The press and event participants watching a demonstration at POSCO’s Global R&D Center

The 2017 All New Chevrolet Cruze

GM Korea released its 2017 All New Chevy Cruze earlier this year, which is composed of 74.6 percent High Strength Steel (HSS) and Advanced High Strength Steel (AHSS), including POSCO GIGA STEEL. The All New Cruze is 77 kilograms lighter than last year’s model. So far, this year’s model has been a success with 2,147 units sold in the first month of its release.

The 2017 All New Chevy Cruze

Last year’s All New Malibu used POSCO’s HSS and AHSS for the entire body of the car and received the highest safety rating in the New Car Assessment Program conducted by the National Highway Traffic Safety Administration in the U.S. There is a more advanced version of HSS and AHSS from POSCO in the 2017 All New Chevy Cruze than in the Malibu, ensuring an even safer vehicle.

More than 20 percent of the HSS and AHSS used in the All New Chevy Cruze is POSCO GIGA STEEL. It has a tensile strength of 1 GPa or more, plus 3 to 5 times more strength than mild steel. A 10×15 cm piece of POSCO GIGA STEEL can withstand the weight of 1,500 cars weighing one ton each. In addition, it is 3.5 times and 2.1 times cheaper than aluminum in terms of material cost and processing costs, respectively. With POSCO GIGA STEEL, vehicles can also achieve a 10 percent decrease in CO2 emissions.

More Than Just a Steel Supplier

GM Korea and POSCO executives at the POSCO Global R&D Center

POSCO GIGA STEEL is a major breakthrough solution for vehicles as it is high in strength, easy to process, lightweight, eco-friendly and cost effective. POSCO hopes to provide such solutions in other areas as well, namely electric cars. Currently, researchers are working on an electrical steel sheet that can minimize the power loss of motors as well as new technology to protect car batteries. In doing so, POSCO will continue to collaborate closely with manufacturers early on in their product development and deliver the most innovative solutions to meet their needs.

*Images courtesy of GM Korea

The training program has been carried out by POSCO since 1997, keeping pace with the growth of overseas projects, and aims to imbue a sense of unity and loyalty among POSCO employees. Participants of the program are among the very best employees from each overseas subsidiary.

As of last year, 2,350 staff members from 59 overseas subsidiaries in 22 countries have completed the training program, which has consisted of 76 sessions over a period of almost 20 years.

This year, POSCO emphasized the history of the organization, as well as its entrepreneurial spirit by utilizing newly developed “POSCO’s Entrepreneurial Spirit” and “Sense of Ownership” courses, as well as POSCO GTaLK (POSCO Global Teaching and Learning Kit), POSCO’s unique global standard educational material.

The Best Employee Program commenced with an orientation ceremony and welcoming luncheon. Participants then learned about the history and value of POSCO through lectures and activities, including “POSCO in KOREA,” a new addition to the program which aims to instill a high level of corporate pride in participants.

“POSCO in KOREA” lets employees experience the fruits of POSCO’s labor, as well as the results of its solution marketing first-hand by visiting its landmarks and areas such as Pohang, Incheon and Songdo, where POSCO has left its mark.

Staff members were particularly impressed with POSCO’s efforts for regional development after witnessing the sheer size of Pohang Steelworks, and visiting the Pohang Steelers stadium along with POSTECH.

In Songdo, Incheon, participants were able to expand their knowledge of group companies by visiting POSCO Daewoo and the offices of POSCO E&C. In Seoul, they had time to experience the excellence of POSCO products, which are being utilized in the world-class products and facilities of Samsung Electronics and Lotte World Tower.

“Upon seeing how extensive POSCO’s contributions have been to Korea’s development, we have pledged to become members of POSCO who lead the development of our own respective countries,” noted a program participant.

Starting with this first training session of 2016, POSCO Group University plans to invite approximately 180 employees from overseas subsidiaries over six sessions by October of this year.

