POSCO INTERNATIONAL CORP. — POSCO International Corp., the trading subsidiary of South Korea's leading steel manufacturer POSCO, announced its plans on Monday to increase its traction motor core production capacity abroad as part of its strategy to secure a new growth engine.
According to Yonhap News Agency, a decision made during a recent board meeting will see the construction of the No. 2 traction motor core plant in Mexico by March next year and another new facility in Poland by May next year. This move is aligned with POSCO International's 2030 vision to establish a global production and distribution network capable of producing over 7 million traction motor cores annually and capturing a 10 percent share of the global market.
Traction motor cores are essential components in both all-electric vehicles and gasoline hybrid models. Currently, POSCO International operates four traction motor core plants—two in South Korea (Pohang and Cheonan), one in Mexico, and one in China, with a combined capacity of 2.25 million units. With the upcoming addition of the second Mexican plant, the Poland plant, and a planned facility in India within the next few years, the company is set to have seven plants across five countries.
SEOUL — The Financial Services Commission (FSC) of South Korea revealed on Monday a strategic initiative to boost the value of local listed companies, thereby offering increased returns to investors. This move is aimed at addressing the persistent issue of the "Korea Discount," where the market value of South Korean shares is perceived to be lower than their fundamental worth.According to Yonhap News Agency, a seminar led by FSC Chairman Kim Joo-hyun was held to deliberate on ways to encourage companies to augment their value. The seminar introduced the key aspects of the Corporate Value-up Program, devised in collaboration with related institutions, to foster dialogue and gather feedback from various stakeholders. The FSC announced plans for a follow-up seminar in May, with the goal of refining the program guidelines based on input from businesses, aiming for a launch in the first half of the year.
The government's proposal includes offering substantial tax incentives to companies that voluntarily engage in efforts to enhance their value. Additionally, the development of a new Corporate Value-up Index is underway, which will assist institutional investors, including pension funds, in making informed investment decisions by identifying firms likely to increase their corporate value. The FSC also plans to introduce exchange-traded funds that track the Korea Value-up index, thereby improving retail investors' access to these companies.
Furthermore, a dedicated department to support the Corporate Value-up Program will be established at the Korea Exchange, Seoul's main stock market, along with a new advisory board to aid listed firms in their voluntary value-enhancement efforts. FSC Chairman Kim emphasized the government's role in fostering a positive capital market ecosystem, where companies receive fair valuations for sustainable growth and investors can reap and reinvest the benefits of such growth.