UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of September, 2023

Commission File Number: 1-13368

 

 

POSCO HOLDINGS INC.

(Translation of registrant’s name into English)

 

 

POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea, 06194

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒                         Form 40-F  ☐

 

 

 

POSCO HOLDINGS INC. is furnishing under cover of Form 6-K:

Exhibit 99.1: An English-language translated documents of POSCO HOLDINGS INC.’s Corporate Interim Report Q2 for the year 2022.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

				POSCO HOLDINGS INC.
				(Registrant)
Date: September 6, 2023		By		/s/ Han, Young-Ah
				(Signature)
				Name:  Han, Young-Ah
				Title:    Senior Vice President

Exhibit 99.1

 

 

INTERIM REPORT

(From January 1, 2023 to June 30, 2023)

THIS IS AN ENGLISH TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND NON-CONSOLIDATED BASIS IN ACCORDANCE WITH THE KOREAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS (K-IFRS) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

INTERIM REPORT

(From January 1, 2023 to June 30, 2023)

 

To:	Korean Financial Services Commission and Korea Exchange

 

/s/ Jeong, Ki-Seop

Jeong, Ki-Seop

President and Representative Director

POSCO HOLDINGS INC.

6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-54-220-0114

 

/s/ Han, Young-Ah

Han, Young-Ah

Head of IR team, Senior Vice President

POSCO HOLDINGS INC.

6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-054-220-0114

 

2

TABLE OF CONTENTS

 

I.		Overview
II.		Business
III.		Financial Statements
IV.		Corporate Governance

 

Attachment: Independent auditors’ review reports on consolidated financial statements

 

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I. OVERVIEW

1. Company Overview

POSCO HOLDINGS INC. (the “Company”, Former POSCO)¹⁾

1) Change of the company name : POSCO (the “Company”) approved the vertical Spin-off plan at the Extraordinary General Meeting of Shareholders as proposed on January 28, 2022 and therefore, the name of the company has changed from ‘POSCO’ to ‘POSCO HODLINGS INC.’ as of March 2, 2022.

The Company’s business scope is as follows:

 

Scope of Company’s Business

(1) To engage in holding business of controlling the business of, and guiding, organizing and improving the management of, subsidiaries by acquiring and owning the shares or ownership interests in subsidiaries (including sub-subsidiaries and companies controlled by such sub-subsidiaries; collectively “subsidiaries”);

(2) To engage in the management and licensing of intellectual property rights including brands and trademarks;

(3) To engage in the investment related to start-up assistance and new technology;

(4) To engage in market research, management advisory and consulting services;

(5) To engage in technology research and commissioned services;

(6) To engage in matters entrusted by subsidiaries to assist the subsidiaries’ businesses;

(7) To engage in the supply of gas such as hydrogen and resources development business;

(8) To engage in leasing of real estate and distribution businesses; and

(9) To engage in all other conducts, activities or businesses which are related, directly or indirectly, to the attainment and continuation of the foregoing purposes.

2. Business Organization

A. Highlights of the Company’s Business Organization

(1) Name of the Enterprise Group : POSCO HODLINGS INC.

(2) Location of the Headquarters : 6261 Donghaean-ro (Goedong-dong), Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

 

4

(3) Summary of consolidated subsidiaries

(Number of companies)

 

		Number of consolidated subsidiaries																Number of major subsidiaries
		Jan 1, 2023				Increase				Decrease				Mar 31, 2023
Listed			6				—				—				6				6
Unlisted			174				9				2				181				80
Total			180				9				2				187				86

 

*	The number of consolidated companies above does not include POSCO HOLDINGS

*	Among listed corporations, there is one overseas corporation

(5 domestic corporations and 1 overseas corporation).

*	Newly included : QS1, POSCO PS Tech, POSCO PR Tech, POSCO PH Solution,

POSCO GYS Tech, POSCO GYR Tech, POSCO GY Solution,

PT AGPA REFINERY COMPLEX, Port Hedland Green Steel Pty Ltd

*	Excluded subsidiaries : POSCO Energy, POS-CD PTY LTD

(4) Major Changes in the Board of Directors

 

Date of Change		Type of General Meeting of Shareholders		Appointment				Expiration of Term
				New		Re-appointment
March 15, 2019		Ordinary		—		Representative Director Chang, In-Hwa		—
				—		Inside Director Chon, Jung-Son		—
				Inside Director Kim, Hag-Dong		—		—
				Inside Director Jeong, Tak		—		—
				—		—		Representative Director Oh, In-Hwan
				—		—		Inside Director Yu, Seong
				Outside Director Pahk, Heui-Jae		—		—
				—		Outside Director Kim, Shin-Bae		—
				—		Outside Director Chung, Moon-Ki		—
				—		—		Outside Director Lee, Myoung-Woo
March 27, 2020		Ordinary		—		Representative Director Chang, In-Hwa		—
				—		Inside Director Chon, Jung-Son		—
				—		Inside Director Kim, Hag-Dong		—
				—		Inside Director Jeong, Tak		—
				—		Outside Director Chang, Seung-Wha		—

 

5

Date of Change		Type of General Meeting of Shareholders		Appointment				Expiration of Term
				New		Re-appointment
March 12, 2021		Ordinary		—		Representative Director Choi, Jeong- Woo		—
				—		Representative Director Kim, Hag-Dong		—
				—		Representative Director Chon, Jung-Son		—
				—		Inside Director Jeong, Tak		—
				Inside Director Chung, Chang-Hwa		—		—
				—		—		Inside Director Chang, In-Hwa
				—		Outside Director Kim, Sung-Jin		—
				Outside Director Yoo, Young-Sook		—		—
				Outside Director Kwon, Tae-Kyun		—		—
				—		—		Outside Director Kim, Joo-Hyun
				—		—		Outside Director Bahk, Byong-Won
March 18, 2022		Ordinary		—		Representative Director Chon, Jung-Son		—
				—		Inside Director Chung, Chang-Hwa		—
				Inside Director Yoo, Byeong-Og		—		—
				—		—		Representative Director Kim, Hag-Dong
				—		—		Inside Director Jeong, Tak
				Non-standing Director Kim, Hag-Dong		—		—
				—		Outside Director Pahk, Heui-Jae		—
				Outside Director Yoo, Jin-Nyong		—		—
				Outside Director Sohn, Sung-Kyu		—		—
				—		—		Outside Director Kim, Shin-Bae
				—		—		Outside Director Chung, Moon-Ki
				—		Inside Director Yoo, Byeong-Og		—