Meanwhile, POSCO Group University continues to systematically foster leadership by operating the Leaders’ and Directors’ Course for local staff in overseas subsidiaries.

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On March 21, POSCO DAEWOO (President Youngsang Kim) celebrated the launch of its new name and new corporate identity (CI) at Songdo ConvensiA Convention Center in Incheon, along with more than 1,000 employees.

Prior to the change, the company had been known as Daewoo International, since being incorporated by POSCO Group in 2010.

Presidents from POSCO Group affiliates—including POSCO E&C, POSCO Energy and POSCO ICT— attended the ceremonies, along with POSCO CEO Ohjoon Kwon and Incheon Mayor Jeongbok Yoo. The national bobsleigh & skeleton team delivered congratulatory messages on video for POSCO DAEWOO’s historic first step. The event kicked off with the unveiling of the new corporate identity, followed by the presentation of the company flag, badges and employee cards.

On March 21, POSCO DAEWOO celebrated its new company name and corporate identity, and resolved to devote all its strength to enhancing synergy with POSCO Group’s overseas businesses. Youngsang Kim, President of POSCO DAEWOO, waved the new company flag presented by POSCO CEO Ohjoon Kwon.

POSCO DAEWOO vows to enhance the POSCO Group’s value

The new CI of POSCO DAEWOO (pictured on the left) displays the company’s determination to lead in the globalization of POSCO Group by combining the POSCO brand, which symbolizes trust and innovation, with the Daewoo brand, which stands for the idea of “creative challenge.”

“POSCO DAEWOO’s new start is significant in that the unique advantages that POSCO and POSCO DAEWOO have obtained over the last half-century will be combined and embedded into the employees’ DNA,” said CEO Kwon in his congratulatory address. “I look forward to seeing POSCO DAEWOO take the initiative in making POSCO Group proud by enhancing the synergy of the company’s global businesses as a key affiliate of the group.”

“The foundation of POSCO DAEWOO is an important opportunity to solidify a sense of unity for POSCO Group, as well as to strive to create and lead the synergy of the group’s overseas businesses,” said President Young-sang Kim. “As employees and executives, let’s all equip ourselves with POSCO DAEWOO’s creative and challenging spirit, and serve as the main agents of the forward base that will develop the future value of the POSCO Group throughout the world.”

POSCO DAEWOO was founded as Daewoo Industry in 1967, then renamed as Daewoo International in 2000, specializing in international trade, project organizing, and resource development. It was incorporated into POSCO Group in 2010.

The change of name to POSCO DAEWOO will help establish it as a leading global trading company. Moreover, the company plans to actively break into new global markets as a comprehensive trading company that connects value chains in all business areas based on business know-how and abundant overseas networks that have been cultivated over a long period of time.

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In addition to projects that directly affect the health of the environment like these, POSCO steel is also used in a number of sustainable buildings and structures around the world.

Beijing POSCO Center

On November 11, 2015, POSCO celebrated the completion of the Beijing POSCO Center in the Wangjing district of Beijing. The total construction time lasted just three years, and was accident-free. Built to be the headquarter location of POSCO China and to promote a sense of community between the Korean company and the Beijing local businesses. The Beijing POSCO Center includes two buildings, A Tower with 33 floors and B Tower with 25 floors. Three years of accident-free construction

The building is eco-friendly, including an automatic air cleaning system, a sunlit lighting system and an automatic temperature/humidity control system. The Ice Thermal Storage system produces ice that is stored overnight, then used for air conditioning during the day, maximizing energy efficiency. The Beijing POSCO Center received the “Green Construction Certificate 3 Stars” award, the highest building environment certification, from the Chinese government.

POSCO Center, Teheran Road

POSCO Center is an “intelligent building” and a landmark of Teheran Road. POSCO Center was opened as Korea`s first intelligent building; its groundbreaking took place in January, 1992. The building is completely digitalized and automatically adjusts temperature, humidity and lighting. In the summer, curtains close automatically to block the sun and in the winter, the building automatically responds to the cold. Its architectural design eliminates wasted space and technology guarantees maximized energy efficiency.

