With the arrival of the spring, however, fine dust is sweeping across the country, and the public thirst for refreshing air is stronger than ever. At such a period, POSCO’s approach to creating a humble forest inside their steelworks is worth noting.

A forest inside steel mills? The connection between the two isn’t apparent, but POSCO is going above and beyond to maintain and expand the green space within their steel mills. Why?

Pohang Steelworks stands over old landfills near a seashore – not an ideal space for planting or growing trees. This challenging circumstance, however, didn’t stop POSCO from establishing a Green Zone outside the Steelworks from the early days of its establishment, and the company’s careful management of the area continues to this day.

Up until last year, Pohang Steelworks invested 44.2 billion KRW (approx. 39.9 million USD) for its afforestation project – Gwangyang Steelworks spent 28.3 billion KRW (approx. 24.87 million USD) for the same task. Through massive investment, systematic planning, and persistent management, POSCO transformed the area – first by building the steel mill in no man’s land; then by surrounding the mill with trees. Lots of trees. Now their steel mills, both Gwangyang and Pohang Steelworks, stand in the middle of forests.

l 350 Central Parks Inside POSCO Steelworks?

Walking around Pohang and Gwangyang Steelworks, one cannot miss the numerous evergreen trees with broad leaves. That’s because tree leaves could cause malfunctions for the steelworks facilities – with broad leaves, such occurrence is less likely.

Both in and out of the steelworks, it’s obvious the company thought through various ecological details. For areas prone to arsenic acid dust, the trees were cascaded over to shield off the dust. When designing landscapes, the team also looked into the underground piping system to make sure the pipelines do not interfere with the trees’ pathways.

POSCO spared no costs to green their mills – their meticulous afforestation effort was subsequently followed by equally, if not more, meticulous management. Their effort bore fruit in the form of hiked greenspace ratio. Now, the greenspace at Pohang Steelworks is about 2.2 million square meters, which is 24% of the mill’s total space of 9.5 million square meters. The greenery at Gwangyang Steelworks, twice the size of Pohang Steelworks, occupies 22% of its total space. Gwangyang Steelworks shares 4.69 million square meters of space with trees and forests out of its entire surface area of 21.35 million square meters.

With 1.93 million trees planted and growing at Pohang Steelworks and with over 5 million at Gwangyang, altogether 7 million trees are growing in both steelworks combined. To put that in context, the Central Park in New York City has about 20,000 trees. With 7 million trees, it’s as if Pohang and Gwangyang Steelworks are holding 350 Central Parks inside the mills.

POSCO’s afforestation project for their steelworks did not happen overnight, and it keeps on growing.

l 10 Times Bigger than Seoul World Cup Park

So the greenspaces at Pohang and Gwangyang are 2.2 million and 4.69 million square meters, respectively. These numbers alone don’t give us a palpable enough picture. How big are they exactly?

Using Seoul World Cup Park as a base point might be helpful. The Seoul World Cup Park is about 210, 000 square meters, which means, at 2.2 million, the greenspace at Pohang Steelworks is about ten times bigger – and Gwangyang, at 4.69 million, over 22 times.

Such vast spaces require careful management. At Pohang Steelworks, Administration & Public Relations Group is in charge of the space management, together with POSCO’s partner, DongWon. From DongWon alone, over 30 workforces are committed to managing 1.93 million trees planted across the 2.2 million-square-meter space. The employees are busy pruning, trimming and getting insect pests under control. Keeping the trees clean and washed is also part of their job. Nearly five trucks are mobilized to perform the task.

Dae-Hyung Lee, the Manager of Administration & Public Relations Group at Pohang Steelworks, says: “The workload can be enormous but invisible, which is why it gives us tremendous joy when people send us thank-you notes, no matter how big or small.

Dae-Sun Kim, DongWon Manager, also said: “It’s gratifying to notice the improvements at the steel mills and to know, what we do matters.” Lots of employees spend time in the parks managed by these ‘gardeners’ of the little forest surrounding the steel mills.

National Arbor Day or not, POSCO’s endeavor to keep the mills green never stops – POSCO’s effort to plant over 30,000 trees every year rewards both its employees and the community in the form of more green spaces.

Not everyone can plant trees, but everyone can take a moment to pay gratitude to the values the trees give us. Let’s plant that seed of gratitude in our heart.

Below, The Steel Wire speaks with Choi Jaeyong, Manager at POSCO’s Environment & Energy Business Department and currently a research fellow at the World Steel Association, to discuss sustainable manufacturing trends in the steel industry as well as the evolving automotive steel industry.

What are some of the most exciting initiatives taking place in the steel industry to combat greenhouse emissions and to create more sustainable production methods?

First, we must realize that one of the main causes of greenhouse emissions comes from using fossil fuels for the reduction of iron ore. Therefore, any ideas to improve this process and reduce the use of fossil fuels will also help reduce greenhouse gases. One of the most exciting initiatives taking place in the steel industry is replacing coke with hydrogen on a partial basis as a reduction agent. However, this is only effective if the hydrogen is produced by non-carbon energy sources.

