Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

However, due to the successful management of POSCO’s overseas subsidiaries, the combined performance of the group improved significantly. By focusing on sales of high value-added products based on solution marketing, engaging in extensive cost-saving efforts, and generating revenues via the “Innovation POSCO Project”, POSCO was able to deliver a two-digit profit margin and a more than 50-percent jump in stock value.

By continuing this work in 2017, POSCO is determined to maintain its position as a leader in the global steel industry.

POSCO’s Vision for 2017

In 2017, further improvements in the global steel market are likely as the global economy continues its recovery. Also, improvements are expected in the supply-demand imbalance as China is expected to slightly reduce steel production.

In 2017, POSCO plans to further the success seen in 2016 and continue to lead the steel industry through innovation and continuous improvements of its World Premium Products.

However, the spread of trade protectionism across developed and developing countries alike, is expected to create potential barriers for POSCO’s export environment. Moreover, competing mills have been accelerating consolidation and expansion to maintain their dominance in their respective local markets while also focusing on the development of high-end products. All of these factors point to ever intensifying competition both in terms of quantity and quality.

To remain competitive with other leading global players in 2017, POSCO plans to solidify its profitability by completing its restructuring process as part of Innovation POSCO 2.0 and strengthening its foundation for future growth.

In CEO Ohjoon Kwon’s 2017 New Year’s message, he marked the steps that must be taken in 2017 to accomplish these goals. First, POSCO must continue upgrading its steel business with proprietary technologies. Second, the business structure of POSCO Group should be continuously restructured to improve efficiencies in low-profit businesses. Third, future growth must be ensured by strengthening competencies based on “Smart Solutions.” And lastly, POSCO must continue its work to establish a flexible and creative corporate culture that excels in the 21^st century.

Despite all of the aforementioned challenges facing the steel industry, POSCO has continued to be a leader. Through innovation and a strong focus on improving the quality of its World Premium Products, POSCO is again well-positioned to lead the industry in 2017 – and in the years to come.

Still, in the small town of Nuanquan in Heibi Province, China, just west of Beijing, a small group of farmers are keeping one of the world’s most unique fireworks displays alive.

Resource: China’s Blacksmiths Put On Dazzling Display for New Year

About 500 years ago, there were many blacksmith shops in the farming town of Nuanquan. Unable to afford expensive fireworks during the Chinese New Year holiday, lower income residents such as blacksmiths and farmers sought an alternative. Inspired by the beautiful sparks emitted during their iron working, a group of brave blacksmiths began splashing molten metal on the city walls, which resulted in the creation of beautiful flower shapes from the cooling iron.

Photo Credit: Robert Berkowitz Creative Commons

As time went on, locals began to prefer the stunning, steel-catalyzed display to fireworks, and donated their scrap metal to the blacksmiths to use during the annual performance. Eventually, a more developed system evolved and eventually became known as dashuhua, which roughly translates as “throwing tree fireworks.”

To create the display, men first soak wooden ladles in water for three days prior to the show to prevent them from combusting on impact. After dipping the ladles into the molten iron (which is made from smashed up pieces of pig iron), flames instantly shoot up. As such, the men work quickly to splash the molten iron onto the city wall to avoid injury.

As the metal strikes the cold, hard wall, it explodes into a shower of sparks, mostly over the performers. Due to the danger posed by the falling molten iron, only the bravest individuals performed in the show, wearing only a jacket made of sheepskin—a material that naturally repels the molten iron—and a straw hat to protect against the splash of hot metal.

Photo Credit: Robert Berkowitz Creative Commons

Despite being banned during the Cultural Revolution from 1966 to 1976, the tradition has since carried on through the ages. Refusing modern protective clothing to more closely maintain the tradition, today’s performers are prideful of their region’s rich cultural heritage and are eager to pass on the custom to their children. They are also pleased that the event continues to attract spectators from all over China, who gather in freezing temperatures to witness the incredible scene of a night sky illuminated by the sparks of molten iron.

However, as urbanization surges in the world’s most populated nation, the tradition is on the decline, with only four performers left. As such, the Chinese government has designated dashuhua as an Intangible Cultural Heritage and has helped organizers build a dedicated stage for their performances, with an aim to preserve the country’s past as well as Nuanquan’s steel-centric custom.

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Interview with Editor of The Birth of “Bloom in Daewoo”- the First Collected Works of Employees

Everybody is familiar with books, but what about producing a book? Right, this article is to share “Fleet of Time” collected works edited, published and produced by Daewoo Shanghai.