 

6

Date of Change		Type of General Meeting of Shareholders		Appointment				Expiration of Term
				New		Re-appointment
March 17, 2023		Ordinary		Representative Director Jeong, Ki-Seop		—		—
				Inside Director, Kim, Ji-Yong		—		—
				—		—		Representative Director Chon, Jung-Son
				—		—		Inside Director Chung, Chang-Hwa
				Outside Director, Kim, Joon-Gi		—		—
				—		—		Outside Director Chang, Seung-Wha
				—		Non-standing Director Kim, Hag-Dong		—

(5) Changes of the Major Shareholders of POSCO HOLDINGS INC.

(a) Since January 30, 2007, National Pension Service holds the largest number of common shares of POSCO HOLDINGS INC.

(As of June 30, 2023)

 

Major Shareholder

Share type

Dec 31, 2022

June 30, 2023

Number of Shares owned

Percentage of ownership (%)

Number of Shares owned

Percentage of ownership (%)

National Pension Service

Common stock

7,706,725

9.11

7,129,489

8.43

 

*	The percentage of ownership is based on the total number of issued shares, and there is no ownership of shares by related parties.

(b) For further reference, please refer to the public disclosures of changes in common shares of the largest shareholder on Financial Supervisory Service website (http://dart.fss.or.kr)

B. POSCO HOLDINGS’ Merger, Acquisition and Handover of Businesses

(1) January 2019 : Small scale merger of POSCO Processing & Service Co., Ltd into POSCO

(2) September 2019 : Small scale merger of By-Product Gas Generation Business from POSCO ENERGY into POSCO after spin-off

(3) March 2022 : Completion of Vertical Spin-off

 

Classification		Company Name		Business Unit
Surviving Company		POSCO Holdings Inc.		Development of future business portfolios and management of group’s businesses
New Company		POSCO		Production and sale of steel

 

7

3. Changes in Share Capital

There has been no changes in share capital in the last 5 years.

 

		(Unit : Share, KRW/Share, In millions of KRW)
Type		Details		As of June 30, 2023				As of December 31, 2022				As of December 31, 2021
Common Stock		Total number of issued shares			84,571,230				84,571,230				84,571,230
		Par value			5,000				5,000				5,000
		Share capital			482,403				482,403				482,403
Preferred Stock		Total number of issued shares			—				—				—
		Par value			—				—				—
		Share capital			—				—				—
Others		Total number of issued shares			—				—				—
		Par value			—				—				—
		Share capital			—				—				—
Sum		Share capital			482,403				482,403				482,403

 

Due to the decision to cancel treasury shares by the resolution of the board of directors on August 22, 2022, the total number of shares issued by the company will decrease from 87,186,835 to 84,571,230, and there will be no change in capital.

 

8

4. Other Information Regarding Shares

A. Total Number of Shares

 

		(As of June 30, 2023)
Authorized Shares		Issued Shares
200,000,000		84,571,230

 

Currency of the Republic of Korea is Korean Won (“KRW”).

Par Value: KRW 5,000 per share

B. Treasury Stock Acquisition and Disposal

(As of June 30, 2023)

 

Method of Purchase		Type		Beginning Balance				Increased				Decreased				Cancelled				Ending Balance
Direct		Common Stock			5,406,179				—				27,030				—				5,379,149
Trust Contract					3,315,874				—				—				—				3,315,874
Total					8,722,053				—				27,030				—				8,695,023

 

*	The number of treasury stock has decreased from 8,722,053 to 8,695,023 due to provision of stock grant to the executive officers of POSCO Holdings and subsidiaries

*

Aforementioned number of treasury stocks includes 3,176,474 treasury stocks which are subject to the exchange of exchangeable bonds issued by the company on September 1, 2021. The treasury stock subject to this exchange is finalized at the time the exchange right is exercised and is currently deposited with the Korea Securities Depository.

5. Voting Rights

 

 

		(As of June 30, 2023)
Classification		Number of Common Shares				Remarks
(1) Number of Issued Shares			84,571,230				—
(2) Shares without Voting Rights			8,695,023				Treasury stock
(3) Shares with Voting Rights			75,876,207				—

 

*	The above “(3) Shares with Voting Rights” is the number of shares based on holding voting rights as of June 30, 2023.

 

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6. Earnings and Dividends

 

 

		(In millions of KRW)
		2023.1H				2022				2021
(Consolidated) Profit*			1,416,152				3,144,087				6,617,239
(Separate) Profit			732,046				-467,852				5,181,227
Earnings per Share (Consolidated, KRW)			18,667				41,456				87,330
Cash Dividend Paid			379,381				910,190				1,285,635
Pay-out Ratio (Consolidated, %)			26.8				28.9				19.4
Dividend per Share (KRW)			5,000				12,000				17,000
Dividend Yield (%)			1.3				4.1				6.0

 

*	(Consolidated) Profit : Profit attributable to owners of the controlling company

*	Pay-out Ratio is Consolidated (K-IFRS) based

 

Changes after the record date (June 30, 2023) of the disclosure

On August 8, 2023 at the Board of Directors meeting, POSCO HOLDINGS INC. resolved to pay KRW 2,500/share of cash dividend (Total Cash Dividend Amount KRW189.7 billion) for 2Q 2023.

7. Stock Prices and Trading Volumes

The stock prices and trading volumes of POSCO HOLDINGS INC. for the last 6 months are as follows.