[clickToTweet tweet=”“The sustainable life cycle of steel helps automakers recycle old automobiles into brand-new cars.” ” quote=”“The sustainable life cycle of steel helps automakers recycle old automobiles into brand-new cars.” ” theme=”style6″]

In addition to finding fuel alternatives for blast furnaces, advancements in smart factory technologies, such as AI and IoT, are also helping create more sustainable production methods while significantly enhancing the decision making process. For instance, the digitalisation of the control systems to reduce variations in process parameters has helped reduce energy usage as well as unexpected defects. Moreover, IoT can help employees at worksites by preventing industrial accidents with regards to machinery and equipment.

What do you think steelmakers should do to become more energy efficient?

First of all, steelmakers should work to achieve best-in-class operational standards across all processes. This includes improvements in engineering, operations, reliability, yield, health, and safety. Second, employees should stay up-to-date on the latest developments in steel production to ensure that advancements are shared utilized across the entire industry. Third, we must use collaborative and innovative R&D techniques to make improvements throughout all processes. POSCO is already practicing the first two very well while the third continues to be a priority for POSCO CEO Ohjoon Kwon.

I believe there is no one single solution for energy management; however, if those of us in the steel industry remain enthusiastic about finding creative energy saving solutions, new ideas will continue to arise and evolve.

From your experience working with POSCO’s energy management systems, can you tell us what POSCO is doing to become more energy efficient?

Pohang Steelworks is one of the most intricate modern steel manufacturing sites in the world. We continuously look for improvements throughout all processes including in the combustion, gas, corrosion, mechanical, instrument & measurement engineering practices, and statistical analysis techniques. If problems are found they are analyzed to eliminate and prevent faults or delays.

Also, at Pohang Steelworks, each facility has their own characteristics from raw materials to end products. Producing coke, sinter, and pig iron is a near continuous process, but producing steel is a batch process. Respective rolling mills have different rolling schedules and maintenance periods. Upstream processes, such as the blast furnace, have a fixed maintenance schedule. Why is knowing the characteristics of the process important? The processes create by-product gases and if there is a break in the use of the gases, the furnace will need to be flared once the gasholders are full. This has a significant impact on the emissions intensity for the site. Pohang Works uses many kilometers of pipelines and multiple power plants in order to utilize all the by-product gases and my role is to eliminate the flaring ratio and to operate energy facilities with high efficiency. The most important job is to maintain the facilities so that they are in good condition and can operate when needed.

Inside steelmaking plant of POSCO (Image courtesy of World Steel Association)

For sites like POSCO, energy needs to be viewed holistically to be able to create a balanced energy generation system, which helps avoid waste in gas & electricity. There is a project currently underway to build a new integrated energy management system that will help optimize energy use and prevent waste.

More and more automakers around the world are focusing on sustainability and emission reduction. What kinds of benefits can sustainable materials like steel bring to the auto industry? Also, what is POSCO doing to help automakers manufacture more sustainable vehicles?

Steel is better than alternative materials like aluminum and carbon fiber composites for various reasons. Properties of steel vary greatly but it’s always adaptable to making new products for different end products. When the electric arc furnace (EAF) melts steel, it can be formed into a new product without a loss of quality. On the other hand, other alternative materials composed of alloys at a lower temperature remain as molten alloys, and they require additional processing to separate the various elements from the original material, which cannot always be done without a loss of quality. For steel, this is not a problem. Also, because of the sustainable life cycle of steel, automakers can recycle old automobiles into brand new cars without a reduction in quality.

Additionally, by replacing conventional steel materials with advanced high-strength steels (AHSS), drivers can reduce fuel usage by as much as 5% and greenhouse gas emissions by 6%.

POSCO has developed numerous lightweight solutions to enable automakers to produce lighter, more eco-friendly products with no reduction in strength and durability. Using more sustainable materials like POSCO GIGA STEEL can bring numerous benefits to the auto industry as it offers automakers the ability to produce stronger cars with fewer emissions.

For more information on POSCO GIGA STEEL, take a look at the 6 reasons why POSCO GIGA STEEL is Ideal for both automaker and consumers.

Six employees from overseas affiliates of POSCO have set foot on Korean soil. They have come to take part in the Global Mobility Program (GMP), a job rotation program established by the POSCO headquarters in Korea.

As part of its effort to achieve an “Open & Collaborative Global HR,” POSCO started the GMP last year. The program is designed to train excellent local employees working in overseas affiliates. The P-grade employees, who are in leadership positions at their overseas affiliates and have high growth potential, were selected to learn more about POSCO’s unique working style through conducting projects assigned individually by each affiliate and carrying out actual work tasks in the Korean HQ for five months.

Through the GMP, POSCO expects to enhance work synergies by making use of the expertise and technologies specific to each country and affiliate. The overseas affiliates, in turn, will strengthen their business competitiveness by improving the professional competence of their local employees. They will also be able to access the working style of the HQ and develop their human network worldwide.

The participants for the first GMP in 2016 are six outstanding employees from five overseas affiliates: POSCO-China, POSCO-Mexico, POSCO-Maharashtra, POSCO-VHPC (Vietnam) and PT Krakatau POSCO (Indonesia). The two-week introductory training started July 4, and the program runs until the early December. POSCO has doubled the introductory period of the training, to better help the employees adapt to Korea quickly and improve the efficacy of the training.

During the first week of the training at POSCO Group University in Songdo, Incheon, they focused on learning the working style of POSCO HQ through assignments and studying the company’s history, the CEO’s philosophy, POSCO’s Enterprise Portal (EP), POSCO Total Innovation Methodology (POSTIM), report writing and gaining an understanding of the company’s different culture, all of which are required to settle quickly into their departments. In particular, the Korean language classes were well received, and the international employees appreciated learning useful terms and expressions for their jobs.

