Gwangyang City Issues Statement Urging Win-Win Cooperation with POSCO

‘Posco Future M’ Should Relocate to Gwangyang

Gwangyang City in Jeollanam-do issued a statement urging the relocation of POSCO Future M to Gwangyang in response to POSCO Holdings' decision on March 17 to move its headquarters to Pohang and the announcement on March 20 to merge 15 maintenance partner companies at the Gwangyang Steelworks into three.

Gwangyang City stated that if POSCO Holdings moves to Pohang, three key POSCO institutions, including the POSCO headquarters and POSCO Future M (formerly POSCO Chemical), will be located in Pohang. This move hurts the pride of Gwangyang citizens who have actively cooperated and endured inconveniences during the growth of the world's largest steelworks, causing feelings of alienation and deprivation.

Panoramic view of Gwangyang Steelworks Photo by Gwangyang Steelworks

The city also emphasized that "to restore citizens' self-esteem and achieve balanced regional development, the relocation of POSCO Future M to Gwangyang, which has been a main agenda item discussed at the 'Gwangyang Regional Win-Win Cooperation Council' for the past year, must be promptly implemented."

Furthermore, regarding the merger of 15 maintenance partner companies at the Gwangyang Steelworks into three, the city expressed concerns that "local small and medium-sized suppliers, who have been responsible for delivering various materials, tools, and services, may be displaced in favor of deliveries through 'N2B,' a POSCO affiliate." The city demanded that "the current supply environment be fully maintained and that employment be guaranteed to prevent job losses during the merger process."

Reporter Seonsik Heo, Honam Coverage Headquarters, Asia Economy hss79@asiae.co.kr