Why Does POSCO Exist?

The iron and steel civilization, which has lasted for 5,000 years, stands at a significant turning point. Carbon neutrality is transforming the very methods of steel production, while artificial intelligence is reshaping the principles of manufacturing competition. In this era of dual waves, what answers is POSCO, the cornerstone of South Korea's industry, preparing?

Recently, Jang In-hwa, chairman of POSCO Group, announced the "Triple Core" strategy at the CEO Investor Day, aiming to establish steel, strategic resources, and energy as the future's three pillars. This timely recognition of the need to diversify growth drivers beyond a steel-centric business structure is significant, pinpointing a crucial gateway that POSCO must navigate.

However, for this strategy to align fully with the future of South Korea's industry, one fundamental question must be addressed.

Why does POSCO exist?

Having spent 36 years at POSCO overseeing strategic planning in steel, construction, and trade, and directly managing the restructuring of the business portfolio as the head of the Value Management Office, I have closely witnessed the company's growth and crises. The conclusion I reached is clear: a company's strategy must start from "Why do we exist?" rather than "What will we do?"

What stood out in the recent announcement of the Southwest Mega Project, presented alongside business leaders like Lee Jae-yong of Samsung Electronics and Chey Tae-won of SK Group, was not the scale of individual corporate investments. Instead, it was the philosophy of how industries can transform the nation, revitalize regions, and open up futures for the youth. The strategy of leading companies in South Korea's industry is only completed when it is naturally connected to the country's future.

When the Pohang Steelworks opened in 1973, it was not just a steel mill. Its mission of "Steel for the Nation" enabled it to achieve what the world deemed impossible. What we need now is not to deny that mission but to expand it in line with the times.

Now, the question POSCO must answer goes beyond "How much steel will we produce?"

"How will we create a future for humanity with new steel?"

In my recently completed manuscript, "New Steel, Humanity's Future," I propose a new mission called "New Steel for Humanity." The reason for this is that POSCO's purpose should extend beyond becoming a better steel company to innovating South Korea's manufacturing industry with carbon-free steel and establishing new global standards.

When this philosophy is established, the Triple Core strategy gains even greater momentum.

First, Pohang and Gwangyang should be transformed into the world's first HyREX Green Steel Mega Project. This involves integrating hydrogen reduction steelmaking, clean power from nuclear energy, AI smart factories, EPC technology, and global standardization into a single national project. This could position itself as a project that redefines the future of South Korea's manufacturing industry, beyond POSCO's individual investment plans.

Second, the perspective of growing together with the region must be reinforced. Pohang and Gwangyang should evolve from production bases into green steel innovation cities where research and development, startups, universities, and businesses grow together. When young people can dream of their futures in Pohang and Gwangyang rather than just the capital region, POSCO's growth becomes intertwined with the nation's growth.

Third, POSCO must evolve from a company that sells steel products to one that exports South Korea's technology and industrial standards. By combining HyREX, AI manufacturing innovation, and the EPC platform, it can create the standard for carbon-neutral steel mills worldwide; this will be the ultimate realization of the Triple Core strategy.

From this perspective, the Triple Core strategy provides an excellent answer to "What will we do?" If it is complemented by the philosophical roots of "Why do we exist?" and "What kind of company will we become?" the strategy will gain much greater resonance and execution power. A strategy is completed when it starts with Why, moves through Who, and leads to What and How.

South Korea's steel industry stands once again at a historic crossroads. Just as the Pohang Steelworks led the country's industrialization in 1973, it is now POSCO's turn to lead the industrial revolution in the era of carbon neutrality and AI.

Beyond Steel for the Nation, to New Steel for Humanity. From a company that makes steel to one that shapes the future of South Korea and humanity.

Author's Key Background

△ CEO of POSCO Plantec △ Former CEO of Jeonnam Dragons, Head of POSCO Value Management Office △ Head of POSCO Innovation Planning Office △ Head of POSCO Future Strategy Group △ Head of POSCO Management Planning Office △ Legal Advisor at Law Firm Lin

* This article has been translated by AI.