Participants received onsite training at Pohang Steelworks for five days starting on July 11.

Last year, it was just a field trip to the steelworks, but this year it was expanded into a training session to improve their understanding of the steel-making process and the site. In addition, theoretical lectures were also added to this year’s program, along with the field trip, so that participants can systematically learn the process of steel making. The onsite training provided the employees, who are neither production workers nor engineers, with an opportunity to experience the field beyond their own job role.

The GMP launched last year, evolving from POSCO’s Global Challenge, which operated from 2008 to 2011, to train and foster superior local employees. Through three sessions of the program last year, 23 overseas employees successfully learned the working style of the HQ in Korea.

POSCO plans to continue with the group-wide systematic HR training as part of achieving its concept of “POSCO the Great,” fostering future business leaders and experts who embody POSCO’s spirit.

The second session of the GMP will be held at the end of this year.

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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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POSCO was recently named by WSD as the world’s most competitive steelmaker for the seventh time in a row during the past five years. Apart from receiving credit for technological innovation and human resource management, POSCO has also been making continuous socio-economic and environmental efforts side by side with its stakeholders to create value and bolster mutual growth. The recently published 11^th annual sustainability report sums up these efforts. Let’s have a closer look.

About the 2013 Sustainability Report

[Download the 2013 Sustainability Report HERE]

First, the Report includes both financial and non-financial data.

POSCO and listed subsidiaries within the POSCO Family*, or those having more than KRW 1 trillion in sales are included in the consolidated ESG(environment, society, governing structure) data, which was verified by Samil PricewaterhouseCoopers.

Second, we report ‘Key Issues’ which have high ranks in the materiality test.

The report also includes specific information on the issues selected from the materiality test in order to include detailed information that the stakeholders want to know.

Third, we gathered the opinions of internal and external stakeholders and reflected them in the materiality test before publishing this Report.

Previously, there were some difficulties in reflecting stakeholders’ opinions because they were gathered in the course of preparing the Report. For this Report, however, we listened to stakeholders’ opinions from the planning stage and linked them to the materiality analysis process.

Fourth, we reported the cases of CSV (Creating Shared Value), ‘a management principle that seeks opportunity for business in solving social problems’.

We marked CSV cases separately within the contents describing POSCO’s management activities, including building a Saemaul Village in Ethiopia, training agricultural leaders in Mongolia, the Benefit Sharing Program, and Techno Partnership.

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Note: 2013 Sustainability Report further references

Reporting approach
The 2013 Report is based on the GRI (Global Reporting Initiatives) G4 guideline, ISO 26000, UN Global Compact, and POSCO’s unique report publishing process. The financial information reporting standards and definitions are based on the K-IFRS (Korean International Financial Reporting Standards.

Period of reporting
POSCO publishes the report annually. This Report contains information from January 1st, 2013 to December 31st, 2013. In some instances information up to April 2014 were included. The corporate governance section is based on the decisions made by the Board of Directors at the meeting held on March 14, 2014.

Scope of reporting
The Report contains the sustainability activities and performances of Pohang Steelworks, Gwangyang Steelworks, Pohang headquarters and the Seoul office. The ESG (Environment, society, governing structure) data covers POSCO and nine POSCO subsidiaries that are listed in the stock exchange or have more than KRW 1 trillion in sales. Information on shareholders, investors, and new green growth businesses cover the whole POSCO subsidiary.

Independent assurance
Assurance on this Report was conducted by Samil PwC, an independent assurance institution, in order to assure stakeholders on the credibility of the major data and publishing process of the Report. Assurance was conducted in accordance with ISAE3000 and AA1000AS Type II.

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POSCO 2013 Highlights

Why don’t we take a look at what efforts POSCO made during the year 2013, and their results?

[Click titles for details]

1. POSCO WINS THE ‘WORLD’S MOST COMPETITIVE STEELMAKER’ AWARD FOR 4 CONSECUTIVE YEARS!

On February 1, POSCO was named “The World’s Most Competitive Steelmaker” for the fourth time in a row. This was the result of the evaluation conducted by WSD (World Steel Dynamics) on 34 of the world’s steelmakers in 23 categories including production capacity, profitability, and technology innovation. POSCO had held the top position from 2002 through 2004, then was surpassed by Russian and Indian steelmakers, but regained top spot again in 2010 after 6 years, and has hence remained no.1 for 4 consecutive years.

2. POSCO RENOVATES WORLD’S BIGGEST FURNACE AT GWANGYANG STEELWORKS!

On June 7, after 108 days of repair works, POSCO held the blow-in ceremony for Gwangyang Steelworks’ No.1 blast furnace that was renovated as the world’s largest blast furnace. After its third enhancement made in 2013, Furnace 1’s volume now reaches 6,000 bigger than the previously world’s largest furnace (5,800) built by Shagang Group in China. The Gwangyang blast furnace applies a new cooling system, a production technology involving oxygen enrichment, and reduces fuel consumption by using high-temperature reducing gas efficiently, achieving a cost effective and environmentally friendly process.

