SEOUL — POSCO Holdings Inc., the parent company of South Korea's largest steelmaker, POSCO Group, revealed plans on Friday to cancel 2 trillion won (approximately US$1.45 billion) worth of its shares by 2026. This strategic move is part of a broader effort to increase corporate value and return on investment for shareholders.
According to Yonhap News Agency, The company will cancel 5.25 million shares valued at 1.9 trillion won and will also repurchase another 100 billion won worth of shares for cancellation over the next three years, as stated by POSCO Holdings Chief Strategic Officer Jeong Ki-seop. In addition to these financial maneuvers, POSCO is actively investing in growth areas, divesting from low-yielding assets, and exploring new opportunities in global markets, including potential steel-making facilities in India and the United States. Furthermore, POSCO is focusing on the burgeoning car battery materials business, anticipating significant growth with the shift to all-electric vehicles. On the day of the announcement, POSCO Holdings' stock showed resilience with a slight increase, contrasting with the broader KOSPI index's decline.