A. The Korean Stock Market

(KRW/share, In thousands of shares)

 

				January 2023		February 2023		March 2023		April 2023		May 2023		June 2023
Common share		Highest Price		314,000		346,000		368,000		423,500		382,000		403,500
		Lowest Price		272,000		298,000		316,000		362,500		360,000		361,000
		Average Price		296,275		316,300		329,886		392,150		369,200		388,786
Trading volume		Daily highest		762		1,447		3,767		4,200		1,090		2,070
		Daily lowest		218		333		386		1,162		409		492
		Monthly		7,768		14,070		19,258		43,961		14,345		16,961

 

10

B. New York Stock Exchange

(USD/ADS*, In thousands of ADS*)

 

				January 2023		February 2023		March 2023		April 2023		May 2023		June 2023
American Depositary Share (ADS)		Highest Price		64.16		65.14		69.69		79.74		72.46		77.70
		Lowest Price		53.44		58.90		59.77		67.93		67.88		69.05
		Average Price		60.21		61.64		62.85		73.80		69.53		75.01
Trading volume		Daily highest		370		387		578		895		332		439
		Daily lowest		118		75		97		247		97		96
		Monthly		4,110		3,617		5,286		9,803		4,415		3,670

 

*	ADS : One American Depositary Share representing one-fourth of one of Common Share

 

11

II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

Steel segment, Green Infrastructure (Trading segment), Green Infrastructure (Construction segment),

Green Infrastructure (Logistics and etc. segment), Green Materials and Energy, and Others.

B. Summary of Financial Status of Segment

 

																		(In millions of KRW)
Business Segment		2023.1H								2022								2021
		Sales				Operating Income (Loss)				Sales				Operating Income (Loss)				Sales				Operating Income (Loss)
Steel			32,316,782				1,358,458				70,649,647				3,236,220				63,548,935				8,365,445
Green Infrastructure (Trading)			22,169,750				633,449				49,589,760				872,279				45,290,449				619,675
Green Infrastructure (Construction)			5,014,338				109,214				8,885,491				293,344				7,412,514				428,669
Green Infrastructure (Logistics and etc.)			1,880,730				84,319				7,425,508				377,919				2,914,400				195,474
Green Materials and Energy			2,355,555				13,919				3,388,760				143,452				2,089,162				112,641
Others			847,096				639,593				1,169,536				843,682				1,784,321				59,252
Total			64,584,251				2,838,952				141,108,702				5,766,896				123,039,781				9,781,156

 

*	It is based on aggregated basis including internal transactions among affiliates.

*	Since POSCO Energy has been merged into POSCO International as of January 2023, the performance of POSCO Energy prior to the merger has been included into Green Infrastructure (Logistics and etc.).

2. Business Status of Segments

A. Steel

There are 84 consolidated companies in the steel segment, including POSCO and POSCO Steeleon, and overseas companies including PT.Krakatau POSCO in Indonesia, POSCO (Zhangjiagang) Stainless Steel Co., Ltd. in China and overseas processing centers.

 

12

∎ POSCO

(1) Summary of Business

POSCO produces steel materials such as hot rolled, cold rolled and stainless steel at Pohang Steelworks and Gwangyang Steelworks which is the largest steel mill in the world.

The steel industry is a key industry that has taken pivotal roles in the national economic development since the 1970s. Steel is used as a basic material in various manufacturing fields such as automobiles, shipbuilding, home appliances, and construction, and has a close connection with the front industry due to its characteristics.

Global crude steel production in the first half of 2023 fell 0.5% year-on-year to 944 million tons due to limited impacts of China’s reopening and prolonged economic downturn caused by each country’s tight fiscal policy.

Global Crude Steel Production

 

														(Millions of Tons, %)
Crude Steel Production		2020				2021				2022				2022.1H				2023.1H
Global			1,864				1,951				1,832				949				944
Korea			67				71				66				34				34
(Ratio)			(3.6	%)			(3.6	%)			(3.6	%)			(3.6	%)			(3.6	%)

 

Source: World Steel Association (www.worldsteel.org)

The steel industry is affected by the business cycle and the ups and downs of the demand industry.

Therefore, steel demand is not only related to trend of market economy, but also to situation of demand industries like shipbuilding, automobiles, home appliances, constructions and etc.

The steel industry is a capital and technology-intensive industry that requires enormous initial investments. Steel companies are focusing on reducing production costs and securing price competitiveness.

POSCO aims to maintain its competitive edge in the domestic market by strengthening long-term partnerships with key and leading customers and responding to global protectionism based on comprehensive response systems such as marketing, R&D, technology services, and production. In addition, we are expanding steel processing centers to meet the needs of global front industries such as automobiles, shipbuilding, home appliances, and construction, while strengthening our global sales network by operating steel production bases Indonesia(upstream) and India(cold-rolling mills).

The company plans to upgrade its customer and market structure by expanding its high value-added World Top Premium products, while responding to customers’ diverse needs by launching an eco-friendly product line Greenate and developing hydrogen-reduced steel HyREX technology in line with the global low-carbon trend.

In the steel industry, automobiles, shipbuilding, and construction are the main demand industries, and steel products are used as raw materials for these demand industries. In terms of sales, the proportion of domestic sale is 55% of total sales and export sales are around 45%, and by export region, the proportion of Southeast Asia, Japan, Europe and China is high. POSCO maintains order based production and sales system, and to secure stable sales, the proportion of direct sales to customers in domestic sales is maintained at about 60%.

POSCO continues to strive to strengthen its competitiveness in the midst of rapidly changing business environments such as the transition to a low-carbon eco-friendly era, accelerating technological innovation, and strengthening ESG management. The company’s competitive advantages include followings:

First, POSCO is promoting great transformation from current steelmaking process to a low-carbon, eco-friendly process.