3. DAEWOO INTERNATIONAL STARTS PRODUCTION AT MYANMAR GAS FIELD

On June 22, Daewoo International successfully began production at the Mya gas field, located in the northeastern sea of Myanmar. The Myanmar gas field project came in full swing when Daewoo International signed a PSC with the Myanmar Government. The gas produced was passed through the subsea pipeline, subsea production facility, and the production platform to check the gas production and treatment facility, and began selling to CNPC, a Chinese state-owned petroleum company from the gas selling location in Kyauk Phyu, west of Myanmar, since July 2013!

4. DECLARATION OF THE NEW ETHICAL MANAGEMENT PRINCIPLES

Celebrating the 10th anniversary of the proclamation of POSCO’s Code of Conducts, POSCO held a declaration ceremony for the New Ethical Management principle. The new principle, dubbed “Happiness Management” presents the vision “Let’s Come Together to Build a Better World!” and its 3 core values – future, common good, and win-win.

5. POSCO INCLUDED IN THE SUSTAINABILITY INDEX FOR NINE CONSECUTIVE YEARS!

For the first time in the steel industry, POSCO was included in the Sustainability Index by SAM-Dow Jones as a leading company for 9 consecutive years! In the 2013 evaluation, 31 steelmakers were evaluated, and POSCO received 77 points – 3 points higher than the previous year – and was selected as an outstanding company for the 9th consecutive year.

6. FIRST EXPORT OF FINEX TECHNOLOGY

On September 22, POSCO signed an MOA with state-owned Chongqing Iron and Steel Company, to construct a FINEX integrated steel plant. POSCO and Chongqing will each invest 50% in the joint project to build the FINEX integrated steel plant with an annual capacity of 3 million tons.

7. 1% FOUNDATION INAUGURATED!

POSCO’s 1% Foundation was officially inaugurated on November 18. The 1% Foundation was first started in October 2011, where executives and management-level personnel donated 1% of their salaries. POSCO and 26 POSCO Family companies participate in the campaign. The Foundation will implement sharing campaigns using the KRW 4 billion’s worth fund raised through donations during 2013 and the company’s matching grant.

8. INTEGRATED STEEL PLANT IN INDONESIA BEGINS OPERATION

On December 23, POSCO held the blowing-in ceremony for the 3 million tons/year blast furnace in Cilegon, Indonesia. Krakatau POSCO is expected to produce 1.8 million tons of slab and 1.2 million tons of thick plates annually. Krakatau POSCO will secure the domestic sales network which can fetch higher prices than exporting the products, and plans to sell 1.5 million tons of slab and 600 thousand tons of thick plates in the Indonesian market during 2014.

POSCO’s vision is to become a company “loved by the people and admired by the world.” As CEO Ohjoon Kwon promised in his foreword to this report, POSCO will fulfill its duties and obligations as a corporate citizen. As a company built upon the very wishes and aspirations of the nation, POSCO will remember that it is forever in debt to the people and act accordingly. From the endeavors in preserving biodiversity to sharing with those in need through the 1% foundation, POSCO’s corporate philosophy will always be about the betterment of humanity.Thank you.

Executive responsible for CR at Daewoo International

Please share with us your experience in applying to POSCO as well as your time here since then.

Pictured here: Young Choi at Daewoo International

In February of 1990, I graduated from university and started working at a bank but soon realized that this was not the path I wanted to take. One day I came across an advertisement on the first page of the daily newspaper.

It read, “Pohang Steelworks (the company name at the time) is seeking talented people. Do you think you are forward thinking and ambitious? Do you still think your career is a temporary state before marriage? How about joining Pohang Steelworks to build a better today for tomorrow?” I was immediately hooked.

Looking back, the ad was very cheesy but for women looking for career opportunities, the copy was right to the point. The fact that a steel manufacturing company wanted to help women with career advancement was very forward-thinking at the time. The ad successfully attracted over 2,000 applicants to take an entrance exam for 50 spots.

As I inherently had interest in advertising copy, after joining POSCO I became involved in business culture, PR, corporate image, advertisement planning, media relations and internal communications. I also gradually got involved in corporate social contribution activities as well.

I have focused much of my work on figuring out how to best deliver POSCO’s values in a way that resonates well with the general public. I have been responsible for advertising that captures the corporate brand visually. As difficult as figuring out the direction of ads is, I feel most satisfaction when I see that many people like the POSCO advertisements.

2005	2009	2012
“This ad integrates the symbol for steel ‘Fe’ into the word Festival to highlight the many cultural activities that POSCO is a part of. The site for the ad was at the Light Festival in Pohang so it makes the ad that much more meaningful.”	“The ‘$5 dollar bike’ features a stranger comforting a brother who wants to buy his younger brother a bicycle. So many people liked this ad that parodies of this were shown on a popular Korean comedy show.”	“Illustrated ad to revamp the overall corporate image to be more lively and sophisticated. The TV ad included the popular shuffle dance which was very well received!”

When did you feel the most satisfaction while working at POSCO?

Pictured here: Young Choi during a volunteer event

For those of you who have been at one workplace for a long period of time, the workplace becomes a large of your life. Since I joined the company, I have gotten married and also made a family. This has been possible thanks to the strong support system I have at the company.

At POSCO, I have made efforts to ensure that POSCO gives back to the community. When I see people relate and respond to POSCO’s CSR efforts, I feel much fulfilled. From TV ads to organizing a variety of POSCO concerts over the past 14 years, to creating schools in Zimbabwe, POSCO has been dedicated to communicating and giving back to the community. It is seeing the positive influence that POSCO is having on the community that makes me feel like my work is meaningful.