This book consists of over 40 essays about company events, travels, and social issues that were written by employees from 2011 to 2014. It took about two weeks to complete and left a conclusion that it is “an aggravating process with a happy ending”. Therefore, POSCO-China has interviewed Nana Ma, one of the initiators of the publication, and shared her spirit and ingenuity embodied in the book with us.

Q：What kind of book is it?

A：This book is a record of all the articles of Daewoo Shanghai employees who have been contributing to “E-Spirit” journals since 2011. The book also includes some fabulous pictures that were submitted in travel photography contests organized by the company in the past two years.

Q：Why was the book edited internally instead of finding an outsourcer?

A：When the personnel manager told me that the general manager suggested internally editing the book, I considered it as a compulsory task so I was feeling only awkward, in Chinese, “Jiong”. There are many professional agents that specialize in publishing and printing books in the market. Everything will be taken good care of as long as our requirement is clear. So I started searching for such agents. However, the problem is that 100 prints are not enough for mass production whereas the overall expense is much more than that of printing 1,000 copies. Taking into account the cost of designing the page layout and back and forth communication with the agent for modification requests, this would be a time consuming, effort demanding and costly task. Eventually, we decided to select content, compile and proofread on our own and delegate only printing task to the agent.

Q：Did you come across any difficulty during the work? How did you overcome it?

A：However, as I think further, I wondered, ‘how can it be possible?’. I am only a little office clerk and have not ever worked professionally in publishing before. How can I know about page and layout design? Despite the anxious feeling, I had to carry on the task! Working as a deputy, witnessing our personnel manager implementing the project with a calm and organized manner. With ease and a step-by-step process from gathering materials, I felt more confident af if I have taken a sedative pill and started assisting my personnel manager on the project.

(The lady on the right is Nana Ma.)

Q：And what has attracted your continued attention during the editing process?

A：We sorted out all the articles in “E-Spirit” journals and image options from travel photography contests of each year. As a next step, we designed page layouts, unified line spacings, printed out pages, made a review, and manually adjusted the image formats in each article. Then, we classified into sections based on topics, created the index, designed the cover page, thought about titles together with colleagues, proofread the content and made modification page by page. New Year messages were appended at the end of the book, with collection of our pictures, wishes and prospects for the upcoming 2015. Our two weeks battle is summarized into only a few sentences. After receiving the final prints, seeing everybody like it, I felt so proud as if I am a child receiving compliments by others. My final impression: an annoying process with a happy ending.

This content has been created by Meng Jiaxi from POSCO-China.

On behalf of POSCO, I am delighted to be able to welcome the New Year with Daewoo International, POSCO E&C, POSCO Energy, POSCO CHEMTECH, POSCO ICT, as well as all the overseas staff from around the world, including China, Japan, Indonesia, Vietnam, India, and Mexico.  I wish you all a very Happy New Year! My POSCO Family!

My POSCO Family!

Last year, “MV POSCO” risked capsizing under torrential trading conditions, with the decline in profitability and stock price, the downgrade in our credit rating, and the sluggish performance of several investment projects. But, 2014 also marked a momentous year in which we embarked on our ambitious journey to become “POSCO the Great”.

In order to achieve this, we have been implementing an all-out transformation. We have made innovation an integral part of our operations by focusing on four strategic agendas: the enhancement of core competitiveness in steel, a thorough review and critical selection of new growth businesses, dramatic improvements in our financial structure, and reforms to our management infrastructure.

As we commence the New Year, I would like to express my utmost gratitude to all members of the POSCO family for supporting the company’s innovation agenda and implementing the reforms.

Through your tireless efforts and contributions, we have been able to complete the first phase of our midterm management objectives without any major issues.

I would like to take this opportunity to especially thank the employees at Indonesia Krakatau-POSCO, POSCO, and Daewoo International for their immense contribution to reaching this target.

Dear my POSCO Family!

Looking back on 2014, I would like to emphasize not only our achievement in reaching our management goals financially and quantitatively, but also the way we demonstrated the operational versatility to improvise our strategic direction, adapt to the constantly shifting industry environment, and collectively overcome the obstacles that stood before us.

As I look back, I am fearless about the challenges that lay ahead for our organization as I know that together we stand strong, determined and ready to respond with conviction

My members of the POSCO Family!

As we stand at the start of 2015, the business environment offers few signs of improvement.