Second, POSCO will complete establishing ‘intelligent Smart mill’

 

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Third, POSCO will upgrade portfolio for ‘premium product competitiveness’. In order to proactively respond to the increasing customer demand of eco-friendly products and expand the development of high-end products and Green transition solutions, POSCO launched three green steel brands that are : INNOVILT, e Autopos, and Greenable. In November 2022, Greenate which is a masterbrand representing POSCO’s “net-zero carbon 2050 was newly launched. Greenate is a brand that encompasses all departmental efforts and products for producing low-carbon, eco-friendly steel in the process of converting to eco-friendly EV battery materials and hydrogen-reduced steel, as well as the three major eco-friendly steel brands represented by e Autopos, INNOVILT, and Greenable. POSCO Group plans to systematically communicate its efforts and achievements to achieve 2050 carbon neutrality internally and externally with Greenate. In addition, in June 2023, the nation’s first carbon-reduced distributed steel product “Greenate certified steel” was launched, and we plans to launch Greenate carbon reduced steel(EAF Type) in 2026, which combines steel produced in furnace and electric furnace steel to reduce furnace usage.

Lastly, POSCO has been strengthening ESG oriented management. POSCO, As an unlisted company, has no obligation to establish special committee under the board of directors, but it has not only established an ESG committee to strengthen its external communication with interested parties but also established an audit committee to support ESG governance.

(2) Market Share

 

										(Millions of Tons, %)
Category		2023.1H								2022
		Production				Market share				Production				Market share
Crude Steel Production			33.7				100	%			65.9				100	%
POSCO			17.4				50.9	%			34.2				51.9	%
Others			16.3				49.1	%			31.7				48.1	%

 

Source: World Steel Association (www.worldsteel.org)

∎ POSCO STEELEON

POSCO Steeleon provides differentiated value through technology development and new market development with design/solution provision in both domestic and overseas surface treatment steel market. In addition, POSCO Steeleon is strengthening sales system of WTP (World Top Premium) products through joint marketing with POSCO. In line with POSCO Group’s strategy that strengthens the sales base for high-end steel materials for construction use, POSCO Steeleon is striving to strengthen its competitiveness in the high-end construction/exterior materials through research and development based on customers.

∎ POSCO M-TECH

(1) Summary of Business

POSCO M-TECH is a specialized supplier of steel products packaging and steel supplementary materials such as aluminum deoxidizers which is needed to remove oversaturated oxygen in steelmaking process. In case of steel products packaging, POSCO M-TECH continuously develops packaging machines and materials. The cost competitiveness of its steel packaging business has strengthened by reducing packaging materials and developing technology to improve packaging quality. The steel packaging business has enhanced cost competitiveness by reducing packaging materials and improving packaging quality, while the packaging equipment business has focused on developing automation equipment for packaging.

 

14

(2) Business Areas

 

Business Areas		Major Goods and Services		Major Customer
Steel raw material business		Aluminum deoxidizer pellets, mini pellets, ingots and etc.		POSCO
Steel product packaging business		Steel packaging service, maintenance of packaging facilities and etc.
Engineering business		Steel Packaging Engineering, Mechanical Equipment and etc.
Consignment operation business		Ferromanangan factory and etc.

(3) Market Share

 

																						(Tons)
Category		2023.1H								2022								2021
		Sales Volume				Market share				Sales Volume				Market share				Sales Volume				Market share
POSCO M-TECH			15,154				39.6	%			31,245				44.0	%			34,846				49.0	%
PJ Metal			23,100				60.4	%			39,700				56.0	%			36,257				51.0	%

 

It is difficult to calculate exact market share of Aluminum deoxidizers as total production and sales volume of the domestic market are not counted.

B. Green Infrastructure [Trading segment]

There are 37 subsidiaries in trading segment including POSCO International, 26 subsidiaries in construction segment including POSCO E&C and 13 subsidiaries of logistics and etc. segment including POSCO Flow.

∎ POSCO INTERNATIONAL

(1) Market Share

 

		(Millions of US Dollars)
Category		2023.1H				2022.1H				Growth Rate
All Trading Companies in Korea			307,179				350,512				-12.36	%
POSCO International Corp.			4,671				5,193				-10.05	%

 

Source: Korea International Trade Association

(2) Summary of Businesses

While focusing on trading which is its main business, POSCO International is engaged in resource development, production processing, and infrastructure development and operation.

POSCO International and its consolidated subsidiaries engage in three major businesses: trading, energy and investment(food resources, motor core for EV, mineral resource development and etc). In addition, POSCO International maintains a global network of over 80 subsidiaries and branches in major overseas regions.

[Global Business Sector]

 

-

Trading business : POSCO International has not only been securing stable supply line in steel business but also been actively developing and expanding new businesses such as secondary battery business, agro-commodities, and industrial materials based on the know-how accumulated over a long period of time in the traditional trading business and through its vast overseas networks. POSCO International is also carrying out agro-commodities trading and food resource development projects in order to secure sustainable future food resources. As a result, the company has diversified its sales outlets in Korea, China, Southeast Asia, and MENA, while expanding food import volume.

 

-

Motor core business: Together with POSCO Mobility Solution, POSCO International started engaging into motor core business for EV. It is expected to expand motor core production to 7 million by 2030.

 

15

-

Palm farm in Indonesia: POSCO International is developing a palm plantation in Indonesia and gradually expanding sales by establishing a local palm oil production system. In December 2022, another CPO (Crude Palm Oil) mill, enabling the production of approximately 250,000 tons of CPO annually is newly established, and the company is pursuing environmentally friendly palm farming through RSPO certification.

 

-

Grain Terminal in Ukraine : In 2019, POSCO International acquired a 75% stake in a Ukrainian grain export terminal capable of shipping 2.5 million tons annually, making us the first Korean company to enter the Ukrainian grain terminal business. Although operations have been suspended due to the Russia-Ukraine conflict, POSCO International is gradually resuming operations as the situation gets better.

 

-

Textile Business in Uzbekistan Posco International Textile in Uzbekistan has 4 manufacturing factories located in the city of Fergana, the villages of Tashlak, Kumtepa and a branch in the city of Bukhara. In order to secure raw cotton procurement and enhance the competitiveness of the cotton business, the raw cotton cluster project is = planned to continue to be expanded.

 

-

Online Steel Sales Business POSCO International has established eSTEEL4U which is an online platform for steel sales in April 2022. The company will lead the digital transformation of steel sales by strengthening the cooperation system with partners to improve customer service satisfaction and continuously expanding online sales volume.

