South Korea Boosts POSCO's Hydrogen Reduction Steelmaking with Significant Investment Support

The South Korean government has committed to actively supporting POSCO Group's ambitious plan to invest 73 trillion won ($54 billion USD) by 2030, aimed at leading the clean hydrogen industry. This pledge was highlighted during a joint on-site meeting of related ministries at POSCO's Pohang Steel Works, which included high-level officials such as the Deputy Prime Minister and Minister of Strategy and Finance, Choi Sang-mok.

 

Government Initiatives to Expedite Projects

 

The South Korean government has implemented measures to significantly shorten administrative procedures for POSCO's hydrogen reduction ironmaking project in Pohang, valued at 20 trillion won (approximately $14.8 billion USD). These measures include exemptions from maritime traffic safety diagnoses, accelerated environmental impact assessments, and expedited landfill basic plan procedures, cutting the total administrative process by 11 months. As a result, the project’s construction start date is now expected to be advanced to June of the next year.

 

Comprehensive Financial and Policy Support

 

In addition to speeding up procedures, the government plans to enhance financial and systemic support. Green finance will be expanded from 6 trillion won (approximately $4.4 billion USD) in 2024 to 9 trillion won (approximately $6.6 billion USD) in 2025, with additional funding for R&D in core carbon-neutral technologies. Regulatory improvements are also scheduled for this year, including adjustments to the emissions trading system to grant companies more flexibility in managing emissions allowances.

 

Tax Incentives and Strategic Technology Investments

 

The government will strengthen tax incentives for corporate investments, raising deduction rates for increased investments and extending temporary investment tax credits. Notably, hydrogen reduction ironmaking technology, a field where POSCO is a leader, was designated as a national strategic technology earlier this year.

 

Infrastructure and Supply Chain Developments

 

Investments will focus on advancing industrial infrastructure and stabilizing supply chains. This includes increasing funding for secondary battery specialized complex support and constructing essential facilities at the Pohang secondary battery industrial complex. Additionally, the Supply Chain Stabilization Fund, launched in September, will aid in securing raw materials, with POSCO Group companies involved in secondary battery materials receiving targeted support.

 

Corporate and Governmental Commitment

 

Jeong Ki-seop, CEO of POSCO Holdings, expressed gratitude for the government’s robust support and confirmed the group’s commitment to carrying out the planned investments smoothly. Deputy Prime Minister Choi emphasized the pivotal role of steel in the country’s industrial growth and reiterated the government’s dedication to supporting POSCO’s 73 trillion won (approximately $54 billion USD) investment plan, particularly in emerging industries like hydrogen reduction ironmaking.

 

Source: FCW Team