Although the global economy is forecast to improve slightly with the recovery in the United States, any significant breakthrough is likely to be hindered by stagnant domestic demand, the slowdown in China, and the relative appreciation of the Won against the Yen.

Global steel demand is at a standstill, with declining prices resulting in a tighter squeeze in margins. For our subsidiaries, competition and business conditions are expected to be onerous.

I cannot reiterate enough how 2015 ought to be the Year of Perseverance to realize increased profitability and improved competitiveness.The critical phrase that I would like you to focus on as we usher in the New Year is “financial result generation.”

As we begin the second year of the Three-year Midterm Plan, it is vitally important that we demonstrate our executive ability for the key business agenda and move closer to our goal of genuinely actualizing favorable financial results.

My adored POSCO Family!

Let me share with you the five factors that will help guide us in the progressive direction of accomplishing the desired midterm financial results.

First, we must strengthen our revenue structure by providing solutions.

We have accelerated our premium product strategy in recent years by integrating technology, sales and solution marketing. This strategy was identified after due consideration as being the best way to ensure our longevity in this fiercely competitive business environment.

In the New Year, we must demonstrate progressive solution marketing by focusing on the development of World Premium products. We must expand the infrastructure of our global solutions to promote effective commercial support by TSC and other members of our solutions network. In the case of our family companies that engage predominantly in contract-based businesses, we have to mobilize our group’s capabilities and reinforce our solutions business in order to secure first-mover advantage by proposing and developing customized client-centric projects.

The second guiding factor is the acceleration of the ongoing organizational restructuring and the stabilization of our balance sheet.

Last year, we established the master plan for our group-wide restructuring and moved forward with the overhaul of our non-core operations. However, there is still a long way to go. This year, we plan to leave no stone unturned on our search to swiftly reorganize and fundamentally reinvigorate operations that are unprofitable. We must also internally minimize waste by reducing our inventory and working capital while still effectively managing our investments and any other assets that we may have neglected in the past.

Third, POSCO will advocate the proliferation and establishment of a project-based working approach.

This project-based working method is a tactic designed to explore potential projects that can deliver exceptional results and increased profitability with the short-term support of operational resources. Most importantly, the project-based system allows us to achieve quantitative financial performance. Projects that contribute to the realization of financial results will be recognized and adequately compensated. By focusing on discovering lucrative projects and producing tangible results in 2015, I look forward to the ability of project-based working to institute itself as a powerful tool in generating profits and creating a win-win scenario for both company and employees.

The fourth guiding factor is the need to realize the commercialization of our potential growth businesses.  

When I became CEO last March, I suggested that our sustainable future as a business lay in fostering a thorough review and critical selection of new growth businesses. As part of this review and selection of new growth businesses, we must incorporate our competitive technological advantages.  We must call for the advancement of lithium extraction technology in Argentina and nickel refining technology in Pohang to reach the commercialization phase. In addition to improving the performance of our fuel cell systems used in buildings for commercialization, we also need to stabilize our Gwangyang SNG plant’s processing operations in its stages following construction.

The fifth guiding factor is the need to expedite the fortification and augmentation of our group’s operational efficiencies and synergies.

The previous year saw the inauguration of the Value Management Department, which serves as the group’s corporate center, and the selection of key performance indicators for POSCO group’s reinforced goals centered on EVA (economic value-added). This year should be defined by the collaboration we achieve between our family companies specializing in their respective industries for greater operating efficiency, value creation, and synergy formation. We will also continue to expand the coordination and cooperation of overseas businesses by operating several regional headquarters.

My cherished POSCO Family!

I would like to respectfully insist that you maintain your alignment to the group’s strategic direction mentioned above in order that we accomplish the group’s management objectives.  I cannot stress enough that now is the time to propel our operations at full tilt.

Today, “MV POSCO” is no longer fit for purpose: the way of the lone battleship is no more. The role of our subsidiaries and overseas enterprises has become critical, as sales from these two groups account for over half of POSCO Group’s total revenue. These remote vessels of POSCO must assemble as an impregnable armada in order to realize our group-wide vision.  I urge you to give your full commitment to fulfilling this daunting task and exhibit superior competitiveness to reinvigorate our core competencies. That is how we will achieve our midterm goals and establish the foundation for the firm’s long-term prosperity.

My revered POSCO Family! Where do we stand and in which direction are we heading?

It is no exaggeration to state that “MV POSCO” has weathered one of the most calamitous storms since its foundation.