 

-

Ambatovy Nickel Mine Project : POSCO International has been participating in the Ambatovy Nickel Mine Project, the world’s third-largest nickel mine in the mineral resource development project with a 6.1% stake since 2006. In addition, POSCO International is searching for new opportunities in EV battery material business.

 

-

Myanmar hotel business : POSCO INTERNATIONAL AMARA Co., Ltd., located in Yangon, Myanmar, owns the Lotte Hotel Yangon in Myanmar. The Lotte Hotel Yangon currently consists of 343 hotel rooms and 315 residences for long-term guests. Since its opening in September 2017, the hotel has been in operation under a 10-year hotel management contract with Hotel Lotte.

[Energy Sector]

The company has classified its business units into the energy sector, including the Gas Business Unit, Energy Project Development Unit, Energy Infrastructure Unit, and domestic and overseas investment corporations related to power generation such as SENEX Energy.

 

-

Myanmar Gas Field business : Since its production of the first gas in 2013, gas fields supplies an average of approximately 500 million standard cubic feet of gas per day. To secure additional gas production, the second phase of the development project was carried out. The drilling and completion of the production well and the offshore installation were completed in 2022, then gas production is since stable.

 

-

LNG Business : The company began LNG trading in 2017 based on Its expertise in developing international energy sources, specialty in trading, and the LNG demand of POSCO Group. In 2023, POSCO international merged with POSCO Energy and obtained an additional value chain across all aspects of the LNG business, from LNG import terminals to generation.

 

-

Onshore gas business in Australia : To execute the group’s carbon neutrality and hydrogen business strategies in a timely manner and expand its existing energy business centered in Myanmar, the company has acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of Australia, producing gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. Recognizing the rising gas demand and high gas prices in the east coast of Australia, the company has launched additional development projects with a targeted three-fold increase in gas production by 2025.

[New business investment]

In addition, POSCO International is searching for new opportunities in four new growth businesses areas which include smart farm, green materials, green mobility and hydrogen.

 

16

B. Green Infrastructure [Construction segment]

∎ POSCO E&C

POSCO E&C engages in primarily 3 businesses: plant, civil engineering(infrastructure) and construction.

Plant business is the construction of integrated steel mills, EPC projects and industrial plants. Plant business used to focus on small investment of existing facilities but there will be more new investments in Electric furnace and hydrogen reduction process followed by global green trend. As nuclear power generation is getting attention again, the development of small nuclear power plants is expected to become active.

The civil engineering business is about constructing expressways, railroads and bridges. With the government’s Green New Deal policy, the infrastructure industry is expected to increase investment in eco-friendly facilities such as water treatment and waste treatment, and investment in roads and railways is expected to increase as well. It is expected that more favorable overseas construction market would be created for the domestic construction companies as demand of infrastructure development is increasing in Asia, Middle East, Americas as well as in Europe.

Housing demand is shrinking after a sharp rate hike, and number of unsold households are increasing around areas where supply has been concentrated. Recently, concerns have been growing that new orders will shrink as funding has been suspended due to the financial market crunch. Housing market conditions rapidly deteriorated due to sudden interest rate increases, rising construction costs, and a slump in the construction PF market. In terms of overseas market, domestic construction companies have entered Southeast Asia, where urbanization is actively underway, but for now, construction companies’ risk management is expected to be the top priority due to growing economic uncertainties around the world.

B. Green Infrastructure [Logistics and etc. segment]

∎ POSCO DX

POSCO DX has both IT and OT technologies and has secured competitiveness in its manufacturing-based business on the convergence of IT and OT technologies. When domestic ICT market size is estimated to be KRW 39 trillion, POSCO DX is expected to take about 3.0% of domestic ICT market share (ICT market for local corporates only). POSCO DX will continue to adopt POSCO Group’s capabilities in digital transformation, logistics automation, and industrial robot system engineering businesses to create new success stories for sustainable growth even in business environments lots of uncertainties. Based on POSCO Group’s One IT strategy, POSCO DX is expecting to add value by developing IT infrastructure and strengthening the competitiveness of Smart Factory business.

The experiences operating POSCO’s Smart Factory based on big data, IoT and AI-based platform, led the company to have a strength in the area of continuous and automation process. With its experiences in POSCO’s smart factory construction, POSCO DX is planning to support the mass production system of EV battery materials. In addition, POSCO DX will expand the logistics automation business market with the successful completion of the logistics business in progress. While diversifying logistic business sectors POSCO DX will actively participate new airport project and contribute to the groups’ advancement of the group’s logistic system.

C. Green Materials and Energy

Green Materials and Energy segment include the business related to EV battery materials, such as lithium, nickel, cathode material, anode material, and recycling, and there are a total of 16 subsidiaries, including POSCO Future M and POSCO Argentina.

 

17

∎ POSCO Future M

POSCO Future M operates mainly 2 businesses: basic material business and energy material business.

[Basic industrial materials business]

 

-

Refractory production : Refractories maintain their chemical properties and strength even at high temperatures making them indispensable materials for industrial facilities including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO Future M produces and maintains refractories. In order to keep price competitiveness in the domestic market, the company has expanded its business to China.

 

-

Lime business : In the quicklime & chemical business, POSCO Future M is currently doing consignment operation of cokes plants where purify coke oven gas (COG) in Pohang and Gwangyang. With the chemical products generated in during the purification process, POSCO Future M operates cokes business.

[Energy material business]

In the energy material business, POSCO Future M provides cathode and anode materials which are the main components for secondary cell: cathode, anode, electrolyte and separation membrane. It is planned to expand its production of natural graphite anode materials from 74 thousand ton/year in 2021 to 182 thousand ton/year in 2030. Considering expanding artificial graphite production to 153 thousands ton/year by 2025, it is expected to have a production capacity of 168 thousands ton/year in total by 2025. Furthermore, cathode material production is expected to increase from 105 thousands ton/year to 1,000 thousands ton/year by 2030. Due to environment-friendly policy with less carbon emission worldwide, demands for Energy Storage System and Electric Vehicle are expected to grow continuously.

