Recently, POSCO proved its unrivaled steel material technology by becoming the first in Korea to obtain Korean Register (KR) certification for its new naval materials: high-ductility steel for naval vessels and armor steel for naval vessels. The application of these new materials is expected to drastically improve the performance of the Republic of Korea (ROK) Navy’s next-generation vessels. How were these steel plates, which withstand extreme water pressure and strong external impacts, born? We sit down with Lee Jae-ik and Lee Jin-woo, Principal Researchers at POSCO’s Steel Solution Research Group, to take a closer look at POSCO’s core competitiveness and future vision leading K-marine defense materials.

Lee Jae-ik: Hello. I research “application technology” to help our customers perfectly implement thin yet strong “high-strength steel” into their products. Recently, as reducing the weight of structural frames for carbon reduction has become a major topic, the demand for high-strength steel has increased significantly. However, as steel becomes stronger, welding becomes more difficult, and even after successful welding, the fatigue life of the joints often fails to match the strength of the steel itself. I solve this exact problem. My role is to dramatically extend the fatigue life of high-strength steel welded joints, providing optimal solutions so that customers can safely use lighter and stronger steel for a long time.

Lee Jin-woo: Nice to meet you. I am Lee Jin-woo, researching customized customer solutions at POSCO’s Steel Solution Research Group. Our group’s role does not end with simply making good steel. We provide a comprehensive “user manual” containing the optimal technology and guidelines so that the material can perform at 100% capacity at the customer’s site.

Currently, my main areas of focus are twofold. First is next-generation material solutions for land-based weapon systems and special vessels (surface combatants) that lead K-defense. Second is the heavy equipment and construction machinery sector. In particular, by applying the “extreme environment response technology” and “structural optimization know-how” accumulated in the defense sector to construction equipment, we create synergy to maximize the durability and efficiency of the equipment when our steel is applied. In short, my role can be described as a “technological bridge” that transforms raw materials into core components for high-tech industries.

▲ Conceptual rendering of a next-generation naval vessel applying new defense materials.

Lee Jin-woo: This KR certification is a decisive moment showing that the role of naval materials has evolved from simple “structural materials” to “core functional materials” that determine combat capability. It also demonstrates that Korea’s naval shipbuilding technology has entered a new dimension through material innovation. In modern warfare, where advanced weapons are becoming more sophisticated, the evolution of the hull that protects them is a necessity, not an option. POSCO’s new materials have secured both defensibility and mobility. By increasing elongation to 35% and impact absorption capacity by over 50%, we secured strong survivability, while reducing hull thickness by 30% to dramatically improve mobility and fuel efficiency. Our materials are completing the super-gap of K-defense as core functional materials supporting weapon systems. I am confident that this will serve as a solid foundation for POSCO to leap forward as a key partner in the global defense export market, going beyond being a “steel shield” for Korea’s next-generation vessels.

Lee Jin-woo: POSCO’s new naval materials are evolving in a direction to develop stronger and tougher steel materials so that submarines can operate safely deep under the sea. First, high-ductility steel, which applies technology that remains intact even when colliding with glaciers, stretches much better than conventional steel (35% elongation) while its capacity to absorb impact has become over 50% stronger. In addition, high-performance armor steel, which transplants solid ballistic technology from land-based weapon systems to the marine sector, maintains its strength while reducing the thickness of the steel plate by approximately 30% compared to existing ones. Reducing the thickness of the steel plate enables lightweighting of the hull, thereby improving both mobility and fuel efficiency. This advancement in material technology symbolizes a paradigm shift from structural materials to core functional materials, and will be POSCO’s core competitiveness to contribute to expanding K-defense exports and entering the global naval vessel market in the future.

Lee Jae-ik: Since they are used at sea, both general shipbuilding heavy plates and special steel for naval vessels require high reliability. However, the core purpose of the materials is different. General shipbuilding heavy plates focus on optimizing “economic efficiency and stability” according to the waves or temperatures of designated routes. On the other hand, marine defense materials, such as surface combatants and submarines, must perform operations in any ocean worldwide and survive extreme combat situations like shell hits or explosions. Therefore, they require the most stringent standards in existence. While general shipbuilding mainly uses “high-efficiency steel” with good work efficiency such as welding, marine defense uses “premium special steel” containing a large amount of special alloys to boast the highest level of strength and toughness. This is the biggest difference.

Lee Jae-ik: The pressure hull, which is the framework of a submarine, must maintain its original shape firmly without fatigue or cracking to protect the crew and sensitive equipment from intense water pressure, explosions, and impacts. To achieve this, steel must possess a combination of strength to withstand water pressure (yield strength), flexibility without breaking (elongation), impact absorption capacity (toughness), and ease of bending without heat (cold formability). Perfect welding that connects joints as strongly as the original steel plate and technology to eliminate post-welding stress are also essential.

For example, Japan’s Taigei-class submarines apply ultra-high-strength steel (NS110, yield strength of approx. 980 MPa) that withstands depths of 500 meters. The core technology here is overcoming the problem of reduced flexibility as steel becomes harder. On the other hand, Germany’s Type 212/214 submarines used “non-magnetic steel” that does not stick to magnets to avoid detection based on the enemy’s magnetic field, but because of the limitations in the material’s strength, their diving depth is limited to about 250 meters. Ultimately, for a submarine to survive intact in extreme crisis situations such as undersea collisions, torpedo evasion, or rapid surfacing, advanced steel materials that balance hardness and flexibility, along with reliable welding technology, must be supported.

Lee Jae-ik: To prove the reliability of submarine materials, we must go through three stages of evaluation. First, we quantify the basic alloy design and physical properties using fingernail-sized “micro-specimens.” Second, once the steel is produced, we manufacture “full-thickness specimens” to directly test the limits of strength and toughness of the base metal and welded joints. Finally, we conduct “structural mock-up testing,” assembling it similarly to an actual submarine shape. In this stage, we final-check residual stress generated during actual processing, fatigue life, and deformation during explosions. As a result, to develop a single steel material, hundreds of similar items are repeatedly verified double and triple, and only after passing this harsh process can we finally take responsibility for the submarine’s survivability.

Lee Jae-ik: That is the most difficult part of development. This is because a vicious cycle occurs where increasing the strength of the steel plate makes it weak against impact, and compensating for this warps the welding. POSCO is breaking through this difficult limitation with two innovations. We are researching to secure both strength and toughness simultaneously through advanced Thermo-Mechanical Control Process (TMCP) technology and fine microstructure control technology. Recently, technology that combines AI to find the optimal alloy ratio that captures both strength and toughness (flexibility) has been established. In addition, by package-developing the material and welding consumables as a single set from the beginning, we eliminated the trial and error of having to return to the starting point due to mismatching later, thereby dramatically shortening the overall development period.

Lee Jae-ik: Due to national security and diplomatic sensitivity, all technologies from design to operation in marine defense steel development are managed under strict security. Technology development is mainly carried out as national projects led by the Defense Acquisition Program Administration (DAPA), and the achievements belong to national assets. When a customer requests the development of general-purpose technology, development proceeds in the form of a “Joint Development Project (JDP).”

The most representative case is the “development of fatigue design technology for high-strength steel welded joints” project conducted in 2019 with Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) and the Korean Register (KR). The design was initially carried out by applying design technology transferred from Germany’s HDW, but we eventually pursued localization. Since then, the three organizations have cooperated to secure localized design technology. In the future, when localized welding materials and welding solutions are applied, it is expected that a self-production foundation for high-performance large submarines will be established.