POSCO Center is open to the public, and the Atrium connecting the two complexes of the building is used as a public plaza. Opened 20 years ago, the POSCO Center is still modern, technologically advanced and eco-friendly.

Turkmenistan Mary Filtration Plant

POSCO Engineering and Turkmenistan’s local construction company, Chakmak Dashy, are working together to construct the Mary Filtration Plant, in Mary City in Turkmenistan.

Supported by the Mary state government of Turkmenistan, the plant construction project will demolish the existing filtration plant and construct a new filtration plant of 120,000 m3 and a water intake station of 240,000 m3.

This project, which is part of the global water environment industry, is the result of POSCO’s continuous efforts to secure contracts in water supply, drainage systems and water treatment.

POSCO Green Building

The POSCO Green Building is a future building, which applies environmentally friendly and energy reduction technology, located on the Yonsei University International Campus located in Songdo, Incheon. It was completed as part of a project that aims to present a new approach to domestic green building construction and consider environmentally friendly and low energy processes, from design and construction to operation and disposal.

More than 100 green technologies including solar power, geothermal air-conditioning and heating are used, optimizing energy performance by 30 to 100 percent compared to other existing buildings. Approximately 35 percent of the energy required by the building is self-generated, using renewable energy.

Energy reduction materials developed by POSCO were largely used in the building construction, including a steel curtain wall which boasts the best domestic insulation and vacuum oscillation which increases heat retention. In addition, self-cleaning steel plates were used for the building’s exterior walls. These steel plates have a 30 percent longer lifecycle than regular steel plates. POSCO plans to utilize the Green Building as a model for energy-reduction homes.

North East Asia Trade Tower

Construction of the North East Asia Trade Tower (NEATT), a large-scale complex made up of offices, a hotel and restaurants, was completed in Songdo, Incheon in July 2014 by POSCO Engineering & Construction. The structure serves as a model of sustainable design strategies, carefully balancing energy conservation, increased indoor environmental quality and occupant comfort.

The exterior glazing allows for abundant daylight penetration and expansive views (which are especially impressive from the observation platform on the 65^th floor). Exterior shading devices and a high performance glazing specification work together to limit solar heat gain and reduce air conditioning costs. Operable windows allow for smoke exhaust, while small LED lights are embedded into the exterior outriggers, greatly reducing the energy spent on lighting the building at night.

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POSCO Automobile Solution Seminar has been held every year since 2005 as a channel to introduce results and used technologies of R&D projects conducted by POSCO and World Auto Steel, the automotive group of the World Steel Association.

POSCO changed the name of the seminar to the “POSCO Automobile Solution Seminar” this year, along with expanded the scales and focused on promoting POSCO’s latest technologies for automobile solutions.

POSCO hosts the 2015 POSCO Automobile Solution Seminar, December 10 at the Global R&D Center in Songdo, Incheon

During the seminar, POSCO presented its R&D results for 2015, including the development progress of automotive steel such as advanced high strength sheet steel (AHSS) and the technological trends for lightweight car body. They also promoted the importance of joint growth and cooperation with customers, R&D institutions and universities, introducing POSCO’s solution marketing.

On special display were two torn down vehicles, showing the detailed analysis of interior components and attracting the audience’s attention. The audience took a look into the two torn down models, a small Peugeot SUV and a Dodge pickup truck, to understand the latest design trends and materials for vehicles.

Two torn down vehicles were displayed for detailed analysis of interior components and materials of the vehicles

Representatives said, “The seminar was very useful to learn in-depth technical knowledge of high strength sheet steel solutions. It will be a big help in automobile design and components processing in the future.”

G-JEDP is one of POSCO’s human resources (HR) programs that aims to foster essential manpower to lead the company’s overseas affiliates and to eliminate the need for expatriates in the future, according to POSCO’s manpower localization strategy. The training session was attended by 24 junior executives from 18 affiliates in nine countries.