According to the battery market research company SNE Research, LG Energy Solution, our major revenue source, recorded the 3rd highest global market share (12.3%) in EV batteries as of 2022, indicating a decrease compared to the previous year. However, battery usage continues to show steady growth with a 9.7% increase compared to the same period last year. Along with this growth, in April 2023, POSCO Future M also signed a long-term contract worth approximately KRW 30 trillion for cathode materials. Furthermore, POSCO Future M has recently diversified the sales sources including Samsung SDI and plan to supply approximately 40 trillion won worth of cathode materials (NCA) over the next 10 years.

The secondary battery market for electric vehicles is expected to grow due to China’s strong electric vehicle industry development policy, European CO₂ emission regulations, and global OEMs’ proportion of electric vehicle.

POSCO Group has established full battery material value chain from raw materials business to battery materials and recycling business. As the only domestic producer of graphite-based anode materials, which are considered to have the highest degree of difficulty in achieving independence from Chinese imports, POSCO Future M is expected to expand its sales revenues in working with global automakers and battery producers.

 

18

Global Cathode and Anode Material Market Outlook

(Ten thousand Tons)

 

(SNE Research)

D. Others

In Others segment, there are 12 subsidiaries in total, including POSCO HOLDINGS. POSCO HOLDING is focusing on investment in new growth businesses and opportunities.

 

19

3. Key Products

A. Sales of Key Products (2023.1H)

(In hundred millions of KRW, %)

 

Business Area		Item		Specific Use		Total Sales				Ratio
Steel		Hot-rolled Product (HR)		Steel pipe, Shipbuilding, etc.			70,819			21.90%
		Cold-rolled Product (CR)		Automobile, Home appliances, etc.			96,184			29.80%
		Stainless Steel Products		Tableware, pipes, etc.			56,772			17.60%
		Others		Plates, Wire rods, etc.			99,393			30.80%
		Gross Sum					323,168			100.00%
		Deduction of Internal Trade					-114,955
		Sub Total					208,213
Green Infra		Trading		Steel, Metal			164,856			56.70%
				Chemical, Strategic Item, Energy			16,307			5.60%
				Others			40,535			13.90%
		Construction		Architecture (Domestic)			19,526			6.70%
				Plant (Domestic)			12,207			4.20%
				Civil Engineering (Domestic)			5,315			1.80%
				Others (Domestic)			936			0.30%
				Overseas Construction			7,553			2.60%
				Owned Construction			2,863			1.00%
				Others			1,743			0.60%
		Logistics and etc.		Others			18,807			6.50%
		Gross Sum					290,648			100.00%
		Deduction of Internal Trade					-123,170
		Sub Total					167,478
Green		Gross Sum					23,556			100.00%
Materials and		Deduction of Internal Trade					-4,982
Energy		Sub Total					18,574
Others		Gross Sum					8,471			100.00%
		Deduction of Internal Trade					-7,713
		Sub Total					758
Total Sum							395,023

As of January 2023, POSCO Energy was merged into POSCO International. As a result, the performance of POSCO Energy before the merger was included in Green Infrastructure (Logistics and etc. segment).

 

20

B. Price Movement Trends of Key Products

(In thousands of KRW/ Tons, KRW/kWh)

 

Business Area		Products		2023.1H				2022				2021
Steel		Hot-rolled Product (HR)			1,001				1,105				970
		Cold-rolled Product (CR)			1,166				1,293				1,035
Green Infra		Electric Power			231				224				98
Green Materials and Energy		Refractory			1,006				1,022				913
		Lime			151				117				104

 

Above price movement trend of steel segment in 2022 is based on the price between March 1 to December 31, 2022, and aggregated price of HR and CR price in the first half of 2022 is 1,180 and 1,312 thousand won)

Construction and Logistics and etc. segments of Green Infrastructure are omitted due to its difficulties of measuring raw materials fluctuations. In the case of the secondary battery material business, detailed descriptions are not included due to risk of information leakage

[Steel]

(1) Criteria for Calculation

 

(a)

Subjects for Calculation: Unit sales prices of the standard hot-rolled product and cold-rolled product

 

(b)

Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

The global steel price was increased due to the increase in raw material costs such as iron ore and coking coal, as well as temporary supply constraints in the United States and Europe. The company has gradually increased the steel prices, taking into account raw material prices increase and the trend of global steel prices. As the company has a high proportion of long-term contracts, the price increase in the first quarter has reflected in the second quarter sales.

[Green Infrastructure (Trading)]

(1) Criteria for Calculation

 

(a)

Subjects for Calculation: Price of electric power

 

(b)

Calculation Method and Unit: Unit price per electric power ÷ Net power volume generated

(2) Factors of Price Changes

Power : Korea Gas Corporation cost, etc.

 

-

The cost consists of introduction cost, supply cost, etc., and is affected by crude oil and exchange rates

 

21

[Green Materials and Energy]

(1) Criteria for Calculation

 

(a)

Subjects for Calculation: Unit price of refractory and quicklime

 

(b)

Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

-

Price of refractories is affected by business condition of front industry and raw material cost.

 

-

Quicklime price is mainly influenced by utility unit price and raw materials cost. The price fluctuation of quicklime is small.

 

-

Raw materials for energy materials are subject to price fluctuations depending on the international supply of mineral resources.