Lee Jin-woo: POSCO develops next-generation naval materials by establishing an “Early Supplier Involvement (ESI) framework,” collaborating closely from the initial design stage with the special ship business divisions of the two major heavy industries, which are key communication channels for defense agencies. The KR certification of the newly developed materials was also achieved through collaboration with the Special Ship Business Division of HD Hyundai Heavy Industries and communication with defense agencies. Defense steel has the difficult challenge of simultaneously satisfying complex conflicting conditions such as protective performance, weldability, and on-site assembly alignment, beyond simple high strength. Therefore, during the collaboration process, we closely exchange opinions on manufacturing technology, component feasibility, special protective performance verification methods, and final specification (Spec-in).

This field-oriented, close technical exchange (Spec-in) allowed us to reflect the “reality of the field” early on, which is easy to miss in the laboratory, thereby compensating for the limitations of the laboratory unit early. Consequently, it is becoming a core competitiveness that overcomes the structural limitations unique to defense R&D, which usually takes more than 5 to 10 years, and enables actual naval application within a short period. POSCO proactively shared the operational concepts of weapon systems, coordinated required performance, and led the “simultaneous evolution of material and structural design.” This is a symbolic case showing why the current collaboration system is so important.

Lee Jin-woo: POSCO has established itself as a core foundation of the domestic shipbuilding and naval industries by proving global top-tier quality and mass production capability in the field of heavy plates for hull structures. In the field of next-generation special steel, we are continuing strategic challenges to surpass advanced military nations such as the US and Germany, which still lead in some areas. To this end, rather than simply chasing technology, we are pursuing a strategy to build “POSCO’s unique independent development model” where “material development, manufacturing technology, and vessel design” move like a single organic body by establishing a “close joint research system” with national defense research institutes and special ship design departments of shipyards. We believe that this value chain-integrated collaborative ecosystem will be the most powerful core competitiveness for POSCO to leap forward as a first mover leading the paradigm of next-generation naval material technology in the future.

▲ Conceptual rendering of a submarine. (Image source: my posco)

Lee Jae-ik: Analyzing the aspects of modern warfare, such as the recent war in Ukraine, the paradigm of future submarine steel technology can be summarized as “expansion of unmanned systems” and “extreme stealth” such as stealth performance. To apply to unmanned drones that will disperse the risks of manned submarines, a higher level of high-strength steel is essential, and neighboring countries like Japan are also secretly continuing to improve material performance. In response to this, Korea must also move toward developing “ultra-high-strength steel” that withstands deeper seas, larger hulls to increase weapon payload, and “high-strength non-magnetic steel” that fundamentally blocks the enemy’s magnetic detection in shallow waters. Ultimately, we believe that the high-functional special steel equivalent to or surpassing that of neighboring countries, and the advancement of welding and processing technologies to perfectly implement it, are the clear future directions we must preoccupy.

Lee Jae-ik: Ultra-high-strength steel, which completes the “stealthiness” that is the life of a submarine, has doubled in strength compared to 50 years ago, turning what was once a “dream material” into reality. The important point is that these cutting-edge defense technologies will expand to civilian industries in the future, such as lightweighting ships and reducing carbon emissions, serving as a solid foundation to lead the upcoming low-carbon, high-strength steel era. I will make sure POSCO plays a leading role in that.

Lee Jin-woo: I believe that material innovation has true value when applied in the field, rather than remaining as an achievement in the laboratory. POSCO has turned that value into reality through close collaboration with partners such as shipyards and research institutes, as well as research, production, quality, and marketing. Going forward, we will continue to enhance the competitiveness of next-generation naval materials based on accumulated technology and execution capability. I want to responsibly contribute to laying the foundation for Korea’s defense material technology and securing global competitiveness.

Hello, I am Kim Hee-hyun, a Pro in the Security Planning Department at POSCO DX. Our department plays a pivotal role in overseeing the company’s entire infrastructure, ranging from corporate security and network systems to data center operations. Beyond supporting the Security Management (SM) of our group affiliates, we work closely with our Security Operations Center (SOC) and penetration testing experts to prevent security breaches and information leaks. Specifically, I am responsible for penetration testing, where I identify and remediate security vulnerabilities across POSCO Group. I approach my work with unwavering dedication every day, striving to enhance system stability and protect our valuable data.

My journey into security began with an incident during my time as a server administrator. One morning, I discovered that a server had been rebooted without authorization, which made me realize that someone had breached our system. Feeling a strong sense of responsibility to protect our systems, I pursued various security-related activities and eventually moved to a specialized information security firm. However, I found that external consulting often focused on short-term assessments, which limited my ability to continuously advance and perfect security frameworks. As my thirst for deeper involvement in security grew, I found the perfect opportunity to join the Security Planning Department at POSCO DX.

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While both groups may use similar technical skills, their objectives, ethics, and procedures are fundamentally different. A white hat hacker is a security professional who, with formal authorization from an organization, identifies vulnerabilities based on real-world attack scenarios and provides solutions. Our ultimate goal is to prevent incidents and strengthen security systems. In contrast, black hat hackers engage in illegal activities—such as unauthorized access, data theft, or system sabotage—for criminal or financial gain.

Before any web-based service developed in-house—such as our main website or E-Procurement system—is launched, it must undergo a rigorous security vulnerability assessment. We meticulously check for any security loopholes. If a vulnerability is found, we submit a report to the development team, and once they have addressed it, we conduct a follow-up verification to ensure the issue is resolved. This process is repeated until all vulnerabilities are cleared, which is a prerequisite for the final service launch.

We screen for 26 types of vulnerabilities, including SQL Injection, Cross-Site Scripting (XSS), and file upload vulnerabilities. Beyond web applications, we also perform penetration testing for mobile apps and security configuration audits for infrastructure systems (Unix, Windows, network equipment, DBs, etc.).

Furthermore, we visit group affiliates, including POSCO Holdings and POSCO, to conduct on-site inspections. Since each affiliate has different business models and system scales, our focus areas vary accordingly. When we identify potential risks that could lead to hacking or data leaks and provide guidance on improvements, the local security teams often tell us how valuable our support is. I believe these activities play a meaningful role in elevating the overall security posture of the entire POSCO Group.

The core value lies in “prevention”—identifying and blocking risks before they manifest into problems. Security incidents can cause massive financial losses, service disruptions, and data breaches; therefore, eliminating potential threats in advance is the most efficient strategy.

By testing systems using the same methods as actual attackers, white hat hackers find the “doors” that intruders might use and provide ways to lock them. This process also helps uncover early-stage issues in corporate operations, policies, and organizational structures. In essence, white hat hacking is a strategic asset that safeguards a company’s financial value, brand reputation, and operational stability.

The greatest challenge lies in consistently delivering results that meet the high expectations of our stakeholders. As hacking techniques evolve daily, it is not easy for a limited team to master new technologies and apply them immediately to the field. To ensure we provide the top-tier expertise expected of us, we actively participate in technical seminars and external training to internalize these capabilities.

Recently, we have been working to shift the paradigm of our security operations by integrating AI. We are currently testing various ways to incorporate AI into our penetration testing and security monitoring processes to reduce time and costs while building a more seamless security framework.

I adhere to the principle of ‘thoroughness until I am fully satisfied.’ I believe that if you rush an assessment due to time constraints, problems are bound to occur. While it is not always easy to uphold this principle during peak periods due to various internal and external factors, I keep in mind that this rigor is the only way to truly prevent accidents.

