POSCO DAEWOO President Kim Young-sang unveils the company’s business performances for 2017 as well as mid- and long-term strategies and action plans at an IR session targeting institutional investors at the FKI Center in Yeouido, Seoul, on Jan. 26. (Photos: POSCO DAEWOO)

POSCO DAEWOO President Kim delivers a speech at an IR session targeting institutional investors at the FKI Center in Yeouido, Seoul.

POSCO DAEWOO is reinventing its business portfolio with the goal of becoming a global integrated leader, moving beyond its traditional role as a general trading company. 

POSCO DAEWOO, with confidence it earned after recording its best-ever business performance, is accelerating efforts to not only focus on core businesses, but also nurture new growth engines, including food and technologies for advanced automobiles. 

At an IR session targeting institutional investors at the FKI Center in Yeouido, Seoul, on Jan. 26, POSCO DAEWOO President Kim Young-sang announced the company’s business performances for 2017 as well as mid- and long-term strategies and action plans. “A transformation in the business structure is essential to correspond to the business environment in which the conventional business territory is changing structurally in order to maintain continued growth,” he said. 

President Kim expounded mid- and long-term strategies ― a focus on nurturing strategic businesses and venturing into high profit-making businesses; advancing business models connected with investments; concentrating a foray into strategic countries; and securing the groundwork to enter the Korean market. 

A point of focus is a growth strategy to flesh out plans on two core businesses and the expanding of three other businesses. Core businesses are steel and natural resource development. In the case of steel, POSCO Daewoo plans to raise steel sales to 35 million tons by 2020 by ramping up synergetic businesses ranging from raw materials to trading, distribution and fabrication. The company will establish a steel tube distribution operation in the United States in the second half of 2018 to overcome U.S. protectionist moves. POSCO Daewoo will set up a steel distribution corporation in Myanmar and a stainless-steel fabrication center in Turkey to strengthen its presence in those markets. 

In resource development, POSCO Daewoo will establish an integrated energy network ranging from gas production to sales and gas electricity generation. As such, the company plans to establish an integrated “Gas to Power” business portfolio covering LNG trading, terminals, pipelines and gas electricity generation. 

POSCO Daewoo plans to participate in new projects to explore and develop about 10 mining blocks in the next five years so the company can become a leading global resource developer. The most important business POSCO Daewoo wants to expand is the food business. 

“We’ll nurture the food industry as a future core growth enigine with a sense of a mission of devoting itself of securing food security of the nation,” President Kim said.