 

22

4. Major Raw Materials

A. Current Status of Major Raw Materials

 

														(In hundred millions of KRW)
Business Segment				Type of Purchase		Item		Specific Use		Purchase Amount (Portion, %)				Portion (%)				Remarks
				Raw Materials		Materials for Iron-making		Iron Ore for Blast Furnaces			90,385				60.80	%		Iron Ore, Coal
Steel						Sub-materials		Sub-materials for Iron-making, Steelmaking			28,632				19.30	%		Iron Material, Alloy Iron, Non-ferrous Metal, Limestone, etc.
						Stainless Steel Materials		Key Materials for STS Production			29,622				19.90	%		Nickel, Ferrochrome, STS Scrap Iron, etc.
Green Infrastructure		Trading		Raw Materials		LNG		Material for Power Generation			11,679				100.00	%		—
		Construction		Raw Materials		Ready-mixed Concrete		Construction of Structure			1,803				21.20	%		—
						Steel Reinforcement		Strengthening Concrete			1,827				21.50	%		—
						Cable		Electricity Transfer			115				1.40	%		—
						Steel Pile		Foundation of Structure			93				1.10	%		—
						Others		Construction of Pipe and Structure etc.			4,660				54.80	%		—
		Logistics and etc.		Raw Materials		Others		For other use			5,102				100.00	%		—
Green Materials and Energy				Raw Materials		NCM and etc.		Production of cathode materials			22,008				90.10	%		—
						Graphite and etc.		Production of anode materials			636				2.60	%		—
						Limestone and etc.		Production of Lime			710				2.90	%		—
						Others		Production of refractory			1,067				4.40	%		—

 

*	Amount: CIF + customs duties + stevedoring fees + other incidental expenses

 

23

B. Price Movement Trends of Major Raw Materials

(In thousands of KRW)

 

Business Segment				Category		2023.1H		2022		2021
Steel				Iron Ore (per ton)		143		143		169
				Coal (per ton)		380		472		257
				Scrap Iron (per ton)		545		605		563
				Nickel (per ton)		31,275		33,147		21,130
Green Infrastructure		Trading		LNG (per ton)		1,626		1,594		702
		Construction		Ready-mixed Concrete (per m3)		85		77		68
				Steel Pile (per m)		171		180		272
				Steel Reinforcement (per kg)		1.0		1.0		1.0
				Cable (per m)		0.9		0.9		1.2
Green Materials and Energy				Refractory (per ton)		348		479		320
				Limestone (per ton)		25		22		19

 

Green Infrastructure (Logistics and etc. segment) and Others segment are omitted due to its difficulties of measuring raw materials fluctuations. In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage

 

24

[Steel]

 

Price Movement Trend of Major Raw Materials

(1) Iron Ore

 

																										(In US Dollars/ Tons)
		‘23.2Q				‘23.1Q				‘22.4Q				‘22.3Q				‘22.2Q				‘22.1Q				‘21.4Q				‘21.3Q				‘21.2Q				‘21.1Q
Trend of International Benchmark Price (Free On Board, “FOB”)			102				118				90				94				126				132				96				148				188				158

(2) Coal

 

																										(In US Dollars/ Tons)
		‘23.2Q				‘23.1Q				‘22.4Q				‘22.3Q				‘22.2Q				‘22.1Q				‘21.4Q				‘21.3Q				‘21.2Q				‘21.1Q
Trend of International Benchmark Price (FOB)			243				344				278				250				446				488				369				264				137				127

(3) Scrap

 

																										(In US Dollars/ Tons)
		‘23.2Q				‘23.1Q				‘22.4Q				‘22.3Q				‘22.2Q				‘22.1Q				‘21.4Q				‘21.3Q				‘21.2Q				‘21.1Q
Trend of Purchase Price (Cost and Freight, “CFR”)			403				438				387				394				531				562				527				500				497				443

(4) Nickel

 

																										(In US Dollars/lb, US Dollars/Tons)
		’23.2Q				‘23.1Q				‘22.4Q				‘22.3Q				‘22.2Q				‘22.1Q				‘21.4Q				‘21.3Q				‘21.2Q				‘21.1Q
Trend of London Metal			10.12				11.79				11.48				10.01				13.13				11.98				8.99				8.68				7.87				7.97
Exchange ( “LME”) Cash Price			22,308				25,983				25,292				22,063				28,940				26,395				19,821				19,125				17,359				17,570

 

LME : London Metal Exchange

 

25

[Green Infrastructure]

(1) Criteria for Calculation

 

Business Sector		Products		Criteria for Calculation		Factors of Price Changes
Trading		LNG		Average purchase price and LNG direct purchase price of Korea Gas Corporation		Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected by crude oil, exchange rate, etc.)
Construction		Ready-mixed Concrete		Standard 25-210-15		Raise of priced agreed in Seoul metropolitan area (as of May 1, 2023)
		Steel Pile		SPIRAL,609.6,12T,STP275,KS F 4602,STEEL PILE		Changes in unit price due to decrease in raw material (coil) price
		Steel Reinforcement		SD400 10mm		Increase the price of raw materials (scrap)
		Cable		TFR-3, 0.6/1KV, 2.5SQ, 2C		There were slight fluctuations in exchange rates and the price of raw materials (such as electrolytic copper) (There was price increase in April 2023, but it went down again in June 2023)

[Green Materials and Energy]

(1) Criteria for Calculation

- Refractory and lime: Purchase prices including freight costs

(2) Factors of Price Changes

- Refractory raw materials : Price fluctuations and compositional costs of raw materials in China

- Limestone : Raw material price fluctuation is not extreme and it varies slightly depending on the freight cost

- Energy materials : Price trends are not disclosed considering concerns about information leakage

 

26

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

 

				(Thousands of Tons)
Business Area		Products		2023.1H				2022				2021
Steel		Crude Steel			20,173				40,680				40,680

∎ POSCO STEELEON

 

						(Thousands of Tons)
Business Area		Products		Plant		2023.1H				2022				2021
Steel		Galvanized / Color- coated Steel		Pohang			476				960				960
				Myanmar			34				70				70
Total							510				1,030				1,030

∎ POSCO M-TECH

 

														(Tons)
Business Area		Products				2023.1H				2022				2021
Raw materials for steel production			Ingot and etc.				21,004				39,058				38,080

[Green Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

 

										(Electric Power: MW/year)
Business Area		Products								2023.1H				2022				2021
Power Generation			Electric Power				Incheon				3,412				3,412				3,412

[Green Materials and Energy]

∎ POSCO FUTURE M

 

										(Thousands of Tons)
Business Area		Products		Place of Business		2023.1H				2022				2021
Refractory		Brick and etc.		Pohang			57,801				116,560				113,000
LIME		Quicklime		Pohang			543,000				1,095,000				1,095,000
				Gwangyang			543,000				1,095,000				1,095,000
Total							1,143,801				2,306,560				2,303,000

 

27

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production

 

				(Thousands of Tons)
Products				2023.1H				2022				2021
Crude Steel					19,514				37,928				42,964
Products		Hot-Rolled Steel			5,739				9,268				9,243
		Plate			3,279				5,857				6,832
		Wire Rod			1,171				1,988				2,688
		Pickled-Oiled Steel			1,452				2,847				2,880
		Cold-Rolled Products			3,186				7,623				7,898
		Coated Steel			3,532				6,708				7,446
		Electrical Steel			407				1,005				1,032
		Stainless Steel			1,687				3,400				4,099
		Others			899				3,261				3,106
		Total			21,352				41,957				45,224

 

The amount of products is the aggregate amount of POSCO’s production and production of POSCOsubsidiaries, which may include interested parties’ transactions.