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As closed-off factories of the past transition into smart factories, cyberattacks are no longer limited to simple data leaks; they can lead to massive operational losses, such as factory shutdowns or physical destruction. Therefore, digital security in the steel and manufacturing industries has become an essential safety mechanism that goes beyond data protection—it is now vital for “preventing factory downtime” and “ensuring the safety and lives of our field workers.”

The most critical competency is “practical problem-solving.” It is not enough to have technical knowledge; one must be able to identify the risks inherent in that technology and propose realistic solutions. If you aspire to be a security expert, you must develop a comprehensive mindset that allows you to grasp the technical essence of a risk and provide “actionable solutions” optimized for the organization’s business environment.

To grow as a white hat hacker or security expert, you need a solid understanding of overall IT infrastructure, including Operating Systems (OS), networks, and programming. Since the targets and services change constantly, you must also possess strong problem-solving skills and diverse practical experience. Relying on a single technology will eventually lead to a dead end. I recommend practicing with various hacking tools, participating in bug bounty programs, and staying updated on the latest security trends to cultivate flexible thinking and response capabilities.

Lastly, you need persistence and passion. Finding and fixing hidden vulnerabilities involves many failures. If you have the persistence and passion to overcome every challenge, you will surely become an excellent security expert.

POSCO Investment makes its first overseas CVC investment in the low-carbon steel sector

On April 28, POSCO announced the signing of a joint development agreement with Electra of the United States to develop low-carbon ironmaking technology.

Founded in Colorado in 2020, Electra possesses proprietary technology that produces solid iron by removing impurities from iron ore through electrochemical reactions. The company is currently constructing a pilot plant with an annual capacity of 500 tons, aiming for operation within this year.

Through this agreement, the two companies plan to combine POSCO’s direct reduction technology with Electra’s low-carbon ironmaking system to jointly verify technical and economic feasibility for commercial production.

“POSCO brings deep experience in steelmaking, production technology and process development,” said Sandeep Nijhawan, Electra’s co‑founder and chief executive officer. “We’re building for the long term, and this partnership helps us scale thoughtfully as we bring clean iron to more customers.”

Eom Kyeong-geun, Head of POSCO Technical Research Laboratories, explained, “This partnership through the joint development agreement aims for strategic synergy between POSCO’s proprietary direct reduction and engineering technologies and Electra’s innovative electrochemical process.”

On the same day, POSCO Investment also announced a CVC investment agreement with Electra.

Kim Keun-hwan, President of POSCO Investment, stated, “This investment marks our first overseas strategic CVC investment in the decarbonized steel sector. It holds special significance as a climate-tech investment in preparation for the era of decarbonization.”

▲ POSCO and POSCO Investment sign a joint development and investment agreement with Electra to collaborate on technical validation for commercial production. (From left) Eom Kyeong-geun, Head of POSCO Technical Research Laboratories; Sandeep Nijhawan, CEO of Electra; and Kim Keun-hwan, President of POSCO Investment.

Construction of an integrated steel mill in Odisha with an annual crude steel capacity of 6 million tons… Aiming for completion by 2031

A representative case of POSCO Group’s “Complete Localization Strategy” to preoccupy the high-growth Indian steel market

Establishing a “Virtuous Cycle Growth Model” where global profits fund domestic decarbonization transition investments

POSCO (President: Lee, Hee-geun) is embarking on a significant expansion of its global steel business by commencing the construction of an integrated steel mill* in India, a high-growth market with a population of 1.46 billion.

*Integrated Steel Mill: A steel plant equipped with the full range of processes, including ironmaking (producing molten iron), steelmaking (removing impurities), and rolling (producing finished steel products)

On the 20th (local time), POSCO signed a Joint Venture Agreement (JVA) with JSW Steel, India’s leading steelmaker, to build an integrated steel mill in India. This collaboration, built on a strong partnership between the two companies, aims to target high-profit markets within India and further strengthen the global steel supply chain.

The signing ceremony was attended by top executives from both groups, including Chang, In Hwa, CEO of POSCO HOLDINGS, Sajjan Jindal, Chairman of JSW Group, Lee, Hee-guen, President of POSCO, and Jayant Acharya, CEO of JSW Steel.

Following a direct meeting and Memorandum of Understanding (MOU) between CEO Chang, In Hwa and Chairman Sajjan Jindal in October 2024, the two companies solidified their cooperation through a HOA* in July 2025. With this final contract, the joint venture now enters the full-scale construction and execution phase. The joint venture is structured as an equal partnership, with each company holding a 50% stake.

*HOA: Non-Binding Heads of Agreement.

The new integrated steel mill will be blast-furnace-based, featuring a complete production system—from ironmaking, steelmaking, and hot rolling to cold rolling/galvanizing—capable of producing high-value-added premium steel. The facility will have an integrated production capacity of 6 million tons of crude steel. A site has been secured in Odisha, offering proximity to iron ore mines and efficient access to logistics, power, and infrastructure. The project aims for completion by 2031, following a 48-month construction period after groundbreaking.

Both companies are reviewing plans to combine POSCO’s low-carbon operational technology and Smart Factory capabilities with JSW’s renewable energy infrastructure to supply a portion of the plant’s power with renewable energy. Through this, they intend to establish a low-carbon production system that aligns with the “Green Steel Taxonomy” established by the Indian government in December 2024, the first of its kind in the world.

President Lee, stated, “Through this joint venture, we will combine POSCO’s innovative steelmaking technology with JSW Group’s strong local competitiveness. We are committed to creating future value and making a substantial contribution to the industrial development and economic growth of both nations.”

CEO Jayant Acharya commented, “This partnership with POSCO will serve as an opportunity to unite the vision and determination of both companies. We expect this to be a significant step in strengthening the Indian steel ecosystem and solidifying the national industrial value chain.”

The Indian steel mill construction project, a long-held ambition for POSCO, has finally come to fruition as the “Complete Localization Strategy” achieved tangible results following the inauguration of CEO Chang.

Since 2004, POSCO has explored entering the upstream sector in India on four separate occasions but faced challenges such as finding the right joint venture partner and securing land. However, the company successfully carried out downstream investments, including electrical steel and automotive steel sheet plants, and has accumulated extensive business experience in India by strengthening its partnership with the JSW Group, which owns India’s leading steelmaker.

A representative example of this robust partnership occurred in 2022 when the Pohang Steelworks was flooded due to Typhoon Hinnamnor. At that time, JSW Group readily provided POSCO with equipment originally being manufactured for its own hot rolling mill, significantly accelerating the recovery of POSCO’s No. 2 Hot Rolling Mill.

Driven by GDP growth, urbanization, population increases, and manufacturing expansion, India is a high-growth market where steel consumption has grown by over 10% annually in recent years. In particular, demand for high-value-added steel is expected to rise as the premium market for automotive and home appliances expands due to increasing incomes and a shift toward premium consumption patterns.

POSCO Group plans to directly overcome the crisis of global protectionism through its “Complete Localization Strategy,” which includes building the integrated steel mill in India, investing in the steel plant in Louisiana, U.S., and collaborating with Cleveland-Cliffs. Meanwhile, in Korea, the company is focusing on high-value-added products, transitioning to Intelligent Factories through the integration of AI and robotics, and developing Korean-style hydrogen reduction steelmaking to secure future growth drivers.

Notably, as CEO Chang mentioned in his 2026 New Year’s address, this investment is highly significant as it establishes a crucial bridgehead for a virtuous cycle: utilizing profits generated in global markets to fund decarbonization transition investments back in Korea.