However, more important than the ability to endure is the capability to emerge triumphant. That is true victory.Despite the ominous predicament that stands in our way, let us unite and prevail undefeated to affirm our dignity and pride as part of the “POSCO Identity”.

I wish you all a victorious year in 2015. Once again, allow me to express my unconditional affection and appreciation for my admirable POSCO Family members.

On the first morning of 2015
CEO Ohjoon Kwon

[box] To greet the new year, CEO Ohjoon Kwon has recorded a special message. Please visit the website and take a look [/box]

One of Vietnam’s poorest communities rings in the New Year with new classrooms, homes, and infrastructure for life.

In Tan Hoa Commune, they’re celebrating Tết—Vietnam’s New Year—in a brand new place.

“Even living to this age, I have never imagined that I would ever have such a beautiful house to live in,” says Mrs. Tran Kim Xuyen, 72. Mrs. Xuyen is the owner of a new 35-square-meter home with a kitchen, bedroom, and living room—a spacious change from her family’s former low-roofed abode.

As one of rural Vietnam’s poorest communities, Tan Hoa was selected by POSCO and Habitat for Humanity as the destination for a joint development mission. Located in the Ba Ria-Vung Tau province, the area is known for its developing petroleum, electricity, steel, and chemical industries. Now, resources for local residents are catching up.

On January 14^th, a total of 153 volunteers arrived in Tan Hoa Commune in Tan Thanh District. Along with 20 members of the POSCO Family in Vietnam and 3 of POSCO’s CSR team, the group also welcomed 80 Korean students as part of the POSCO Global Youth group, plus 20 Vietnamese students and 30 home construction specialists from Habitat for Humanity.

The group worked together for 5 days on construction of Tan Hoa’s new homes. All of the new houses were built under the supervision of Habitat for Humanity construction experts. Engineers were br

ought in to make sure the homes met Vietnamese construction requirements.

But for many, the physical labor involved in building a home was a new experience—especially given Vietnam’s humid climate. Heat and wind proved challenging for the volunteers, as did language barriers. Everyone was left bathed in sweat as they worked, carrying sand, gravel, and brick around the construction site and mixing cement for the bricklayers.

We interviewed one Korean student volunteer as he transported a block of bricks to the site of a new home. “It’s really hot here. But our team is working hard to make sure this house is completed before the new year, no matter how much we sweat or bleed,” he said. “The residents here are the poorest people I’ve ever seen, but they still are hospitable. They need these homes,” he added.

To the volunteers, the 72-year-old new homeowner Mrs. Xuyen expressed only gratitude. “Thank you very much for building this house for me. I will never forget the time you have spent and the help you have given my family,” she said.

Schoolhouse Rock

As the newly-laid bricks of Tan Hoa’s ten new homes settled, the volunteers moved to a different part of Tan Thanh District. This time, they set out to help out the students of Hac Dich Middle School.

The school is one of the most rundown in the area, as it has endured years of the unforgiving climate without any maintenance or upgrades. When they arrived, the volunteers split into six groups. Over two days, they carried out repairs on the school’s stairs, desks, and chairs, plus painting the windows and cleaning the school grounds.

After the hard work was complete, the volunteers gathered together with students from the school and the Youth Union of Tan Thanh District for a cultural exchange party. Celebrations came complete with traditional art, dance, and music from Korea and Vietnam.

“This is the first time I’ve met and had fun with students from another country,” said one Hac Dich Middle School student. With the enthusiasm of youth, the student added that, “I learned a lot about Korean culture and people. I will miss the volunteers. I hope to see them again someday.”

Labor of Love

For their final stop, the 100 students of the volunteer group headed south to Long Dien to visit some of the wisest residents of Ba Ria-Vung Tau.

At the Long Dien District Elderly and Lonely Care Center, the hard labor of previous days wasn’t needed. Instead, volunteers delivered food and New Year’s gifts—cooking oil, milk, noodles, cookies, and other daily necessities—for the center’s Tết celebrations. With the help of the Vietnamese student volunteers, the Korean students also made conversation and spent a bit of quality time with the center’s elderly residents, most of whom are homeless.

“New Year’s Day is coming. But we are always worried about daily living conditions during Tết,” explained one of the residents. “Thanks to the presents delivered by the volunteers, we have enough food for this Tết.”

A New Start

8 days, 10 houses, 6 groups, countless desks and chairs, and one New Year’s Day later, the volunteer project is over. In a ceremony to hand over ownership of the Tan Hoa houses, some of the new homeowners are moved to tears, while others are smiling, eager to start their new lives.