The G-JEDP curriculum includes instruction on setting management strategy, improving leadership for building a team and fostering manpower, understanding POSCO’s values and culture and solving major management issues. Participatory programs such as discussions and case studies were introduced to increase trainee understanding and engagement.

Trainees are also given assignments chosen in advance by the president of their affiliate company. They then draw execution plans during the training in accordance with the assignment completion process. Later, when they return to their countries, trainees apply the execution plan to field work with the support of the affiliate.

This kind of training method is called “action learning” and has been used by many local and global companies such as GE, IBM, DuPont and Samsung as a process that can both foster leadership and solve management issues.

In this year’s G-JEDP, various issues which have emerged in overseas affiliates, such as profit improvement, cost reduction, HR system improvement and manpower development were discussed. Employees were supported by Korea’s best learning coaches, an effort initiated to create excellent outcomes.

After the completion of the program, trainees expressed their thoughts, with one participant noting, “We could cultivate strategic thinking by discussing and solving concerns of junior executives  together with employees from different overseas affiliates. In particular, learning about different views and perspectives of other trainees and learning coaches was the biggest outcome of the training.”

The G-JEDP is slated to be held in the first and second halves of 2016. POSCO Group University plans to continuously foster superior talent from overseas affiliates based on the recommendation of POSCO’s HR department.

In the North Pacific, there is an entire area the size of Texas that is made up primarily of garbage. This floating island of waste, not-so-affectionately referred to as the Great Pacific Garbage Patch, swirls around slowly with the ocean currents, imprisoning ill-fated sea creatures and marine life, while trapping non-biodegradable debris, breaking it down into tiny toxic bits and dispersing it throughout the ocean’s waters.

Of these marine wastes, plastics are perhaps the most common and the most harmful, as they tend to act as a chemical sponge, concentrating the most damaging pollutants found in the world’s oceans. In fact, for every pound of natural plankton in this area, there are six pounds of plastic.

This gyre, or system of circular ocean current formed by the Earth’s wind patterns and rotational forces, spans waters from North America’s West Coast to Japan, where it meets other gyres. Here, the marine waste is further circulated along oceanic highways.

The continuously circulating pollution, along with warming water temperatures, has severely affected marine ecosystems throughout the world. South Korea, for one, began to encounter the ill effects of this problematic situation in the early 1970s with the first occurrence of reef degradation, or “the whitening phenomenon,” off the peninsula’s southern coasts. “Stressed” coral, unable to photosynthesize due to decreasing algae, quickly began to perish.

As industrialization in these areas continued to increase and tourism began to flourish, damages expanded across the eastern and southern coasts, as well as Jeju Island. The seawater’s self-purification capability steadily weakened and the accumulating amount of marine wastes and toxic substances permeating Korea’s waters kept sunlight from reaching the ocean floor. Without sufficient sunlight, and thus nutrition and oxygenation, the number of algae and sealife dwindled significantly, causing distress to both the ecosystem and the nation’s fishing economy.

Triton Saves the Day

In an effort to rehabilitate Korea’s valuable marine ecosystem, POSCO, a world leading steel company, teamed up with the Research Institute of Science and Technology (RIST) and the Korean government to lead an unprecedented environmental initiative. In 2000, after extensive research, POSCO and RIST developed Triton to promote marine forestation in the damaged areas.

Named after a sea-god of Greek mythology, Triton is structure made of steel slag, an eco-friendly by-product of steel making that contains a high proportion of iron and calcium, elements that just so happen to provide ideal conditions for the growth of seaweed and algae spores, and the purification of contaminated sediment.

It didn’t take long—a year and a half, to be precise—for the forestation efforts to be effective. With steel reefs providing a more habitable, biodiverse environment, abalone and sea cucumber, creatures that had all but died out, prospered. Additionally, the restoration of the marine ecosystem contributed to the increase of fish productivity and therefore the local economies of coastal towns and villages.

