affiliates within the group are implementing a mix of in-office and remote work depending on their company situation. Currently, employees of POSCO Energy, POSCO Terminal, POSCO Technology Investment, POSCO Management Research Institute, and POSCO ICT Seoul office work at the POSCO Center in Daechi-dong, Seoul. At the POSCO Tower in Gangnam, employees of N2B, M-Tech Seoul office, Altech, and O&M work, while O&M employees also work at Mugyo-ro in Jung-gu. Employees of Construction, Inter, E&C, Engineering, A&C, ICT, and the Global R&D Center (including the Talent Creation Institute) work at the Songdo office in Incheon.

POSCO Holdings, launched last month, is not conducting remote work due to its small workforce. In the case of POSCO Chemical, about one-third of the total employees are working remotely on a rotating basis.

POSCO’s decision to completely eliminate remote work is interpreted as reflecting the recent easing of social distancing guidelines, including demands from the Presidential Transition Committee to relax quarantine measures. The Central Disaster and Safety Countermeasures Headquarters (CDSCH) of the Ministry of Health and Welfare stated, "We are gathering opinions and discussing, including consultations with the Transition Committee," and added, "The final decision on social distancing adjustments will be made at the CDSCH meeting on the 1st of next month."

It is also understood that the move aims to improve work efficiency through face-to-face work. An industry insider said, "Following changes such as the transition to a holding company and organizational restructuring, it appears that the system has shifted from online to face-to-face work to enable employees to communicate with each other."

However, some express concerns about whether it is necessary to stop remote work before the CDSCH’s social distancing revision plan, given the very rapid transmission rate of the Omicron variant regardless of its fatality rate. Last November, POSCO opened 'With POSCO Work Station' satellite offices in Park One, Yeongdeungpo-gu, Seoul, and the Geumsegi Building in Jung-gu to allow employees in Gangnam, Seoul, and Songdo, Incheon, to work at these facilities.

A representative of the POSCO branch of the Korean Metal Workers' Union (KMWU) under the Korean Confederation of Trade Unions (KCTU) explained, "Workers at the Pohang and Gwangyang steel mill sites, which contribute a significant portion of the group’s sales, have been working full-time without remote work for almost two years, so this policy only applies to office workers in Seoul and Songdo."