For the volunteers as well, the trip has been rewarding. “It was an amazing experience with the local people. The homeowners said thank you to us, and we also want to say thank you to them,” said POSCO Global Youth student Chang Ho Bin. “We are grateful they welcomed us into their lives. We hope they have a warm and happy New Year.”

What I learned from there is how we can true communicate with each other. It was really impressive to see kids in ‘home partners’ shy at the beginning but became friendly. Difference of language was nothing. Also, I’m very glad having participated in building their shelter.

–          Minji Kim

As a student in Hochi Minh City of Technology, it was great opportunity to participate in this activity. I was a bit worried about language problem and work itself, but all the friends from Korea were very kind and careful. I really appreciate their effort and will remember

–          Phan Cam Tu

Creating future business and pledging to strengthen global networks with the cooperation of ‘Steelworkers’

The ‘Steelworkers’ have led industrialization in Korea, and gathered at the ‘2014 New Year’s Steel Industry Gathering’ to plan harmony for the New Year.

On January 8^th at the POSCO Center New Year’s Greetings gathering, 200 attendees, including Industry, Trade, and Energy Minister Yoon Sang-jik, POSCO CEO Chung Joon-yang, and government, steel industry, academia, and research center, representatives pledged to overcome difficulties together through cooperation and take the current crisis as an opportunity to once again move forward.

Industry, Trade and Energy Minister Yoon Sang-jik emphasized in his New Year’s speech, “Despite external crisis factors surrounding our economy such as global economic stagnation, protective trade policies, and the declining value of the Japanese Yen in 2013, we were able to create a new paradigm internally focused on creative economy, convergence, and innovation. The steel industry has faced declining production and exports for two consecutive years, but must overcome its current crises and continue to lead Korean industry.”

Minister Yoon continued by presenting the three major tasks of Korea’s steel industry: △ develop steel materials requested by companies leading demand worldwide △ form a sound ecosystem through inter-industry cooperation △ implement the industries responsibilities by normalizing abnormal customs.

POSCO CEO Chung said in his greeting, “This year’s steel industry continues to face unbalanced supply and demand due to over-supply issues.

We will continue our efforts to make this year one of new forward momentum to break through external and internal crises regarding current macroeconomic and structural risks.”

He emphasized, “The steel industry must do its best to strengthen corporate competitiveness by securing steel materials technology and quality, and invest in R&D for convergence technologies between industries to create future business for the steel industry in order to overcome issues in the external and internal management environment. In addition, the industry itself must strengthen its global networks to overcome trade friction in an astute manner.”

At the Steel Industry CEO Gathering, Minister Yoon forecast that the coming several years represent an important period when the direction of the Korean steel industry can be measured, and requested that the government and industry gather its forces to overcome current difficulties.

POSCO opened 2014 as a year of innovation and opportunity with a powerful ceremony.

On January 2^nd, the first working day of the year, POSCO hosted its POSCO Family year-opening ceremony in the Pohang headquarters main conference hall, reflecting on 2013 and announcing the company’s mid- to long-term strategic directions as well as 5 core tasks.

The year’s opening ceremony included four portions, under the concepts of hope, global competitiveness pledge, advancement, and harmony.

400 employees and officials of POSCO, investing companies, external partner companies, and PCP suppliers gathered in the main conference hall at Pohang headquarters and the Gwangyang Innovation Center for the year-opening ceremony and pledged a committed beginning. The ceremony was broadcast live on Television and webcasts.

The hope portion began with an opening video for the year of the horse. The video discussed the meaning of 2014 coming 120 years after the Political Reforms of 1894, emphasizing how the Chosun people’s wisdom and innovation form the roots of the rich and powerful Korea of today. The motivating power to survive in a global management environment focused on a passion for assisting Korea through steel production, POSCO’s founding spirit, and the spirit of innovation that is not satisfied with the successes of today.

In the global competitiveness pledge portion, New Year’s wishes for POSCO Family employees were shown, along with interviews with employees who participated in the POSPIA 3.0, Indonesian integrated steelworks, and FINEX Plant 3 projects that contributed to securing POSCO competitiveness.