That year, close to 200 Triton reefs were installed in eight fisheries along the coastal area of Geomun Island. Since then, POSCO has used steel slag to implement numerous other sea slag forests, and has played an active role in the nation’s marine afforestation projects to help the ecosystem adapt to climate change and demonstrate how by-products from the steel industry can be used in a way that yields positive outcomes for the environment and for communities.

Volunteering to Make a Difference

Unlike other sea-gods, Triton possessed a twisted conch shell, on which he blew like a horn to placate or raise the ocean waters. Legend has it that its sound was so jarring that it could put the giants, who imagined it to be the roar of a dark wild beast, to flight. Like Triton’s conch, POSCO hopes to make a lot of noise about the issues plaguing the world’s oceanic ecosystems.

As such, some 600 of the company’s employees who are passionate about making a difference have joined together to create POSCO Clean Ocean Volunteers. The group, which is dispersed throughout Korea, plays a leading role in marine conservation and educating the public about the importance of the marine environment. The group’s past efforts, in conjunction with local governments, maritime police and the coast guard, have included activities such as water purification, beach clean ups and the salvaging of sunken ships. The Clean Ocean Volunteers have also been proactive in the removal of , which in recent years have increased exponentially and have had a negative impact on the local fishing industry.

Revolutionary Features of Korea’s New Landmark, Northeast Asia Trade Tower

#1. 3-Dimensional Exterior Design Minimizes the Effect of Wind Load

POSCO Engineering & Construction, the construction arm of Korea’s top steelmaker POSCO, applied its most innovative and cutting-edge technology in the construction of NEAT Tower, the tallest building in Korea. To minimize the effect of wind load on the building, the tower was constructed under a 3-dimensional exterior design which features a trapezoid at the base which gradually transforms into a triangle at the top.

#2. Seismic Force Resisting System Utilizing Belt Truss and Outriggers

NEATT’ s main frame system consists of 27 perimeter columns, six corner mega columns, a core wall, and an outrigger/belt truss, all of which are systemically integrated. The core wall takes about 65% of the total gravity load and 70% of the total overturning moment due to wind load. The outrigger systems are installed on the 34^th and 65^th floors of NEATT and the structural design was performed in such a way that the axial load developed in columns due to the outrigger’s share of the overturning moment could also be resisted safely. The outrigger and belt system takes 30% of the overturning moment.

The core walls and columns of NEATT, an SRC structural building, were constructed with 12,841 tons of POSCO’s globally renowned high-strength reinforced concrete and SD40 reinforcing bars. The corner mega column was, for the first time in the construction of skyscrapers in Korea, built with 7,870 tons of SMC570TMC steel. The glass curtain wall enveloping the exterior was installed using low-emissivity glass. Low-emissivity (low-E) coatings are microscopically thin metal layers that are deposited on a window surface to help keep heat on the same side of the glass from which it originated. Glass with Low-E coatings reflect infrared light while allowing visible light, keeping the movement between interior and exterior heat to a minimum.

* Technical specifications of the Northeast Asia Trade Tower referenced from “NEATT Design of Structural System,” Dong Yang Structural Engineers Co., 2014.

#3. High Level Security and Anti-Disaster Measures

As the landmark building of Korea, Northeast Asia Trade Tower boasts high level security and anti-disaster measures. For example, it deployed global positioning system (GPS) sensors to help ensure the real-time measurement of vibration, displacement or deformation in the building caused by external factors, making it possible to preemptively identify any issues that could compromise the safety or structural integrity of the building. Additionally, the Seismic Force Resisting System can withstand magnitude 7-8 earthquakes.

In addition, the anti-disaster control center located on the first basement floor provides the ability to centrally monitor the power supply, lighting, CCTV system, access control and other utility services. The 30^th and 60^th floors each have a shelter that can accommodate up to 4,000 occupants safely and promptly in the event of an emergency, such as a fire. The building has 29 elevators operating at a speed of 420 meters per minute and capable of carrying users from the ground floor to the observatory on the 65^th floor within one minute.