▲ POSCO signed a Joint Venture Agreement with JSW Steel, India’s No. 1 steelmaker, on the 20th to build an integrated steel mill. (From right) Chang, In Hwa, CEO of POSCO HOLDINGS; Lee, Hee-guen, President of POSCO; Jayant Acharya, CEO of JSW Steel; and Sajjan Jindal, Chairman of JSW Group.

Establishing a Collaboration Model Between Workers and Humanoid Robots to Expand Physical AI to Heavy and Heavy Industries

POSCO Group is accelerating the adoption of physical AI in manufacturing sites by pursuing a project to apply humanoid robots to steel product logistics management.

On the 3rd, POSCO Group signed an MOU at the POSCO DX Pangyo headquarters with representatives from four companies: POSCO, POSCO DX, POSCO Investment, and Persona AI, to implement industrial humanoid robots in the field.

Under the agreement, POSCO will identify potential work sites at its steelworks and assess their feasibility. POSCO DX will design and build a robot automation system and jointly develop a steelworks-specific model. POSCO Investment will support the implementation of a Proof of Concept (PoC), a small-scale preliminary test of ideas and technologies to determine their practical feasibility. Persona AI will be responsible for the development and implementation of a humanoid robot platform tailored to the steelworks industrial environment.

POSCO Group and Persona AI have agreed to begin testing Persona AI’s humanoid robot business in the logistics management of steel coils produced at the steelworks in February. Unloading rolled coils weighing tens of tons requires crane operation. The humanoid robot will collaborate with field workers to attach the crane belt to the coils. This is expected to be an example of human-robot collaboration creating a safer work environment.

Logistics work involving handling coils weighing 20 to 40 tons carries a high risk of accidents and the potential for musculoskeletal disorders due to repetitive tasks. The deployment of humanoid robots is expected to address these issues. Since last year, POSCO Group has been considering the introduction of humanoid robots in terminal logistics processes, such as transportation and material preparation, considering the characteristics of heavy construction sites. If this demonstration process confirms the mechanical safety and collaboration potential of humanoid robots with workers, the group plans to expand their deployment and apply them to various logistics sites.

Persona AI is a US-based humanoid robot startup founded in 2024 by renowned robotics engineers and industry experts. Prior to this agreement, POSCO Group invested a total of $3 million in Persona AI last year. Combining NASA’s robotic hand technology with its own precision control technology, Persona AI is developing industrial humanoid robots capable of everything from assembling fine components to handling heavy loads.

To respond promptly to the industrial paradigm shift, including AX, POSCO Group plans to expand its Intelligent Factory initiative across its manufacturing sites and create a safe and comfortable, technology-based workplace.

▲ (From the second from the left in the front row, moving right) Kyuho Chung, Head of POSCO DX Strategy Office; Minseok Shim, President & CEO of POSCO DX; Nicolaus Radford, CEO of Persona AI; Geunhwan Kim, President of POSCO Venture Capital, along with business representatives, pose for a commemorative photo after signing a Memorandum of Understanding (MOU) at POSCO DX’s Pangyo office for the on-site application of industrial humanoid robots.

POSCO Group produces the core steel materials required to drive the global shift toward decarbonization. Through high-performance steel products and tailored solutions, the Group enhances safety, efficiency, and durability across industries including oil and gas, power generation, and renewable energy, contributing to the sustainable growth of the global energy sector. Here, we take a closer look at POSCO Group’s key steel products that are shaping the future of energy infrastructure.

Powering the Energy Transition with POSCO Group’s High-Performance Steel

The global energy landscape is undergoing a profound transformation. While technologies such as renewable energy, hydrogen, LNG, and CCUS continue to advance in pursuit of carbon reduction, it is advanced materials that ultimately enable these innovations to become reality. POSCO Group is supporting the advancement of next-generation energy infrastructure by providing steel engineered to perform under extreme environments and demanding conditions. From PosMAC, a high-corrosion-resistant alloy-coated steel used in renewable energy infrastructure, to steel forming the foundation of hydrogen pipeline systems, high-manganese steel recognized as a key material for liquefied hydrogen storage tanks, and LT-FH36, a core steel for LCO₂ carriers, POSCO’s high-performance steel products are applied across a wide range of energy transition industries, each tailored to specific application requirements.

Strengthening ESS Safety with PosMAC: A High-Corrosion-Resistant Alloy-Coated Steel

▲ PosMAC is used as a material for ESS battery cases developed by LG Energy Solution.

As renewable energy expands and power efficiency becomes increasingly important, demand for energy storage systems (ESS) continues to rise. Because ESS must store electricity safely and reliably over long periods, corrosion-resistant materials are essential. POSCO’s high-corrosion-resistant alloy-coated steel, PosMAC, is widely used in ESS battery enclosures, ensuring long-term stability and durability.

PosMAC offers more than five times the corrosion resistance of conventional galvanized steel, maintaining reliable performance even in coastal, high-humidity, and high-salinity environments. This durability helps reduce carbon emissions and overall lifecycle costs. As a result, PosMAC is extensively applied across renewable energy infrastructure, including wind turbine tower components, offshore wind structures, and solar module mounting systems. By extending equipment lifespans and reducing maintenance requirements, PosMAC plays a key role in driving the growth of sustainable energy.

Beyond ESS battery enclosures, PosMAC is expanding into a wider range of components, including racks and Battery Protection Unit (BPU) cases. Through close collaboration with customers, POSCO continues to enhance the product’s reliability and application range, reinforcing PosMAC’s position as a core material in the renewable energy industry.

Steel for Hydrogen Pipelines: The Foundation of Hydrogen Infrastructure

▲ Model of hydrogen pipeline steel exhibited at the POSCO Group booth at the 2025 International Climate Industry Expo.

Hydrogen is a cornerstone of future clean energy systems, requiring uncompromising safety throughout its entire value chain—from production and storage to transportation. In particular, pipelines transporting high-pressure gaseous hydrogen must resist hydrogen embrittlement* while maintaining reliable performance under extreme conditions.

*Hydrogen embrittlement: A phenomenon in which hydrogen penetrates a material, significantly reducing the ductility and toughness of the metal.

POSCO’s steel for hydrogen pipelines was designed to meet these stringent requirements. By replacing imported seamless pipes previously used for hydrogen transport, POSCO has enabled domestic production while offering strong cost competitiveness, supplying the product at approximately 70% of the cost of imported alternatives. The steel provides sufficient strength and toughness to withstand impact at temperatures as low as –45°C, not only in the pipe body (base material) but also at welded joints. After rigorous testing by international certification bodies, it has been confirmed to meet hydrogen pipeline performance standards, earning official recognition for its safety and reliability.

By 2025, POSCO plans to introduce high-strength materials compliant with API X70 standards for use in high-pressure environments of up to 100 bar. Demonstration and verification testing will be conducted in collaboration with Korea Gas Corporation (KOGAS), Korea Gas Safety Corporation (KGS), Korea Research Institute of Standards and Science (KRISS), and domestic steel pipe manufacturers.

*API (American Petroleum Institute): An organization that establishes international standards for pipelines and steel products used in the oil and gas industry.

Challenging –253°C: High-Manganese Steel for Liquefied Hydrogen Storage Tanks

▲ Model of high-manganese steel liquefied hydrogen storage tank exhibited at the POSCO Group booth at the 2025 International Climate Industry Expo.

Liquefied hydrogen (LH₂) is drawing global attention as a core technology for hydrogen transportation and storage in the hydrogen economy. Stored and transported at an ultra-cryogenic temperature of –253°C, liquefied hydrogen places significantly higher demands on storage tank materials than liquefied natural gas (LNG), which is handled at approximately –163°C. Against this backdrop, POSCO’s high-manganese steel is recognized as a key material capable of maintaining stability under such extreme conditions.

