POSCO’s commitment to building its brand is paying off. POSCO, which increased its brand value by 5%p compared to last year, placed 5^th on the 2014 Best Korea Brands list for the second consecutive year. Based on its TV-CM and Corporate Social Responsibility initiatives, as well as its internal branding activities, POSCO was evaluated as a brand with an asset value of about 3 trillion won. POSCO ranked 5^th after other Korean powerhouses that topped the list including Samsung, Hyundai, Kia Motors and SK Telecom.

Here are some of the factors that contributed to POSCO making it into the top 5 brands for this year’s list.

1)      A Game Changing Ad Campaign

Last year, POSCO launched its advertising campaign centered around “Becoming the Base of the World”, meant to imply that POSCO will be the foundation for the world. Although POSCO is a B2B company, it successfully showed a softer side to touch the general public and its internal employees.

In the ad shot in the Rocky Mountains, POSCO acts as the compass to guide where to go and the map to show how to go forth to take on a new challenges.

Pictured here: Still shots from 2^nd ad campaign – Where is your base camp?

Another ad captured the precious moments in our life juxtaposed to how POSCO acts as the base for everyone. The overall concept was designed to show POSCO’s vision of creating the foundations for the future through its steel, materials and energy business.

Pictured here: Still shots from 1^st ad campaign – Where is your base camp?

  2)      Commitment to CSR initiatives

POSCO strengthened its overall corporate reputation through various CSR activities. POSCO established its social enterprise ‘POSCO Humans’ in January 2013, aimed at contributing to job creation for socially underprivileged through eco-friendly steel construction projects.

In addition, POSCO established its ‘1% Sharing Foundation’ to promote ‘Sharing 1% for a better world’. The 1% Sharing Foundation raises funds through employee donations from POSCO and investment companies along with matching grants from the company itself.

The ‘1% Sharing Foundation’ launched in October 2011 starting with POSCO officers and senior managers donating 1% of their wages. This then led to voluntary participation of all POSCO Family company employees. As of November 2013, POSCO and 26 family companies have participated in the 1% sharing campaign. The foundation embodies the strengthening of local community capabilities in Korea and globally through service projects for unprivileged citizens and the protection of Korean cultural heritage properties at risk of loss.

 Pictured here: Relief project in the Philippines funded by the 1% Sharing Foundation

3)      Establishing Brand Ambassadors

POSCO created its Brand Ambassador program which includes a group of 36 POSCO employees that come together to share the company’s mission and vision. Together they work to find ways to enhance the POSCO brand through training workshops, special outings and discussion forums.

Pictured here: Brand Ambassdors sharing insights on brand value

Managing Director at Interbrand Korea, Jihun Moon, mentioned in his overall evaluation that POSCO’s “Brand Ambassador program was a successful example of brand internalization” as it contributed towards revitalizing a brand within an organization and emphasized creating support between employees through brand philosophy. 

Pictured here: Brand Ambassadors visiting other companies to gain insight on other brands

Methodology

The Best Korea Brands list is published annually by the global brand consulting group, Interbrand, which also publishes the ‘World Top 100 Brands’. The list is made up of the top 50 brands that represent Korea and is based on the same rigorous evaluation as the ‘World Top 100 Brands’ list. Under the belief that a strong brand, regardless of the market in which it operates, drives improved business performance , the three key components in all valuations include analyses of the competitive strength of the brand, the role the brand plays in the purchase decision, and the financial performance of the branded products or services. For further information on methodology, visit the official Interbrand site.

The full 2014 list is available in the 2014 March issue of Fortune Magazine Korea.

Click here for the full 2013 Best Korea Brands list.

The ‘1% Sharing Foundation’ launched this day starting with POSCO officers and senior managers donating 1% of their wages in October of 2011. This then led to voluntary participation of all family company employees, spreading quickly throughout the POSCO Family.

As of November, POSCO and 26 family companies have participated in the 1% sharing campaign. Accordingly, POSCO reviewed establishment of the 1% Sharing Foundation to more effectively operate the funds formed from the donations of more than 90% of the family company employees.

The Board of Directors consists of 6 members including Foundation Chairman CEO Chung Joon-yang, Korea Soongsil Cyber University Vice President Jeong Mu-seong, Community Chest of Korea Division Head Jeong Jin-ok, Global Village Love-Sharing President Kim Hae-seong, SESNet Executive Director Jeong Seon-hee, and Pohang External Partner Company Association Chairman Kim Byeong-pil. In addition to the directors, Labor-Management Council Labor Committee Head Lee Ju-hyeong and Samil PricewaterhouseCoopers Executive Director Kim Jae-yun also attended the founding ceremony.

The 1% Sharing Foundation will start carrying out sharing projects with the 4 billion KRW of funds consisting of POSCO Family company employee donations and the company’s matching grants. Starting in 2014, donations from external partner companies will also be included, with the annual funds expected to reach 7 billion KRW.

CEO Chung Joon-yang said, “Sharing activities carried out consistently since the founding of POSCO with a dream of shared growth with the local community has bloomed into a flower of all employees sharing 1% of their wages. I find it deeply meaningful that we are able to provide support to the typhoon victims in the Philippines with the sincere donations of 37,000 POSCO Family members.”

Meanwhile, the Social Contribution Team employees, who will essentially operate the foundation, pledged to carry out various projects such as cultural welfare initiatives for the underprivileged, cultural inheritance protection, and promotion of social welfare both domestically and internationally to spread the culture of sharing all around.