The advancement portion aimed at encouraging a strong commitment to forward momentum following the spirit of the blue horse, and began with a big drum performance followed by a reflection on 2013, this year’s management principles, and the 5 core tasks.  POSCO did not rest on its laurels as an ‘overall material and energy company’ last year, but maintained a profitability gap with major competitors despite global economic stagnation and over-supply, and was selected as the world’s most competitive steel company for the fourth consecutive year.  As POSCO does not settle it predicted that 2014 would be a year of low-growth structure just as 2013, setting a mid- to long-term strategy for ‘maximizing profitability’ and ‘strengthening core competitiveness.’ The 5 core tasks selected were: profitability-based project execution, global business risk management, early leading project fostering, the securement of soft competitiveness suited to a creative economic era, attainment of a safe and encouraged POSCO Family.

CEO Chung Joonyang delivered his best wishes to employees on achieving satisfactory management results despite the difficult management environment and noted that the company attained great results as an overall material and energy company through projects such as completion of the first integrated overseas steelworks.  CEO Chung emphasized in particular that all employees should join together with one heart and mind to ensure premium global competitiveness and profitability.

Prior to the event, CEO Chung Joonyang visited Pohang Steelworks Steel Manufacturing Plant 3, Cold-rolled Plant 1, and the STS Annealing Pickling Plant to encourage employees.

 Juseong Kim manha@posco.com

I’m pleased to greet the new year in 2014 with a bright heart together with all POSCO Family employees.

One and all, I would like to express my love and appreciation for you and all you do! I wish you all the best in the New Year.

I want to thank our whole Family of employees for their commitment in coming together and achieve great results despite the current difficult management environment. We have undergone a period of great difficulty including severe cold, but marked a milestone in building a global POSCO with the completion of our first integrated overseas steelworks, and advancing in various investment projects to evolve as an overall materials and energy company, attaining great results through flawless preparation despite the difficulties.

All this has been thanks to the drive and commitment that everyone brought together. Once again, Thank you.

The core message for our New Year’s presentation hosted in honor of 2014 is, “Focus on attaining premium global competitiveness and profitability!” It may be an overwhelming on the first day of the New Year, as it tasks us with moving forward full steam ahead, but objectively accepting such a situation also reflects confidence.

I have no doubt that we will successfully implement our fatefully given tasks as they come, amidst both the crises and opportunities, with determined confidence and a tradition of accomplishment as a Family.

The core 2014 Family tasks are defined in five areas, all of equal importance. POSCO’s future will be determined according to whether or not we accomplish these tasks.

Succeeding amidst difficulty is said to reflect true ability. I believe this will be a year where all our Family employees show the deep resources that hold within their hearts, to implement our core tasks with dedication.

Dear POSCO Family employees, let us make this year one in which we show forth our true abilities.

And, finally, may there always be health and joy for all of you and your families. I wish you all happiness.

My love and appreciation extend to you all.

2014. 1. 2.

CEO Chung Joonyang

This is my first commitment for the Global Storyteller project. I present to you, POSCO South Asia’s very own “Songkran” festival in Thailand!

For those who don’t know much about Thailand, we celebrate Thai New Year called Songkran on April 13th. The festival is widely celebrated not only in Thailand but also in several Southeast Asian countries like Laos, Cambodia, Myanmar, and Sri Lanka. Songkran is a national holiday in Thailand, and it’s also an occasion for family re-unions. Traditionally, Thai people perform “Rod Nam Dum Hua” ritual on Songkran day. During the ritual, the young pour fragrant water into their elders’ palms as a gesture of humility and respect, and also to ask for their blessings.

On April 12th, all Korean directors and Thai staff in Bangkok office gathered around President Kim Sun Won’s office, wearing Songkran festival shirts. Traditionally, flamboyant outfit is worn for the festival to add extra excitement for the traditional “Rod Nam Dun Hua” ritual.

President Kim was the eldest member in the office and we poured fragrant water into his palms with our warmest blessings. In return, Mr. Kim gave well-wishing remarks and appreciations back to the staff. It was a charming moment as everyone in the room was smiling at each other with joy.

It was a truly good opportunity for POSCO South Asia’s local and Korean staff to exchange our thoughts and cultures through this pleasant event, hosted with the courtesy of POSCO’s global mindset. Most importantly, we have developed a firmer relationship among the members of POSCO South Asia.

All of POSCO South Asia members would like to extend our warm wishing to all POSCO members around the world. Happy Songkran

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About “Songkran” and “Rot Nam Dam Hua”

“The Songkran” festival is celebrated from April 13th to 15th in Thailand and in many other countries in South and Southeast Asia as a traditional New Year’s Day.

“Rot Nam Dam Hua” is a traditional way to celebrate the New Year with the elder by pouring fragrant water into their hands. Most Thai people go back to their hometowns to meet their elders during the festival.

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