What are your main responsibilities in the CR sector at Daewoo International?

I am responsible for media relations, internal communication, advertising, CSR and external affairs. The work boundaries seem to be expanding as Daewoo International is the number 1 domestic trading company, so it must do a lot of global marketing and there are many issues to handle.

From entry level to executive, more on Young Choi’s career path

As a woman leader, we would like to listen to your views on strength of women leaders.

I believe that many women employees have strong responsibility skills. They are very good at seeing their responsibilities from start to finish. In addition, women have the ability to juggle and multi-task which is a great skill to have at the office. This skill of juggling allows women to not only care for work relationships in the office, but also to manage other relationships and respond to changing emotions.

What are some difficulties that women employees face and what is your advice to handle these tough situations?

Women employees need to think about work, marriage, birth, childcare so sometimes it can feel like a 3000 m huddle race. During this period, one needs to mature in the workplace and also adapt to family life. Huddle racers plan their races in advance and analyze the obstacles ahead. Likewise, it is important for women to plan 3 to 5 years ahead. I was not very good at this so I had moments of difficulty. I sometimes wish I had known to plan ahead. If one can paint the big picture, one can face the challenges and overcome them more easily.

What is your secret to finding work-life balance?

I think that time management is very important. Depending on how you use your time, the results will be very different. Using your smartphone calendar and notebook, create a to-do list and prioritize your tasks in order to manage your time wisely.

Please share your role as a female leader at Daewoo International

Daewoo was established in 1967, and placed South Korea on the world map through its management philosophies. Enduring the difficulties of the work out in 2000, Daewoo was incorporated into POSCO in 2010 and is pioneering the path for overseas resource development and reviving the business fighting spirit. It has been building synergy with other POSCO holding companies as well.

If POSCO can lead the steel industry with its strong organizational structure and management capabilities, Daewoo can be a trading expert company that makes connections to pursue new opportunities and be profitable.

Combining the strengths of these two companies, I want to create new business opportunities and more value. I’d like start with building transparency and improving communication so that Daewoo’s domestic and foreign businesses meet global standards. I would like you to say that at Daewoo, “Resources are finite and original ideas are infinite”.

What advice can you give for women employees?

My mentors told me that work life was a long-drawn-out battle so I should not suffer a big loss in going after a small game and instead go step-by-step…I want to give the same advice. In particular, teamwork in an organization is like a live creature that wriggles and moves depending on different circumstances. Within an organization, it is important to have an open heart to avoid becoming an isolated island by developing prejudices and not communicating properly.  One should always keep in mind that the part makes up the whole, the colleague or boss in front of me is my company, and everyone deserves to be treated sincerely. 

Do you feel more empowered after reading this post? Hope you enjoyed our second women leadership series featuring Young Choi. Please look forward to our next post!

The first person we would like to highlight is Yukyung Lee of POSCO M-TECH.

Executive responsible for marketing at POSCO M-TECH

Please share with us your experience in applying to POSCO as well as your time here since then.

After graduating from college, I was working at a foreign IT company when I saw a position opening for a female at POSCO. I recall there was an advertisement on the first page of the daily newspaper. At the time, the 1^st female recruitment announcement was a big issue as it was very rare for Korean conglomerates to recruit female employees and there were no past cases of women, regardless job function, being able to freely apply for jobs

Pictured here: A newspaper ad for  the 1^st recruitment of female employees at Pohang Steelworks

After joining the Department for Exports, I worked on exports for southeast Asia and I also moved to the Plant & Equipment Procurement Department and then to the Raw Materials Procurement Department.

What kind of company is POSCO M-Tech and what is your role there?

I am responsible for marketing at POSCO M-Tech.

POSCO M-TECH started as a steel packaging specialized company in 1973. Currently POSCO M-TECH produces the alumnium deoxider and molybdenum used for the steelmaking process as well as steel packing for Pohang and Gwangyang Works. In addition, it has been creating new growth momentum by operating plants for steel raw material such as magnesium plants and ferro silicon factories.

The marketing department has been responsible for raw material procurement and product sales. As such, you can consider this department to be responsible for the profitability of the company.

When did you feel the most satisfaction while working at POSCO?

I felt most satisfaction with my job when I received recognition for my hard work. While working in the Department for Exports, I had to consider how to receive real-time market information and utilize the network of trading companies in order to receive information on each of the different markets. As the system developed, today it has become what we call GIH (Global Information Hub) which is an internal information sharing system for POSCO. In addition, at the time of plant and equipment purchase, TCO (Total Cost of Ownership) was introduced so that purchases were not only based on price but also quality by creating a process that evaluated suppliers based on considerations of maintenance costs and other costs that arise while operating facilities

I felt the most satisfaction after receiving recognition for my efforts which led to increased profitability.

Superwoman who takes care of work and family! What is her secret?

What is your secret to finding work-life balance?

I got married and had a baby soon after joining POSCO so I had to get help from my mother-in-law and a housekeeper. I started to live together with my mother-in-law since the birth of my second child and gave full responsibility on the house chores to the housekeeper even though it was costly. As nurturing and housework were taken care by others, I naturally could concentrate on working and spent time with children during my spare time. For women pursuing their careers, I advise you to ask for help from those around you so that you can focus on making most of your talents and excelling at work.