Independently developed by POSCO as the first of its kind in the world, high-manganese steel contains more than 22% manganese (Mn). It offers outstanding performance at cryogenic temperatures while offering a unique combination of high strength, excellent wear resistance, and non-magnetic properties that minimize electromagnetic effects. Its yield strength exceeds 335 MPa—approximately twice that of conventional stainless steel—while high elongation ensures excellent formability. In addition, relatively low manufacturing costs* contribute to its economic competitiveness. As a result, high-manganese steel is widely used in LNG infrastructure, including storage tanks, carriers, pipelines, and terminals.

*Manganese used in high-manganese steel is abundant worldwide and relatively inexpensive.

▲ Inside view of Tank No. 7 at Gwangyang LNG Terminal 2. High-manganese steel has been applied to the inner tanks of Units 5 and 6, and it is planned to be applied to Units 7 and 8 to be constructed in the future.

Over the past decade, POSCO’s high-manganese steel has proven its reliability through certifications from leading global classification and certification bodies. In 2022, the International Maritime Organization (IMO) formally adopted international technical standards governing its application, allowing the material to be used in cryogenic cargo and fuel tanks without separate flag-state approval. In 2024, it was further registered under standards applicable to both LNG and ammonia cargo and fuel tanks.

Building on its extensive experience in LNG infrastructure, POSCO is working to improve the performance of high-manganese steel so that it can reliably withstand impact even at –253°C. Going forward, the company plans to conduct demonstration projects and feasibility assessments through the fabrication of liquefied hydrogen storage tanks in collaboration with customers, aiming to secure both safety and economic viability for future hydrogen infrastructure.

Applied to the World’s Largest 22,000㎥ Vessels: Steel for LCO₂ Carriers

▲ AI virtual image of a liquefied carbon dioxide (LCO2) carrier.

Liquefied carbon dioxide (LCO₂) carriers are specialized vessels designed to safely store and transport carbon dioxide captured through CCUS processes after it has been cooled and compressed into liquid form. As the carbon capture and storage (CCS) industry continues to expand, the need for materials that support safer and more efficient vessel operations is becoming increasingly critical.

Unlike LNG and ammonia, which can be transported in liquid form under low-temperature conditions alone, carbon dioxide must be transported under both low temperature and controlled pressure. Scaling up liquefied carbon dioxide storage tanks therefore requires advanced steelmaking technologies.

POSCO’s LT-FH36 steel for LCO₂ carriers is engineered to maintain stable performance at temperatures as low as –60°C, reflecting the design conditions of low-pressure LCO₂ tanks. It can be applied in thicknesses of up to 50 mm and provides a yield strength exceeding 355 MPa. Even after post-weld heat treatment (PWHT), the steel maintains stable mechanical properties, ensuring long-term reliability in environments with elevated risks of corrosion and structural failure.

LT-FH36 is the world’s first steel to receive certification for use in large-scale liquefied carbon dioxide transport tanks. In 2023, at the international maritime exhibition Nor-Shipping, Lloyd’s Register (LR), a globally recognized British classification society, awarded POSCO official certification for steel used in large-scale LCO₂ carriers.

▲ The world’s largest 22,000㎥ liquefied carbon dioxide (LCO₂) carrier currently under construction at HD Hyundai Mipo. It uses POSCO’s LT-FH36 steel.(Photo source: HD Hyundai Heavy Industries)

LT-FH36 is currently applied to the world’s largest 22,000m³-class liquefied carbon dioxide carriers. In anticipation of the industry’s shift toward ultra-large storage tanks to improve transport efficiency, POSCO has also become the first in the world to complete the development and certification of LT-FH51, a higher-yield-strength steel grade. Over the longer term, the company plans to introduce even stronger grades, such as LT-FH70, further strengthening the safety and efficiency of next-generation LCO₂ carriers.

From PosMAC and steel for hydrogen pipelines to high-manganese steel and LT-FH36, POSCO Group’s independently developed high-performance steel products are delivering greater safety, efficiency, and sustainability across the energy industry. POSCO Group will continue to strengthen its materials technologies to help shape the infrastructure of the future global energy landscape.

*POSCO Korea Fellowship Scholar is a global leadership scholarship program that supports promising young talents from overseas to pursue master’s or doctoral degrees at prestigious graduate schools in Korea, covering full tuition and living expenses.

Hello, my name is Sena, and I’m from Türkiye. I was selected as a POSCO Korea Fellowship scholar in the fall of 2023, and I’m currently completing my master’s degree in Media and Communication Studies at Hanyang University. My research focuses on a comparative analysis between Korean dramas and their Turkish remake versions, exploring hybridity* and cultural proximity between the two cultures. I’m deeply interested in cross-cultural interactions and discourses through media, and I hope that my research will make a small contribution to the mutual understanding and exchange of cultural content between Korea and Türkiye.

*Hybridity: A concept referring to the phenomenon of different cultures blending to create a new cultural form.

I had always wanted to pursue my master’s degree in Korea since my undergraduate years. While researching various scholarships, I first came across the POSCO Korea Fellowship. However, I learned that usually only one student from Türkiye is selected each year, so there were times when I didn’t even dare to apply. Then, in the summer of 2023, I happened to see an announcement that the application deadline had been extended — and I gathered all my courage to apply.

Although I had been interviewed for other scholarships before, the POSCO Korea Fellowship interview felt entirely different. Rather than simply evaluating applicants, the interviewers genuinely tried to understand us, asking thoughtful and detailed questions. I still vividly remember the moment I received the acceptance email. I was on my way to work, and when I saw the message, I was so happy that I burst into tears and immediately called my friends. That day remains one of the happiest moments of my life.

Due to personal reasons, I wasn’t able to participate in many official events during the fellowship period, but the recent farewell event was truly meaningful for me. It was a great opportunity to learn more about POSCO and the POSCO TJ Park Foundation, and most importantly, to meet and connect with other fellows.

In past events, I was often the only Turkish participant, but this time, I was delighted to meet other Turkish fellows as well. I could really feel how much everyone had grown and accomplished over the past two years. It was a deeply touching moment — bittersweet, since it might have been our last gathering, but also filled with gratitude for the wonderful friendships I had formed through this program.

As an undergraduate, I majored in Korean Language and Literature and spent a semester in Korea as an exchange student. Experiencing the academic environment and campus life firsthand, I became convinced that I wanted to pursue my master’s degree in Korea.

I’ve always been fascinated by media studies, and I wanted to explore a field different from my undergraduate major — which led me to Media and Communication Studies. Korea, being one of the most advanced countries in the world in media industries such as drama, film, music, and advertising, provides an ideal environment for both academic and practical learning.​

After graduation, I hope to work in a Korean media company to gain hands-on experience and eventually contribute to cultural exchange between Korea and Türkiye. My long-term goal is to play a meaningful role in bridging the two countries through collaborative media and cultural projects.

I’m pursuing a master’s degree in Media and Communication Studies at Hanyang University, with a concentration in broadcasting and visual media. I believe media communication is an ever-evolving field that continues to expand in both depth and influence. To me, media is not just a tool for delivering content — it’s a lens through which we see the world and a window through which the world sees us. It has the power to connect people across physical distances, and I’m deeply inspired by how dramas and films can evoke meaningful emotions and even guide people through important moments in life.

