Posco chief stresses innovation for survival at CEO forum

Posco Group Chairman Chang In-hwa underscored the urgent need for a "future-oriented strategy," during his address to executives at the 2024 Posco Forum, which took place at the Posco Global R&D Center in Songdo-dong, Incheon on Tuesday.

Now in its sixth year, the theme of this year’s forum is "Navigating Crisis, Innovating for Future." Some 100 executives from the group's affiliated companies will convene for two days to gain insights from external experts and discuss ways to foster innovation within their organizations.

"We must calmly analyze our current situation and innovate to ensure our survival and growth," Chang said. "It’s essential to maintain a sense of urgency; without innovation, the group risks stagnation. We need to balance our perspective on crises and opportunities while establishing strategies for future preparedness."

The chairman emphasized that business innovation can enhance success by reinterpreting and restructuring existing business models, highlighting the importance of objectively assessing the group’s capabilities and resources.

Chang also urged all executives to build trust with internal and external stakeholders through thoughtful communication, fostering an open consensus on future innovations through sincere dialogue with employees.

For the forum's keynote address, Mark Leonard, director of the European Council on Foreign Relations, analyzed US-China hegemony, the upcoming US presidential election, the Russia-US conflict and tensions in the Middle East, exploring their implications for businesses.

During the business sessions, Yoshifumi Uesaka, deputy editor-in-chief of Nikkei Business, focused on the turnaround of Nippon Steel Corporation, which previously faced significant deficits, and analyzed what implications it has for Posco to develop future strategies.

In the secondary battery materials sector, Kim Kwang-ju, CEO of SNE Research, presented on the evolving ecosystem and breakthrough strategies within the industry. His analysis addressed technological advancements in the Chinese battery sector, the current state of the Korean battery industry, and the impact of electric vehicle adoption on material companies.

Earlier this year, Posco Group identified seven key innovation tasks aimed at enhancing corporate value and solidifying its position as a trusted leader in the steel industry.

Recently, the group has made progress in strengthening its competitiveness in the steel and secondary battery materials industries, including Posco’s supply of steel for the world’s first European Hyperloop Center test route and Posco International’s $40 million investment in a graphite mine in Tanzania. Posco Future M also secured a 1.8 trillion won ($1.3 billion) contract for high-nickel cathode materials for EVs.

By 2026, the group plans to implement 120 restructuring initiatives to address strategic misalignments, low-profit sectors and underutilized assets, with a strong emphasis on rapid execution.