At first, my children wanted their mother to be home, but as they grew older, they say they are proud to have a mother who has a profession. Especially, my elder child wants to become a person who is passionate about their work like me.

A few words for those who dream of becoming a woman leader! 

As a woman leader, we would like to listen to your views on strength of women leaders and what efforts you have done to be where you are today.

Generally, the woman in the family listens, is considerate, takes initiatives, and solves problems that arise between family members. These are the roles and qualities also required for leaders at work. If you see a family as a small organization, the mother’s leadership which involves listening, being considerate, taking initiatives, and solving problems, could be said to be the strength for women leaders in the workplace as well.

I also try to listen and consider various opinions of employees before saying my thoughts. When receiving reports I always ask for the opinions of the person in charge since there is no one more knowledgeable about the matters at hand than the person in charge. I think when leaders listen to employees, the employees are motivated to work harder, think more and propose better ideas.

In addition,  I think the initiatives of a leader influences the atmosphere of the organization, so I try hard to be efficient with my time by exercising in the morning and constantly working on self-development even after work. I hope I can be recognized by employees as a hardworking leader that is smart and realistic but also warm-hearted.

Please tell us about your plans for the next 5, 10 years.
I am currently working as the marketing executive for POSCO M-TECH and I would like to help grow the company to be a specialized, global materials company. My current work is focused on sales of Ferro Alloy like deoxidizer, molybdenum, etc.

Going forward, I would like to take on responsibilities beyond operation of POSCO’s ferrosilicon factories and magnesium factories to contribute to management as well. I also want to be able to inspire juniors by setting an example as a successful female leader in the steel industry.

Finally, please give a few words to women who are entering the work force!

First of all, I want to say “take a long-term view of your life.” When you first enter a company, you may be disappointed when you realize that not everything can be done with only passion. Because each organization is made up of a diversity of people, there are many unexpected issues that can arise and problems between internal and external bodies. Also it is possible to have to do work that is not necessarily always that meaningful.

Nevertheless, I don’t think you need to be too disappointed. It is through these experiences and conflicts, you are able to build your career and your unique strengths.

Grow your dreams and boldly take on those challenges. If you were tired of simultaneously taking care of children and doing work, ask for help from your family, friends or neighbors. And enjoy the work and responsibilities with passion.

I advise to work while keeping in mind what others around me and customers need. Most of all, work stamina is very important. You should always make time to take care of your health. That way, you can have an enjoyable work life.

Hope that Yukyung Lee is a source of inspiration for you. Please look forward to reading our next post for the POSCO Women Leadership Series!

This marked the first time in 40 years that POSCO began producing molten iron overseas since its first effort on Yeongilman Bay in Pohang. POSCO’s 40 years of devotion to steel has begun to make its appearance overseas.

Approximately 500 employees and government officials of both countries attended the ceremony. These attendees included the Indonesia president Yudhoyono, the head of Indonesia’s Ministry of Trade Hidayat, the Vice Minister of  Korea’s Ministry of Trade, Industry, and Energy Kim Jaehong, Korean Ambassador to Indonesia Kim Yeongseon, ASEAN Ambassador Baek Seongtaek, POSCO CEO Chung Joonyang, Krakatau President Irvan, client companies, construction companies, suppliers, external partners, and regional representatives.

In his congratulatory speech President Yudhoyono said, “I anticipate that Krakatau POSCO’s steel products, manufactured at these cutting edge facilities will both satisfy steel demand in Indonesia, and greatly contribute to economic growth and job creation.”

CEO Chung said, “The past 30 months of integrated steelworks construction was not an easy journey, but we have succeeded with the strength of Korean technology and Indonesia’s excellent manpower. Just as POSCO’s philosophy of serving its home country by the means of steel production became the basis for national economic development in Korea, I am certain that Krakatau POSCO will serve Indonesia in the same capacity.”

Krakatau POSCO was jointly established by POSCO and Indonesia’s state-run Krakatau Steel at a share ratio of 7 to 3, and boasts iron making, steelmaking, and steel plate production facilities. The company is capable of producing 1.8 million tons of slab and 1.2 million tons of steel plate.

Krakatau POSCO plans to reach positive operating profits in 2014, its first year of operation, through proactive market development and low-cost production technologies. The company will proactively secure sales networks in the domestic market where prices are higher than exports, and sell 1.5 million tons of slab and 600,000 tons of steel plate in Indonesia.
The company also plans to secure competitiveness in its early stages, through innovative cost reduction activities such as utilizing POSCO’s unique production technology which can employ low grade materials, and thus gradually utilize Indonesian steel ore in place of costly imported steel ores.

Over the course of the integrated steel works project, the POSCO Family companies in each field, including construction, power generation, and IT, gathered together to mark a new milestone in overseas steelworks construction. When the Pohang Steelworks was first built 40 years ago, POSCO had to solely rely on overseas technologies but it can now construct overseas steelworks on its own.

POSCO E&C was responsible for overall engineering and construction of the integrated steelworks including iron making, steelmaking, and steel plate production facilities, while POSCO Energy was in charge of constructing a steam power plant. POSCO ICT established the EIC engineering and IT integrated system, while POSCO CHEMTECH supplied a processing facility producing limestone furnace and coke byproducts. POSCO M-TECH built a factory to produce aluminum deoxidizers, necessary for molten iron production. Daewoo International will support overseas exports and domestic sales of the steel materials produced in Indonesia, as well as new resource development in Indonesia.