Over the past two years, I’ve developed my own perspectives through various courses and experiences. I also worked as a teaching assistant for three semesters, which allowed me to gain a closer understanding of Korea’s higher education system.​

My research compares Korean dramas with their Turkish remakes. Although Korea and Türkiye are geographically far apart, they share surprising cultural similarities, and Turkish audiences have long shown great interest in Korean dramas and films. Many Korean works have been remade in Türkiye, and this phenomenon made me wonder: How can two distant countries feel so close? How do they influence each other, and what forms of hybridity emerge through this exchange? My study explores these questions through the lens of media and cultural theory.

My immediate goal is to complete this semester and successfully finish my thesis. I also hope to gain some internship experience in Korea — to apply my academic knowledge in a real-world media environment and understand the industry’s structure and workflow. After graduation, I would like to work in Korea for a while to build practical skills, and later return to Türkiye to work in the field of media and content exchange between the two countries. As someone who understands both languages and cultures, I hope to contribute to joint productions and cultural projects that bring Korea and Türkiye closer together — becoming a small but meaningful bridge between our two nations.

Goethe once said, “Everything is hard before it becomes easy.” Looking back on my own journey, I realize that every beginning was always harder than I expected. My graduate studies were no exception — at first, everything felt unfamiliar and challenging, but by putting in steady effort each day, I gradually adapted and started to see my path more clearly.

In my scholarship application, I wrote the phrase “After hardship comes happiness,” and I still believe that’s true. Sometimes you may feel like your efforts aren’t paying off or that you’re struggling alone — but all those efforts do accumulate over time. POSCO TJ Park Foundation truly sees the potential and light within each of its scholars. Believe in yourself and keep challenging forward. I sincerely wish you all the best in your journey!

The POSCO Korea Fellowship was a turning point in my life — it helped me realize a long-held dream that once felt out of reach. At a time when I had been trying for years without success, this scholarship gave me renewed hope, and from that moment, my life changed completely.

For the past two years, I have been proud to call myself a “POSCO TJ Park Foundation scholar,” and I will continue to carry that pride in the future. I live each day with deep gratitude, knowing that my achievements were not only the result of my own efforts, but also the trust and support I received from the Foundation.

When I read about POSCO’s founder, the late Chairman Park Tae-joon, I am often reminded of Mustafa Kemal Atatürk*, the founder and first president of modern Türkiye. Atatürk placed great importance on youth and education, saying, “Raise the youth well. Instill in them knowledge, culture, and sound ideals. Together with them, we will build a bright future.” I believe the POSCO TJ Park Foundation embodies this very vision — enabling people to achieve things that would otherwise be impossible alone. It is a foundation with profound meaning and purpose. I am forever grateful.

*Mustafa Kemal Atatürk: Founder and first president of the Republic of Türkiye.

​*This content was created based on an interview article by the POSCO TJ Park Foundation.

POSCO Group signs MOU with global raw materials company BHP for collaboration on HyREX hydrogen reduction steelmaking technology

Chairman Chang presents future vision for the global supply chain at APEC CEO Summit, based on Korea-Australia economic cooperation cases

On October 30, Australian Prime Minister Anthony Albanese visited POSCO’s Pohang Works, a company that represents economic cooperation between Korea and Australia.

This marks the first visit by an Australian Prime Minister in 22 years, since former Prime Minister John Howard in 2003, and serves as an opportunity for the two nations to further strengthen their future-oriented partnership across various industries, including resources, materials, and future energy.

Prime Minister Albanese toured the raw material pier at Pohang Works, where he observed the actual use of Australian iron ore and coking coal, and received a briefing on HyREX, Korea’s proprietary hydrogen reduction steelmaking technology.

POSCO Group began purchasing Australian iron ore in 1971 and has since used over 1.5 billion tons of Australian iron ore and coking coal — a symbolic example of Korea-Australia cooperation in the resources and steel industries.

Prime Minister Albanese stated, “Australia is one of the world’s leading resource-rich nations, a land of infinite opportunity where industries can grow through investment in critical minerals. Australia’s abundant resources will be a driving force for the global economy, and we will continue to expand cooperation with Korea.”

Chairman In-hwa Chang of POSCO Group said during his meeting with the Prime Minister, “Australia is a strategic partner with whom we are pioneering future growth industries, extending beyond steel to secondary battery materials and energy. I expect this visit to serve as a catalyst for strengthening trust between our two countries.”

Since its investment in the Roy Hill iron ore mine in 2010, POSCO Group has been promoting an HBI (Hot Briquetted Iron) production project in Australia as a low-carbon steel raw material initiative, and in 2022, it acquired Senex Energy to expand its natural gas business.

Prior to the meeting with the Prime Minister, POSCO Group signed a memorandum of understanding (MOU) with BHP, Australia’s leading global raw materials company, for R&D cooperation on the HyREX carbon reduction steelmaking process. Under the agreement, BHP will provide the iron ore feedstock and technical expertise required for the trial operation of the HyREX demonstration plant. POSCO Group plans to develop this cooperation into a successful example of climate change response jointly undertaken by a global steelmaker and a raw materials supplier.

Earlier in the day, Chairman Chang delivered a keynote speech at the APEC CEO Summit held at the Gyeongju Arts Center, under the theme “Connecting the Future: POSCO’s Supply Chain Partnerships for Shared Prosperity.”

He emphasized the importance of multilateral cooperation and solidarity in building sustainable and resilient global supply chains, which have emerged as a core agenda for the global economy. He also shared examples of strategic economic cooperation between POSCO Group and Australia over the past half-century, including strengthening raw material supply chains, co-developing low-carbon products, and transitioning to future energy.

Following the keynote, a panel discussion was held with Garry Korte, CEO of Hancock, and Omoto Masayuki, CEO of Marubeni, to explore solutions for global supply chain challenges from multiple perspectives.

On October 29, POSCO Group also hosted “POSCO Night,” inviting key business partners. Attendees included Simon Trott, CEO of Rio Tinto Group, and Zhu Wei, President of CATL ESS, who engaged in extensive exchanges with POSCO Group’s management to explore business cooperation opportunities.

▲ Australian Prime Minister Anthony Albanese visited the Pohang works on the 30th. Prime Minister Albanese and POSCO Group Chairman In-hwa chang agreed to continue expanding economic cooperation between Korea and Australia.

Among the tightening global environmental regulations aimed at tackling the climate crisis, the decarbonization of the steel industry is emerging as a critical task for building a sustainable future. POSCO Group is leading a new paradigm in the steel industry through its differentiated decarbonization strategy, which includes HyREX technology, carbon-reduction bridge technologies, and a transition to clean energy. This special feature takes a closer look at POSCO Group’s “2050 Decarbonization Roadmap” and its phased technology deployment strategies that will drive innovation in steel decarbonization.

Towards a Sustainable Future! POSCO Group is Leading the Decarbonization Transition in the Steel Industry

POSCO Group has established its “2050 Decarbonization Roadmap,” which lays out a comprehensive strategy to decarbonize its steel business, the group’s most carbon-intensive sector. The roadmap covers critical areas such as raw materials, investment, energy, and technological innovation. POSCO Group keeps driving its decarbonization journey forward through continuous monitoring and annual updates.

▲POSCO’s “2050 Decarbonization Roadmap,” which includes a comprehensive mid- to long-term strategy encompassing technology development, facility investment, raw material procurement, and energy procurement. [From the 2024 POSCO Holdings Sustainability Report]

Development of Carbon Reduction Bridge Technologies

During the transition to hydrogen reduction ironmaking, POSCO Group is striving to reduce carbon emissions through the parallel deployment of multiple bridge technologies, including the use of low-carbon fuels and raw materials, the introduction of large-scale EAFs, and CCUS demonstration projects. With intelligent factories powered by data and AI, POSCO Group is improving energy efficiency and ensuring a safer working environment.

