POSCO, the "elder sibling" of the steel industry, saw a nearly 40% decrease in operating profit last year due to worsening market conditions. Additionally, the possibility of a reduction in the U.S. tariff-free quota has raised concerns about the "Trump risk," further adding pressure. As a result, there are growing fears surrounding POSCO's current situation.

However, POSCO has a history of proving its competitiveness and surviving even during challenging times, such as under the U.S.'s "trigger price" system. While Japanese steelmakers struggled with import restrictions, POSCO solidified its position in the market through strategic responses. The industry remains optimistic, with many believing that POSCO can overcome the current uncertain external environment as well.

According to industry sources on the 6th, POSCO Holdings' revenue for last year was 72.688 trillion KRW, a 5.8% decrease compared to the same period the previous year. Net profit also fell by 48.6% to 9.5 trillion KRW. In the steel sector, POSCO's revenue dropped by 3.6% to 37.556 trillion KRW, and operating profit decreased by 29.3% to 1.473 trillion KRW. The decrease in both revenue and operating profit was attributed to a decline in steel demand and the impact of the economic downturn, which led to a reduction in production and sales due to fluctuations in the number of operating blast furnaces.

Moreover, the sense of crisis has intensified as U.S. President Donald Trump has repeatedly announced plans to impose tariffs targeting the steel industry.

Similar to President Trump's tariff policy, there have been past instances of such measures. POSCO demonstrated its competitiveness even under the "trigger price" system implemented by former U.S. President Jimmy Carter in the 1970s, which was aimed at protecting the domestic market.

The trigger price system set a specific price threshold, and if foreign steel products were imported below that price, the U.S. could initiate anti-dumping investigations without complicated procedures.

At that time, POSCO successfully entered the U.S. market by establishing UPI (USS-POSCO Industries). By investing 50-50 with U.S. Steel, POSCO modernized a cold-rolling plant in Pittsburgh and supplied raw materials, thus avoiding trade friction. Additionally, POSCO adopted a differentiated strategy from Japanese steelmakers. While Japanese companies maintained high-price policies and sold steel at elevated prices, POSCO focused on price competitiveness to target the market. Thanks to this strategy, POSCO was able to minimize the impact of the trigger price system while solidifying its position in the U.S. market.

Building on its past experience, POSCO is now considering a local production strategy to avoid U.S. tariffs. It is carefully exploring the possibility of establishing production facilities within the United States.

In addition, POSCO is actively seeking ways to maintain its competitiveness despite the deteriorating market conditions. The company plans to focus on systematically innovating its cost structure to maximize profitability. This includes developing technologies to reduce raw material usage or effectively blend low-cost raw materials while maintaining the same quality. Ultimately, the goal is to maximize production efficiency and significantly reduce raw material costs.

Furthermore, POSCO plans to secure global business opportunities by expanding investments in high-growth, high-profit markets such as India and North America, and strengthen its core competitiveness by achieving concrete results in the carbon-neutral sector.

A POSCO spokesperson stated, "The intensification of regulations on China and the easing of monetary policies, including fiscal policies, will serve as positive signals." They added, "We cautiously expect that the global steel market will improve in the second half of this year."

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