The production in 2022 includes POSCO’s production result from January to February before the spin off date (March 1, 2022).

(2) Capacity Utilization Rate

 

								(Thousands of Tons, %)

		Company		Capacity				Production				Utilization Rate
Crude Steel Production		POSCO			20,173				17,351				86.0	%
		PT.KRAKATAU POSCO			1,527				1,538				100.7	%
		POSCO (Zhangjiagang) Stainless Steel Co., Ltd.			550				417				75.8	%
		POSCO YAMATO VINA STEEL JOINT STOCK COMPANY			276				209				75.8	%
		Total			22,526				19,514				86.6	%

[Green Infrastructure (Trading)]

 

Since it is difficult to measure production result and operating rates of Green Infrastructure (Construction), and Green Infrastructure (Logistics and etc.) segments considering the nature of the business, they are omitted in this part.

 

28

∎ POSCO INTERNATIONAL

(1) Production Result

 

(Gwh)

Business Area

Products

2023.1H

2022

2021

Power Generation

Electric Power

5,661

11,189

13,493

(2) Capacity Utilization Rate

(Hour, %)

Business Area

Products

2023.1H Capacity

2023.1H Production

Utilization Rate

Power Generation

Incheon Power Plant

4,344

2,396

55.3

%

[Green Materials and Energy]

∎ POSCO FUTURE M

(1) Production Result 

 

														(Tons)
Business Area		Products		Place of Business		2023.1H				2022				2021
Refractory		Brick and etc.		Pohang			39,746				81,094				83,884
LIME		Quicklime		Pohang			552,973				1,043,109				1,151,419
				Gwangyang			612,524				1,176,611				1,295,720
Total							1,205,243				2,300,814				2,531,023

 

In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage

(2) Capacity Utilization Rate (Current Business Year)

 

										(Tons,%)
Business Area		Capacity				Production				Utilization Rate
Refractory Factory			57,801				39,746				69	%
Quicklime Factory (Pohang)			543,000				552,973				102	%
Quicklime Factory (Gwangyang)			543,000				612,524				113	%
Total			1,143,801				1,205,243				—

 

29

C. Production Facilities

(1) The current status of production facilities

 

[Land]																(In millions of KRW)
Business Segment				Beginning Book  Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					1,814,272				67,335				-26				—				1,881,581
Green Infrastructure		Trading			185,495				280,032				—				—				465,527
		Construction			382,586				1,660				—				—				384,246
		Logistics and etc.			399,389				—				-290,770				—				108,619
Green Materials and Energy					200,438				35,037				—				—				235,475
Others					120,985				49,351				—				—				170,336
[Buildings]
																(In millions of KRW)
Business Segment				Beginning Book Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					3,081,547				162,636				-85,859				-158,695				2,999,629
Green Infrastructure		Trading			486,865				365,799				-281,006				-8,734				562,924
		Construction			75,728				432				-833				-1,485				73,842
		Logistics and etc.			187,725				2,317				-77,326				-3,848				108,868
Green Materials and Energy					231,104				203,918				-19,818				-7,107				408,097
Others					111,925				139				-4,787				-934				106,343
[Structures]
																(In millions of KRW)
Business Segment				Beginning Book Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					2,515,379				147,692				-80,885				-135,198				2,446,988
Green Infrastructure		Trading			62,033				1,164,957				-735,878				-11,275				479,837
		Construction			26,888				678				-28				-952				26,586
		Logistics and etc.			531,573				331				-419,696				-4,630				107,578
Green Materials and Energy					20,865				19,775				-57				-1,118				39,465
Others					6,189				4,574				-5,510				-71				5,182

 

30

[Machinery and Equipments]
																(In millions of KRW)
Business Segment				Beginning Book Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					14,230,273				1,315,444				-742,778				-1,137,072				13,665,867
Green Infrastructure		Trading			392,562				2,879,286				-1,969,508				-89,410				1,212,930
		Construction			7,321				404				-5				-847				6,873
		Logistics and etc.			1,150,735				652				-840,010				-22,550				288,827
Green Materials and Energy					629,658				459,782				-21,887				-41,590				1,025,963
Others					12,281				—				-10,681				-476				1,124
[Vehicles]
																(In millions of KRW)
Business Segment				Beginning Book Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					33,443				39,490				-7,110				-8,282				57,541
Green Infrastructure		Trading			8,592				4,416				-1,185				-1,167				10,656
		Construction			4,599				3,934				-1,869				-673				5,991
		Logistics and etc.			863				425				-126				-116				1,046
Green Materials and Energy					4,620				4,633				-626				-1,439				7,188
Others					14				—				-1				-3				10
[Tools and Fixtures]
																(In millions of KRW)
Business Segment				Beginning Book Balance				Increased				Decreased				Depreciation				Ending Book Balance
Steel					55,774				33,539				-13,476				-14,204				61,633
Green Infrastructure		Trading			25,494				12,003				-7,041				-6,782				23,674
		Construction			1,148				279				-73				-275				1,079
		Logistics and etc.			2,026				2,399				-1,290				-429				2,706
Green Materials and Energy					6,488				28,028				-91				-4,625				29,800
Others					31				1				—				—				32

 

31