Posco plans to split business to create holding company

Posco, Korea's top steelmaker, is planning to transform into a holding company by splitting it into two business entities, industry sources said Wednesday.

After the breakup, the steelmaking group's holding company will be focused on charting out future business, research and development, and investment, according to the sources.

The steelmaker's affiliates will be under the wing of the holding firm, they said.

The plan will be put forward for approval from the company's board next week.

Posco's plan came as its stock price has been in the doldrums despite its stellar business performance.

Posco, the world's fifth-largest steelmaker by output, reported earlier its third-quarter net profit reached 2.63 trillion won ($2.23 billion), more than five-fold from a profit of 510 billion won a year earlier, on robust demand amid the global economic recovery from the Covid-19 pandemic.

Operating income also more than quadrupled to a record high of 3.12 trillion won, and sales rose 44.7 percent on-year to reach 20.64 trillion won.

But after touching a yearly high of 413,500 won in early May this year, shares in Posco have been on a downturn, closing at 277,000 won Wednesday.

Yonhap