In addition, 248 Korean small and medium sized companies participated in the construction of the Indonesian integrated steelworks, setting an example for win-win cooperation between large scale and small and medium sized companies. These small and medium sized companies were thus enabled to be involved with advanced steel facilities and global capabilities via POSCO.

The necessary equipment for the steelworks was provided by 222 small and medium sized companies, including Taechang Machinery which provided equipment to custom cut steel plates according client requirements, and Hyundai Mechanic & Electric which provided electric power receiving and distribution facilities. Overseas on-site construction was carried out by 26 companies, including Dongjin and Daeah E&C.

Indonesia makes up a large market, with a population of 250 million, maintaining an average annual growth at 6%. The market has excellent steel consumption potential, as 12.5 million tons of steel are necessary for economic growth. However, Indonesia has mostly relied on imports, with annual steel consumption per person of 50kg, less than one-twentieth that in Korea. There are no quality and cost competitive steelworks in surrounding economic areas, including Vietnam, Malaysia, and Myanmar, thus ensuring further market potential for the steel industry in Indonesia. By commencing operations of the Indonesia integrated steelworks POSCO plans to complete a steel belt spanning China-Vietnam-Indonesia-India to target the Southeast Asian market, and continue to grow as a global steel company offering the world’s best competitiveness.

No Summer Can Stop Us at Pohang Steelworks and Gwangyang Steelworks

Regardless how hot it is out there, POSCO’s Pohang Steelworks and Gwangyang Steelworks continue pouring out hot molten metals. These are the photos of POSCO employees fighting against the hot summer with passion and spirit.

Han Woo-sik, of Material Quality Management Team, is removing scales at Pohang 4th Continuous Casting Area’s Correction Yard

 Employees from POSCO Family ‘Donghoo’ are focusing on scarfing on hot slabs

An employee at Pohang 3rd Wire Rod Factory gives a thumb-up while checking flaws on 200℃ hot coils

Kim Hyun-soo, Pohang Steelworks Main Maintenance Division, is operating a special welding in a mask and gloves

POSCO Family ‘Sejongro’ employees pose at Pohang 3rd Cokes Factory in heatproof gears and masks

Pouring molten metal into a cast at Gwangyang 2nd Continuous Casting Factory

An employee at Gwangyang 2nd Wire Rod Factory checks flaws on 500℃ how coils

To cool the unbearable heats from the weather and the facilities, POSCO is providing ice machines and cold water fountains at Pohang Steelworks and Gwangyang Steelworks. It is to protect POSCO employees’ health and safety from working at offices, control rooms and high temperature worksites.

How Our Employees Fight Face-to-Face With Summer Outside Steelworks

Pohang Steelworks’ in-factory refectory has been serving ‘Samgyetang,’ a tradition Korean chicken soup with ginseng, so our employees can ward off summer heat and stay healthy. On July 23rd, we also have shared red bean ice desserts with 189,000 employees of POSCO and outsourcing partners. During the feast, POSCO’s managing directors listened to the employees’ voices over any difficulties they are facing. This would be helpful for improving the working condition at the steelworks.

Kang Hae-won, PRTech, is smiling while having a bowl of hot soup at Pohang 1st Cold Rolling Factory

Employees at 4th Furnace Factory’s Iron Making Division are having watermelons

A Pohang Steelworks employee is wiping the face of his fellow employee from TCC Hanjin

On July 12th, Gwangyang Steelworks shared hot chicken soups, cold watermelons and red bean ice desserts with all factories to encourage the workers and to protect their health. The wives of Gwangyang Steelworks’ employees also joined to prepare the meals for their husbands working in this hot summer.

Employees at a shipping crane are given encouraging refreshments from a colleague at Gwangyang Steelworks’ Manufacturing Technology Department

Employees at Gwangyang Steelworks’ Chemical Division are wiping their faces near the hot-aired 5th Cokes Furnace

Employees at Technology Institute are having watermelons, prepared by their families

Gwangyang Steelworks’ employees at Iron Making Division are chilling themselves with ice-creams during the break

The wives of Gwangyang Steelworks’ 1st Steelmaking Factory employees prepare cold noodles for their husbands

The wives of Gwangyang Steelworks’ 2nd Cold Rolling Factory are serving cold watermelon salad to the employees

Employees are receiving medial consultations

During the hot season, the Health Promotion Teams in Pohang Steelworks and Gwangyang Steelworks provide travelling clinic service. From early July, the medical teams which consist of doctors, pharmacists, nurses and industrial hygiene managers, visit each workplace two to three times a week, and this will continue until the end of August.

It is truly impressive and we are in awe of the POSCO employees’ challenging spirits in this weather. We hope their morale was also boosted by the supports from their families and colleagues.

[Establishment]
POSCO on the basis of ‘Steelmaking Patriotism’

After the Korean War between 1950 and 1953, Korea was under severe damages in terms of its people, land and economy. The new community movement, or so-called Saemaeul Movement, from the late 60s embarked upon reconstruction of the nation to overcome poverty and economic difficulties. The 2nd Five-Year Economic Development Plan was introduced in 1967 and one of the top priorities was to build an integrated steelworks. Korea had neither capital nor technology to accomplish the mission but the challenge continued.

