Pohang City Takes Action to Overcome Steel Industry Crisis Through Cooperation With Local Companies

Mutual Growth with POSCO:
City Center Dormitory Project Bears Fruit
Urgent Need for Enactment of the K-Steel Act

Pohang City is taking proactive steps to overcome the steel industry crisis through mutual cooperation with local companies such as POSCO.

Amid challenges facing the domestic steel industry due to the global economic downturn, low-priced competition from China, and the strengthening of protectionist trade policies, the city is implementing various projects to revitalize the local economy and create jobs for young people.

In particular, the city is accelerating the construction and relocation of POSCO employee dormitories, a project that marks the beginning of a new phase in mutual cooperation with POSCO. This project, which will provide 800 rooms throughout the city, is linked to urban regeneration efforts and is expected to help address urban hollowing, revitalize local commercial districts, and stabilize housing for young workers.

Initially, POSCO had planned to rebuild its existing dormitory (Dongchon Living Hall) near its headquarters, but National Assemblyman Lee Sanghui (Pohang Nam-Ulleung) played a decisive role in coordinating opinions with POSCO by actively promoting the construction and relocation of the dormitory into the city center.

Additionally, Assemblyman Lee is contributing to the recovery of Pohang City and the local economy by sponsoring the "K-Steel Act" to strengthen the competitiveness of the regional steel industry and promote the transition to green steel technologies.

Mayor Lee Kangdeok emphasized, "Now is the time for local companies and lawmakers from both the ruling and opposition parties to work together to overcome the crisis facing the regional steel industry and to lay the foundation for future growth," adding, "I hope that this cooperative project with POSCO will serve as a stepping stone for shared growth with local businesses."

Pohang City, through close collaboration with POSCO Holdings, has been selected for the Ministry of Science and ICT's public project, the "Change Up Ground Regional Expansion Model Establishment Project." A total project budget of 27.7 billion won (9.9 billion won from the central government and 16.8 billion won from local government funds) will be invested to create spaces for startups and corporate innovation within the Pohang Free Economic Zone.

This project will be carried out over four years until 2028, and will establish an incubating center capable of accommodating 50 startups, supporting the growth of companies based on AI technology.

Pohang City Hall.