① Blast Furnace-Based Carbon Reduction Technologies

The blast furnace, commonly referred to as a smelting furnace, serves as a core facility in steel production. Coal (coke) and iron ore (sintered ore) are fed into the top of the furnace and layered, while hot air is injected from the bottom, melting the raw materials to produce molten iron. To reduce carbon emissions from blast furnaces, improving the raw materials and reduction processes is essential. POSCO Group is advancing blast furnace-based carbon reduction technologies through three main methods: pellets, Hot Briquetted Iron (HBI), and hydrogen-rich gas.

Pellets are made by crushing and screening iron ore and shaping it into uniform spherical forms. These are used in blast furnaces as a substitute for sintered ore, which was traditionally used as ironmaking feed. Simply switching raw materials from sintered ore to pellets can reduce the amount of fossil fuels required in sintered ore production, thereby lowering the CO2 emissions intensity. In addition, pellets melt and are reduced more effectively at higher temperatures than sintered ore, which helps decrease coal consumption in the blast furnace.

Hot Briquetted Iron (HBI) is produced by removing oxygen from iron ore to make Direct Reduced Iron (DRI) and then compressing it into pillow-shaped briquettes, which are charged into the blast furnace. This method significantly reduces the amount of coal required for the reduction process. Assuming 100 kg of HBI are used to produce one ton of molten metal, approximately 100 kg of CO2 emissions can be avoided.

Hydrogen-containing gas method uses natural gas (NG), a low-carbon fuel, as a reducing agent instead of coal. The main component of natural gas, methane, is reformed into carbon monoxide and hydrogen during the reforming process, generating hydrogen-containing gas. This gas is then injected into the tuyere at the bottom of the blast furnace and used as a reducing agent, which helps reduce coal consumption. In the first half of 2023, POSCO installed a natural gas injection system for its blast furnaces and confirmed its carbon reduction effect. The company is also working with 29 industry–academia–research partners on the national R&D project COOLSTAR.* Based on this facility, POSCO is developing hydrogen injection technology for blast furnaces and plans to package it as a bridge technology to establish a low-carbon blast furnace model.

**COOLSTAR (CO2 Low emission technology of Steelmaking And hydrogen Reduction): A national R&D project led by the Ministry of Trade, Industry and Energy of Korea to develop hybrid steelmaking technologies that reduce CO2 emissions.

② BOF-Based low Hot Metal Ratio (HMR) Operation Technology
The basic oxygen furnace (BOF) is a facility that produces refined steel (ingot steel) by blowing oxygen into molten iron (molten metal) from the blast furnace to remove impurities and adjust the temperature and composition. Since more than 80% of the CO2 emissions generated in the production of one ton of ingot steel occur during the molten iron production stage, reducing the amount of molten iron used in the BOF is critical for cutting carbon emissions. POSCO Group is developing low Hot Metal Ratio (HMR) operation technology to lower the proportion of molten iron charged into the BOF. Let’s take a look at two representative technologies used in low-HMR operations.

The Melted Scrap Charging Method reduces the amount of molten iron used in the converter by blending molten iron from the blast furnace with ingot steel produced in the EAF. Since the EAF uses recycled steel scrap as raw material, its carbon emissions are significantly lower than those of the blast furnace. Therefore, by utilizing scrap melting and charging technology in the EAF, producing 2.5 million tons of molten metal annually is expected to achieve carbon reductions of up to 3.5 million tons compared to conventional blast furnace operations. However, because of the residual elements in scrap, there are limitations in manufacturing high-grade steel products. To address this, POSCO Group is developing a technology that combines blast furnace molten iron with EAF molten metal to simultaneously achieve carbon reduction and the production of high grade steel.

The Oxygen Top & Bottom Blown (OTBB) Converter Technology increases the amount of steel scrap charged into the BOF by injecting oxygen from both the top and bottom to secure additional heat sources. In BOF, no external heat is supplied; the heat required for steelmaking is generated by the oxidation of impurities in the molten iron. Therefore, reducing the amount of molten iron and increasing the scrap ratio can lead to a drop in molten iron temperature. By injecting oxygen not only from the top but also from the bottom, the Oxygen Top & Bottom Blown (OTBB) Converter Technology enhances secondary combustion and maximizes heat transfer efficiency, effectively overcoming this limitation.

In this way, POSCO Group has developed technologies to increase scrap utilization by leveraging its existing BOF facilities. By optimizing scrap charging practices and adopting a two-stage BOF process, the company has expanded the scrap ratio to over 30%. In addition, when applying POSCO Group’s proprietary FINEX molten iron in low Hot Metal Ratio (HMR) operation technology, the molten iron ratio (HMR) in the BOF can be lowered to below 70%, which is expected to significantly reduce greenhouse gas emissions in the ironmaking process. Through these measures, POSCO plans to respond in the short term to growing customer demand for low-carbon steel products before fully transitioning to decarbonized production facilities.

EAF-Based Low-Carbon Steel Production Technology

Building an EAF production system to respond to EU CBAM and customer demand for carbon reduction

To accelerate global decarbonization, prevent carbon leakage, and protect the competitiveness of its domestic industries, the EU plans to fully implement the Carbon Border Adjustment Mechanism (CBAM) starting in 2026. CBAM is a system that imposes additional costs (carbon taxes) on products imported into the EU based on the amount of carbon emissions generated during their production processes. In response to this international regulatory shift and increasing customer demand for carbon reduction, POSCO Group established a dedicated CBAM response team in August 2022. The company is actively collaborating with POSCO Europe and POSCO International to strengthen its response to CBAM.

▲To transition to a carbon-reducing production system, POSCO invested approximately 600 billion won in February of last year to begin construction on a large-scale electric furnace plant within its Gwangyang works with an annual capacity of 2.5 million tons. Full-scale operation is scheduled for 2026. The photo shows a panoramic view of the Gwangyang works.

In addition, to establish a low-carbon production system, POSCO Group began construction of an EAF plant capable of reducing CO2 emissions by up to 75% compared to conventional blast furnaces, with an annual capacity of 2.5 million tons at Gwangyang Works in February 2024. The facility is targeted to commence operation in 2026. By applying Melted Scrap Charging Method, the plant is also expected to enable the production of high grade steel, which was previously difficult to achieve with traditional EAF operations. Through this initiative, POSCO aims not only to actively respond to CBAM but also to ensure a stable supply of low-carbon steel products.

Development of Carbon Capture, Utilization and Storage (CCUS) Technologies

▲An exhibition model showing POSCO Group’s carbon capture, utilization, and storage (CCUS) technology process.

POSCO and the POSCO Holdings Future Technology Research Laboratories are developing a wide range of CCUS* technologies to capture and recycle CO2 emitted from steelworks, thereby reducing overall carbon emissions. Currently, CCUS technologies are being demonstrated through multiple approaches, among which three representative applications stand out.

*Carbon Capture, Utilization and Storage (CCUS): A technology that captures large volumes of CO2 emissions and either utilizes them directly for industrial purposes, converts them into higher-value products, or stores them permanently or semi-permanently.

CO2 Injection and Conversion Technology in Coke Ovens

The first approach involves separating and capturing CO2 generated from the steelmaking process and injecting it into coke ovens, where it serves as a heat source for by-product gas power generation. Since 2021, POSCO has been collaborating with Research Institute of Industrial Science & Technology (RIST) on a joint public–private national R&D project to demonstrate CO2 capture and conversion technologies. A demonstration test conducted at Pohang Works in January 2024 confirmed that high-purity refined energy is not required, and that medium-purity CO2 can be effectively injected into coke ovens.

