POSCO Holdings Inc. launched a new strategy to accelerate growth and strengthen shareholder returns over the next three years, as the South Korean steelmaker adapts to shifting market dynamics in its core businesses.
The company plans to achieve sales growth of 6-8% by expanding its high-margin steel products and battery materials operations while restructuring underperforming assets. Under the Value-Up Program announced December 23, POSCO committed to maintaining a minimum annual dividend of 2.3 trillion won ($1.8 billion).
The steel giant will reorganize around two main pillars – traditional steel production and battery materials – while exploring new growth opportunities. Management aims to improve return on invested capital to between 6-9%.
To boost shareholder value, POSCO will cancel 6% of treasury shares through 2026 and pay a basic dividend of 7,500 won per share, equivalent to 50-60% of free cash flow. The company has already canceled 2% of treasury shares this year and repurchased 100 billion won worth of stock.
Its trading arm POSCO International separately announced plans to double shareholder returns to 50% of profits starting in 2024. The unit, which joined the group in 2010, targets over 8% annual profit growth by expanding in energy and food while maximizing steel and mobility synergies.
