Choi Jung-woo, Chairman of the Steel Association, Urges "Diversification of Supply Sources... Always Be Careful of Industrial Accidents"

Request for Government Support of Core Carbon Neutrality Technologies Including CCUS

Creation of 150 Billion KRW SME Win-Win Fund
"Loans Up to 2 Years, Interest Rate Reduced by 1.43%P"

Choi Jung-woo, Chairman of POSCO. (Photo by POSCO)

[Asia Economy Reporter Moon Chae-seok]

"Steel industry professionals must diversify their raw material and key component supply sources to efficiently respond to changes in the supply chain. Let us adopt a preparedness mindset and prioritize safety as the foremost core value in our management activities."

Choi Jung-woo, Chairman of POSCO and the Korea Iron & Steel Association, called for diversification of supply sources amid the deepening supply chain disruptions caused by the Russia-Ukraine conflict.

On the 9th, Chairman Choi attended the 23rd Steel Day commemorative event held at the POSCO Center in Gangnam-gu, Seoul, urging the steel industry to always exercise caution to prepare for industrial restructuring, carbon neutrality realization, and expanding supply chain risks, as well as to prevent major industrial accidents.

He stated, "With raw material prices soaring, more countries are redirecting a significant portion of their export volumes to domestic use to prepare for domestic supply shortages. Our steel industry, which has a high export ratio, is facing another challenge. We must diversify raw material and key component supply sources and contribute to strengthening the competitiveness of domestic demand industries through stable steel product supply," emphasizing the point.

He also stressed the need to thoroughly ensure 'industrial safety.' Considering the characteristics of the steel industry as a large-scale facility industry where a single accident can lead to a major disaster, it is essential to strengthen 'safety management.' Chairman Choi has experience attending the National Assembly Environment and Labor Committee’s industrial accident hearing held in February last year. With a firm belief that industrial accidents must be thoroughly prevented, he said, "The steel industry is a large-scale facility industry where accidents can easily escalate into major disasters, and the scope of management is extensive, which presents limitations. We should integrate smart technologies into existing safety activities to enhance AI-centered safety management and carry out various activities to establish a practical safety culture reflecting the characteristics of the steel industry."

He requested the government to strengthen support for core carbon neutrality technologies such as CCUS (Carbon Capture, Utilization, and Storage). Chairman Choi said, "We ask for the government’s active interest and support in the commercialization of core technology R&D and facility investment so that Korea’s unique carbon neutrality technology development can bring carbon neutrality to completion."

On the same day, POSCO signed a business agreement to establish a 150 billion KRW ‘Steel ESG (Environment, Social, Governance) Win-Win Fund’ together with Hyundai Steel, the Association, and IBK Industrial Bank. Small and medium-sized steel companies can receive loans of up to 2 billion KRW per company for up to two years through the fund. A preferential interest rate 1.43 percentage points lower than the market rate is applied, reducing interest costs by approximately 4.2 billion KRW over two years.

Meanwhile, about 150 people attended the event, including Chairman Choi, Jang Young-jin, 1st Vice Minister of the Ministry of Trade, Industry and Energy, Kim Hak-dong, Vice Chairman of POSCO, Ahn Dong-il, President of Hyundai Steel, Jang Se-wook, Vice Chairman of Dongkuk Steel, Kwak Jae-sun, Chairman of KG Steel, Lee Hwi-ryeong, Vice Chairman of SeAH Steel, Jo Seok-hee, Vice Chairman of TCC Steel, and other association chairpersons and Steel Day awardees.