The demonstration also showed an increase in the calorific value of by-product gas (COG, Coke Oven Gas) generated from the coke ovens. COG is used as an energy source for fuel gas, by-product hydrogen production, and high value-added chemical products, and higher calorific value directly enhances its utility. Recognizing these achievements, this coke oven CO2 injection and conversion technology was selected as one of the MOTIE’s Top 10 R&D Technologies, and received the Minister’s Award.

Development of Mineral Carbonation Technology

The second approach is to apply mineral carbonation technology. The POSCO Holdings Future Technology Research Laboratories is developing CCU technology that mineralizes captured CO2 for onshore storage or reuses it as construction material.

▲Participants pose for a commemorative photo at the launch meeting for the ‘Pilot Project for Land-based Carbon Dioxide Storage in Abandoned Mining Sites’ in August 2024.

In July 2024, POSCO Holdings was selected as the lead organization for the national pilot project “Onshore Storage of CO2 Using Abandoned Mine Shafts,” organized by the Ministry of Trade, Industry and Energy (MOTIE). This project is designed to react CO2 emitted from steelworks with steel slag to immobilize the carbon and produce carbonated slag at a scale of 300 tons, which is then backfilled into abandoned mine shafts. In November 2023, POSCO Holdings began operating a demonstration plant in collaboration with Samcheok. Based on this pilot project, POSCO Holdings aims to address the carbon storage shortage, a critical limitation of national CCS initiatives, and contribute to the decarbonization of the steel industry.

Phased Commercialization of CCS

The third approach is to gradually apply CCS technology. POSCO has been exploring the most suitable carbon capture technologies for various facilities including coke ovens, sinter plants, hot blast stoves and power plants by leveraging commercially available CO2 capture solutions. Based on these assessments, POSCO plans to gradually expand CO2 capture starting with the most efficient and effective facilities.

After being compressed, liquefied and purified, the captured CO2 gains the physical properties needed for transportation and storage. The processed CO2 is injected into saline aquifers or depleted oil and gas fields that have sealed geological structures, where it is stored permanently. The sealed geological structure means a formation where non-permeable rock layers overlie permeable sedimentary layers, blocking the gas and keeping it from escaping.

POSCO Group is exploring promising CO2 storage sites not only at the Donghae Gas Field but also in Southeast Asia, including Indonesia, and in northwestern Australia. In 2024, POSCO Group was selected for a program by the Export-Import Bank of Korea that supports feasibility studies for international emission reduction projects. Through this program, the company carried out a preliminary CCS feasibility study at PT. Krakatau POSCO in Indonesia. Based on the findings, the company plans to further develop its CCS application methods and gradually expand their use to domestic steel mills.

POSCO’s Hydrogen Reduction Ironmaking (HyREX) Technology

▲POSCO’s HyREX hydrogen reduction ironmaking technology, displayed as a model at the 2024 Climate Industry International Expo.

POSCO is Securing a Low-Carbon Iron Ore Supply Chain through Fluidized Bed Reduction Furnaces

Hydrogen reduction ironmaking is a process that reduces greenhouse gas emissions in the ironmaking process by replacing the reducing agent and coking coal traditionally used to remove oxygen from iron ore with hydrogen. POSCO is developing hydrogen reduction ironmaking based on the fluidized bed reduction furnace technology of its already commercialized FINEX process. Unlike the shaft furnace method commonly used by overseas steelmakers, the fluidized bed reduction furnace has distinct differences in terms of raw material and equipment technology. Shaft furnaces require high-grade DR-grade pellets processed into uniform spherical shapes as raw materials, whereas fluidized bed reduction furnaces can directly utilize ordinary iron ore fines from mines without any additional processing, offering a clear cost and operational advantage.

Of the world’s total iron ore supply of 1.7 billion tons, DR-grade pellets account for only about 4%. This limited supply makes it difficult to meet global steel demand. If hydrogen reduction ironmaking is fully commercialized, competition for pellets is expected to intensify among overseas steelmakers that use shaft furnace technology.

In this increasingly competitive environment, POSCO Group has a strong advantage: by adopting the fluidized bed reduction furnace method, it can use iron ore fines directly from the mine without additional processing, which keeps production costs relatively low and improves raw-material security. In terms of equipment technology, the fluidized bed reduction furnace also allows easier temperature control than shaft furnaces. POSCO’s fluidized bed reduction furnace-based FINEX process, which incorporates hydrogen injection and direct reduced iron (DRI) production technology, is regarded as the most competitive technology in hydrogen reduction ironmaking.

Pushing for HyREX Commercialization by 2030

In 2021, POSCO Group initiated the permitting process to prepare 1.35 million square meters of land at its Pohang Works for the construction of a hydrogen reduction ironmaking plant. In July 2022, POSCO signed an engineering collaboration agreement with Primetals Technologies, a company with extensive experience in FINEX plant design. Based on this agreement, the two companies are jointly designing the main facilities of the HyREX demonstration plant and plan to construct a pilot facility with an annual capacity of 300,000 tons at Pohang Works.

POSCO Group aims to develop and complete the commercialization technology for HyREX through a demonstration project by 2030. Once national infrastructure, policy and institutional frameworks are in place, and market acceptance is secured, the company plans to gradually convert its existing blast furnace facilities to HyREX facilities.

Strengthening Global and Domestic Cooperation Networks for Hydrogen Reduction Ironmaking Development

Hydrogen reduction ironmaking has been recognized for its strategic importance to national security and the national economy. In January 2024, it was designated as a national strategic technology in Korea. In May 2024, “Development of Optimized Iron Ore Technology for Korean-type Hydrogen Reduction Ironmaking” (Steel Sector) was selected as one of the Global R&D Flagship Projects by the Ministry of Science and ICT. Building on this strong domestic consensus, POSCO Group is preparing a Korean-type hydrogen reduction ironmaking demonstration project in conjunction with government R&D programs, with a target of achieving commercialization by 2030. The company is also actively participating in various international technology development collaborations to accelerate global decarbonization in the steel industry.

Since 2023, POSCO Group has been operating the HyREX R&D Partnership to accelerate the development of carbon-reduction technologies by moving beyond competition to collaboration with global steelmakers. A total of 19 related companies—including global steelmakers, raw-material suppliers, and energy firms—are participating in this partnership. The first conference was successfully held in November 2024. POSCO has also been collaborating with the World Steel Association (WSA) and Swedish steelmaker SSAB. In 2021 and 2022, the company led the Hydrogen Iron & Steel Making Forum (HyIS Forum), and since 2023, the initiative has been expanded into the Breakthrough Technology Conference, which is organized by the WSA.

▲Content embodying POSCO Group’s decarbonization vision is on display at the 2025 Climate Industry International Expo. POSCO Group is pursuing substantial carbon reduction and expanded clean energy transition through AI and bridge technologies, centering on Korea’s Hydrogen Reduction Iron and Steel (HyREX).

Encompassing hydrogen reduction ironmaking, carbon-reduction bridge technologies, and energy transition, POSCO Group’s diverse real options strategies are expected to play a key role in accelerating the steel industry’s journey toward decarbonization. POSCO Group will continue to advance its decarbonization efforts in the steel industry, driven by technological innovation and a clear strategic roadmap. Follow POSCO Group’s decarbonization journey toward a more sustainable future!