POSCO Group Signs Mutual Growth Agreement with 5,300 Partners... Expands Support for Finance and Technology Development

POSCO Group Agrees to Improve Payment Terms,
Revitalize Mutual Growth Payment System,
and Strengthen Collaboration with Partners

POSCO Group has entered into a win-win agreement encompassing even its secondary and tertiary partners, with commitments to improve payment terms and expand support for finance and technology development.

On the 16th, key participants are taking a commemorative photo at the 'POSCO Group Win-Win Agreement Signing Ceremony' held at the POSCO Center in Seoul. From the sixth person on the right are Byeongki Joo, Chairman of the Korea Fair Trade Commission, and Jutae Lee, President of POSCO Holdings. Provided by POSCO Holdings. Photo by POSCO Holdings

On July 16, POSCO Group announced that it held the 'POSCO Group Win-Win Agreement Signing Ceremony' at the POSCO Center in Gangnam-gu, Seoul. The event was attended by 130 people, including Byungki Joo, Chairman of the Fair Trade Commission, Joota Lee, President of POSCO Holdings, the heads of the group's five major business companies, and representatives from primary and secondary partner companies.

Through this agreement, POSCO Group pledged to: ▲ improve payment terms ▲ activate the Win-Win Payment System ▲ give priority to primary partners who take part in win-win collaborations ▲ and provide support to strengthen the competitiveness of partner companies. The group aims to solidify a win-win ecosystem by ensuring practical support extends beyond first-tier to second- and third-tier partners.

First, POSCO Group will ensure that full payments to partners are made in cash equivalents within an average of 10 days to facilitate smooth cash flow for partners. It will also support both primary and secondary partners in making their payments to their own downstream partners within up to 30 days, respectively.

Additionally, POSCO Group will boost utilization of the Win-Win Payment System, which guarantees cash payments on settlement dates and allows primary, secondary, and tertiary partners to cash out payment receivables early. Primary partners that have signed fair trade agreements with secondary and tertiary partners will be given incentives when suppliers are evaluated.

Furthermore, support will be expanded in the areas of finance, technology development, and overseas market entry to enhance the competitiveness of partners. In particular, the scope of the Performance Sharing Program—which shares the financial results of joint technology development with partners—will be expanded from just primary partners to now include second-tier and lower-tier partners.

POSCO Group anticipates that approximately 5,300 partner companies throughout its supply chain will benefit from this agreement.

In his congratulatory speech, Chairman Byungki Joo stated, “Win-win partnerships are the foundation for POSCO Group’s ongoing innovation and represent an investment that can elevate the entire industrial ecosystem to the next level. I look forward to seeing this culture of mutual growth become the new standard for our economy.”

President Joota Lee remarked, “POSCO Group has always regarded mutual growth with our partners as a key value and has grown accordingly. Going forward, we will continue to spread a transparent and fair trading culture throughout the industrial ecosystem and strengthen trusted partnerships so that we can be a solid companion for our partners.”

POSCO Group plans to reflect the main contents of this agreement in the Fair Trade Agreement with partner companies scheduled for early next year, taking the lead in building a sustainable industrial ecosystem.

This content was produced with the assistance of AI translation services.