POSCO's Emergency Management After Factory Shutdown Due to Typhoon: "Save Even 1000 Won"

Vice Chairman Kim Hak-dong Appointed as TF Leader

[Asia Economy Reporter Choi Seoyoon] POSCO, which had its factory operations halted last year due to Typhoon Hin Nam No, has entered emergency management in its steel division.

On the 26th, POSCO announced that it formed an emergency management task force (TF) led by Vice Chairman Kim Hakdong and began operations from the previous day.

Vice Chairman Kim sent an email to employees stating, "This is a time when efforts to reduce costs even by 1,000 won and to purchase raw materials competitively even by 1 ton are desperately needed."

He added, "Although we successfully completed flood damage recovery in 135 days, the internal and external conditions are unpredictable," and said, "If the sluggish demand industry market continues, it could even threaten our company's survival."

Kim Hak-dong, Vice Chairman and CEO of POSCO. [Photo by POSCO]

POSCO Group declared a group-wide emergency management system last July to respond to the triple crisis of exchange rates, interest rates, and inflation. This year, it is interpreted that POSCO formed a separate TF within the company to focus on cost reduction, profitability enhancement, and liquidity securing in the steel sector.

According to the provisional results recently announced by POSCO Holdings, last year's consolidated sales exceeded 84 trillion won for the first time in history, but operating profit was halved (-46.7%) from the previous year to 4.9 trillion won due to the sluggish steel market and the impact of flooding at the Pohang Steelworks.

A POSCO official explained, "Although all factories resumed operations on the 20th, 135 days after the flooding caused by the overflow of the Naengcheon River in September last year, the worsening internal and external management conditions have led us to strengthen emergency management through the operation of the TF."