POSCO Pushes Global Expansion to Navigate Safety, Tariff Challenges

[Korea Financial Times, Kim JaeHun] POSCO Group is accelerating its holding company-centered safety system and strengthening global investment.

This is evaluated as a hard-fought effort to overcome the group crisis of 'internal and external troubles,' including recent consecutive on-site safety accidents and U.S. steel tariff issues.

According to the industry, POSCO dismissed Lee Dong-ryeol, head of Pohang Works, on November 21 in connection with consecutive safety accidents and began preparing fundamental measures to prevent recurrence.
POSCO Group has been pushing to reorganize the safety management system, which was dispersed among affiliates, centered on holding company POSCO Holdings through the Group Safety Special Inspection TF directly under Chairman Jang In-hwa.

To this end, POSCO Holdings added Song Chi-young, CEO of POSCO E&C, and Lee Dong-ho, Safety Officer (Executive Director), both members of the Group Safety Special Inspection TF, as unregistered executives. This is interpreted as intending to operate the Group Safety Special Inspection TF not as a temporary organization but as an official organization.

This year, POSCO Group has been criticized for consecutive industrial accidents including a fall accident at an apartment construction site in Gimhae in January, structural collapse at the Shin-Ansan Line construction site in Gwangmyeong, a death at a mixed-use complex construction site in Daegu, a death at a highway construction site in Uiryeong, dust collector structural collapse at Gwangyang Works, and a traffic accident during subcontractor work at Pohang Works.

Continued safety accidents also affected POSCO Group's performance. POSCO Holdings recorded Q3 2025 revenue of KRW 17.261 trillion, operating profit of KRW 639 billion, and net profit of KRW 387 billion. Revenue decreased 5.8%, operating profit decreased 13.5%, and net profit decreased 22% year-over-year. This is analyzed as the impact of deteriorating construction sector performance due to the aftermath of the Shin-Ansan Line accident.

Criticism of POSCO Group has also intensified in political circles. President Lee Jae-myung directly mentioned POSCO E&C, a construction affiliate of POSCO Group, pressuring Chairman Jang In-hwa and POSCO Group.

In response, Chairman Jang In-hwa declared innovation of the company-wide safety management system in July and is focusing on internal stabilization. Chairman Jang stated, "I apologize for causing concern about safety issues," and "We will invest all the group's resources and capabilities to solve the root causes of disasters."

However, there are not only 'internal worries.' While internally focusing on improving group safety measures, external issues such as U.S. tariffs and supply chain management must also be addressed.

Although the Korean and U.S. governments recently agreed to reduce tariffs on automobiles and other items to the U.S. to 15%, they still maintain a high 50% tariff on steel products.

Additionally, Chinese low-priced steel offensives and European movements to strengthen import regulations on foreign steel continue.
Chairman Jang In-hwa is widening his global management stride, focusing on supply chain cooperation and localization of production systems. His economic diplomacy activities were prominent at the APEC site held in Gyeongju last month. At the APEC CEO Summit keynote speech, Chairman Jang emphasized the content and importance of multilateral supply chain cooperation under the theme 'Connecting the Future: POSCO's Supply Chain Partnership for Common Prosperity.'

Chairman Jang also solidified partnerships through a meeting with Australian Prime Minister Anthony Albanese, who visited Pohang Works. Chairman Jang personally guided Pohang Works and introduced the Hydrogen Reduction Steel (HyREX) pilot facility.

Prime Minister Albanese stated in a letter, "POSCO Group is an important partner of Australia, and it is an honor to see the operational site this time," and "The Australia-POSCO partnership has played an important role in the industrial development of both countries."

Active overseas investment is also underway. On November 12, Chairman Jang announced plans to invest a total of KRW 1.1 trillion to secure quality lithium resources in Australia and Argentina to strengthen raw material competitiveness for secondary battery materials.

Through this investment, POSCO Holdings will be able to stably secure 270,000 tons annually of lithium concentrate from Wodgina mine and Mt. Marion mine, global top-tier lithium mines operating in Western Australia.

This figure reflects the production capacity expansion plans of the two mines and is an amount that can produce approximately 37,000 tons of lithium hydroxide, enough for approximately 860,000 electric vehicles.

Chairman Jang emphasized, "To leap forward as the world's number one lithium company, securing raw material competitiveness is most important," and "We will diversify the global lithium supply chain through active investment."

Meanwhile, Chairman Jang received the 'James A. Van Fleet Award' in the United States on October 23, recognizing his contributions to private economic diplomacy. The James A. Van Fleet Award is a prestigious award given annually by The Korea Society to individuals or organizations who have made outstanding contributions to understanding, cooperation, and friendship between Korea and the U.S.

Kim JaeHun (rlqm93@fntimes.com)