In 1965, then-President Park Chung-hee visited the U.S. and met President Poy of Koppers to discuss the construction of integrated steelworks. After the meeting, the plan became feasible and the Korea International Steel Association (KISA) was founded with seven companies from the U.S., the U.K., West Germany and Italy. Three years later, Pohang Iron & Steel Co., Ltd, was established.

[Construction of Pohang Steelworks]
Building a steelworks on a wild terrain of Young-il Bay

Geographically, Korea is not a perfect place to build steelworks. But it didn’t halt POSCO’s challenging and innovative spirit, which are still POSCO’s principles, from deciding Young-il Bay in Pohang as the home of integrated steelworks.

In April, 1970, the whole nation watched the groundbreaking ceremony with bated breath. With the roar of blasting powder, the construction of Pohang Steelworks, which will go down in history of Korea and its economy, began.

When the furnace first poured down molten metal into a cast, Park Tae-joon, the Founder and President of POSCO, and every personnel on the site cried out hoorays during the overwhelming moment.

The construction process was undertaken through four phases over 13 years of period. In 1983, it recorded annual crude-steel capacity of 9.1 million tons.

[Construction of Gwangyang Steelworks]
‘The Steelworks of Dream’ built on the sea

In 1970, sluggish global economy affected developed countries to cut down their steel productions. However, demands for steel soared in Korea given its economic development plans. Domestic companies started planning to construct the second steelworks.

Amid its rivals, POSCO, with the experience and technology the firm acquired from building the first steel work in Pohang, reclaimed the land from the sea and built Gwangyang Steelworks. The facility was designed with cutting-edge technologies such as automation and computerization of all the processes. It was indeed ‘the Steelworks of Dream’, aiming at the 21st century’s new environment.

[After Completing the History]
POSCO’s challenge to become the global leader continues.

After accomplishing the construction for annual crude-steel capacity of 20.8 million tons, POSCO lays the foundation stone of globalized operation by being listed on the New York Stock Exchange, for the first time as a Korean corporation in 1994. In December 1995, the company opens POSCO Center in Daechi-dong, Seoul and marks the beginning of yet other proud history for POSCO.

After tirelessly marching forward for prosperity of Korea and its economy, POSCO then enters into a new era. In order to enhance the organization’s specialty and efficiency, POSCO introduces a management commission and outside directorships. The moves later serve as a momentum of concreting POSCO’s advanced management system. Following the privatization in 2000, the company changes its name from Pohang Iron & Steel Co,. Ltd. to POSCO Co., Ltd. as we call it nowadays.

Since then, POSCO has continuously received the honors such as being named as one of the top corporations in Dow Jones Sustainability Indexes for 8 consecutive years. POSCO was also awarded as the most respected Korean company in 2012. As you can see, POSCO’s mission to create greater outcomes is on its course, not only in domestic market but at global level.

Notably, CSR activities in relation with regional communities and supports for multicultural families have been recognized with a great deal of attentions towards POSCO, the ‘beloved’ company. On the strength of development in brand value, POSCO was selected as the ‘the Most Respected Korean Company for 10 Consecutive Years’. The award illustrates POSCO’s overall management innovation in terms of enhancing the corporate’s image amongst the public. POSCO is also continuing its highly profitable earnings rate, highest in the field globally. According to an internationally renowned steel-making industry analysis agency, POSCO has been the world’s most competitive steel company for the past four years, ensuring its firm position as one of the global leaders.

Furthermore, amid the slumping financial performances of numerous steel making companies under sluggish global economy in last year, POSCO manufactured 37.99 million tons and sold 35.05 million tons of crude steel. Not only that, POSCO posted KRW 63.6 trillion in turnover and KRW 3.65 trillion operating profits. The operating profit of 7.8% rate is the highest figure in the industry and POSCO was capable of accomplishing the result through expanding the sales of high value-added products and cost reduction. With these successes, POSCO is successfully forwarding its medium-and long-term investment plans for future growth.

Keeping the pace with the Chief Executive Officer Chung Joon-yang’s declaration of management innovation last year, POSCO is planning to emphasize quality of development on the basis of profitability. By 2015, POSCO aims to increase the company’s capability of manufacturing crude steels up to 48 million tons globally as well as raising the capacity of domestic and overseas generation units to 4,474MW. In materials, POSCO is targeting to reach the KRW 8.2 trillion goal in sales to build a portfolio with profitability and growth for the future.

As we have witnessed, POSCO is an icon of Korea’s growth industry and driving force. Aside from the success of becoming the world’s most competitive steel manufacturer, POSCO will not be complacent and keep walking its own path as a major global corporation. So we ask for your continued support.

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December, 1965 – the Korea International Steel Association established

July, 1967 – City of Pohang selected as location for integrated steelworks

April, 1968 – Pohang Iron & Steel Co., Ltd. established

April, 1970 – Construction of Pohang Works Phase 1 begun

February, 1981 – Construction of Pohang Works Phase 4 completed (annual crude-steel capacity: 8.5 million tons)

March, 1985 – Construction of Gwangyang Steelworks Phase 1 begun

December, 1986 – POSTECH opened

October, 1992 – Integrated construction completed in time to celebrate a Quarter-century of Pohang Iron and Steel Co., Ltd. (annual crude-steel capacity: 20.8 million tons.)

December, 1995 – POSCO Center opens in Seoul

October, 2000 – Privatization completed

March, 2002 – Company name changed to POSCO Co,. Ltd.

May, 2012 – POSCO selected as the most respected Korean company

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