< The anti-disaster control center located on the first basement floor provides the ability to centrally monitor the power supply, lighting, CCTV system, access control and other utility services. >

Going Green: A Striking Example of Sustainable Design

NEATT serves as a model of sustainable design strategies, carefully balancing energy conservation, increased indoor environmental quality, and occupant comfort. With a range of passive design strategies such as daylighting, natural ventilation and energy-efficient HVAC systems, the tower targets to achieve LEED^® Silver certification.

Like other buildings in New Songdo City, NEATT purchases district hot water from a new, highly efficient cogeneration facility located nearby. Hot water, used for heating and cooling via absorption chillers, is generated from waste heat recovered during the process of producing electricity. The building is estimated to reduce source-energy CO2 emissions by 6,000 tons per year when compared to a “standard” code-compliant office tower with on-site electric chillers and a natural-gas boiler plant.

Furthermore, the paint, carpets and wallpaper used in the construction of the building’s interior were of eco-friendly, non-toxic material in order to prevent the occurrence of Sick Building Syndrome.

* NEATT sustainability design features referenced from articles by ARUP and Built Expressions

<A Night View of the NEAT Tower and Songdo International Business District, Incheon>

The Northeast Asia Trade Tower is expected to boost the regional economy along with an increase in floating population, markets, employment and visitors from overseas once companies move into the building. Moreover, it appears to give momentum to draw more businesses to Songdo International Business District since clients of Daewoo International and other companies engaged in the related fields are expected to move into the building. We hope that NEAT tower will soon become Korea’s most well-known landmark in the days to come!

On December 6^th, POSCO and the Korea Federation of Small and Medium Business hosted the ‘Launching ceremony for QSS innovation activities to make living manufacturing sites’ at Top Metal, located in the Namdong Industrial Complex in Incheon.

The ceremony was a result of the ‘POSCO-Korea Federation of Small and Medium Business Agreement to Spread QSS Innovation Activities,’ with the aim of expanding POSCO’s small and medium company innovation activity support from those involved in businesses with POSCO in the Pohang and Gwangyang regions to all 450 companies nationwide.

Seventy people attended the event, including Chairman Kim Ki-mun of the Korea Federation of Small and Medium Business, CEO Chung Joonyang, as well as presidents and employees of small- and medium-sized companies participating in QSS innovation activities.

POSCO will provide overall management support from forming an innovation culture to talent fostering, efficiency management, and environment management to the small- and medium-sized companies participating in the QSS innovation activities.

The first priority will be to settle 5S (arrangement, order, cleaning, cleanliness, habituation) activities to eliminate sources of pollution and maintain a clean working environment. Daily inspection sheets will be utilized for systematic equipment inspection such as cleaning, tightening, and lubricating facilities, and maintaining the most optimal conditions through ‘management through the eyes’ activities. Material management efficiency will be maintained by adhering to fixed products, fixed quantities, and fixed locations, and preventing ‘time wasted from searching,’ while safety accident prevention will be guided through facility improvement and education.

Top Metal, where the event was held, has received QSS activity support from POSCO since last year, and since introducing QSS activities has seen great management results including reduced product manufacturing time, cost reduction, and improved quality and productivity.

 Participants heard Top Metal’s innovation activity results and learned innovation know-how by benchmarking real on-site cases, and developed a desire to improve productivity and secure competitiveness through QSS activities.

CEO Chung Joonyang commented, “In an era of increasingly intense and infinite competition, our small and medium companies must become stronger to survive, and to survive must become accustomed to change and improvement. The QSS activities POSCO is supporting will become the base for small and medium companies to grow innovation capabilities and become stronger.”

POSCO and the Korea Federation of Small and Medium Business will start with support of 50 companies this year and extend it to an additional 100 companies each subsequent year, with plans to support a total of 450 small and medium companies by 2017 and help strengthen their competitiveness and continuous growth.