Sustainability Report

동반성장

Shared Growth

Eight Major Shared Growth Programs

To build a robust steel supply chain, POSCO and its suppliers operate the ‘Eight Major Shared Growth Programs.’ By fostering a culture of fair trade within the supply chain and pursuing win-win partnerships with business partners, POSCO has received the highest rating in the Shared Growth Index from the Korea Commission for Corporate Partnership1)for four consecutive years.

We operate an ‘Open Purchasing Consultation Office’ within the e-Procurement System to address inquiries and grievances from partner companies. Additionally, external stakeholders can express their opinions, either named or anonymously, through various channels such as the company website (Ethical Misconduct Reporting Center), and receive a formal response from the company. Submitters are assured that they will not face any disadvantages, such as identity disclosure or retaliation. If the facts are verified, we actively address the issue through monitoring and audits.

1)Korea Commission for Corporate Partnership: A private organization established to foster and promote a culture of shared growth between large enterprises and SMEs.

Direct Link to POSCO Shared Growth (only in Korean)

Program Achievements

  • Benefit Sharing

    70.5 billion KRW

  • Smart Capability Enhancement

    Supported 193
    companies

  • Direct Payment System for 1st and 2nd Tier Suppliers

    68.8 billion KRW settled

  • Steel ESG Win-win Fund

    92.8 billion KRW

  • POSCO PHP Volunteer Group

    211 companies participated

  • POSCO Youth Dream Job Matching

    191 people employed

  • Shared Growth Support Team

    Supported 155 projects

  • Startup Incubation

    30 business matched
Benefit Sharing
In 2004, POSCO became the first in the country to introduce the Benefit Sharing system, collaborating with partner companies on improvement activities and sharing the resulting benefits. Participating companies receive cash compensation for 50% of the financial gains from their projects and are offered various incentives, including long-term supply contracts for up to 5 years, to encourage technology development and sales growth.
Smart Capability Enhancement
POSCO operates the ‘QSS Manufacturing Innovation’ program, which transfers its unique innovation methodology, ‘Quick Six Sigma’ (QSS), to SMEs. This program aims to improve work environments and production processes and establish a foundation for process smartification, aligning with the Fourth Industrial Revolution. Leveraging this innovation capability, POSCO is jointly operating the ‘Win-Win Smart Factory Support Program for Large Enterprises and SMEs’ with the Ministry of SMEs and Startups. This initiative applies advanced IT technology throughout the entire production process, from design and manufacturing to distribution, to support the establishment of smart factories.
Direct Payment System for 1st and 2nd Tier Suppliers
POSCO was the first among domestic private companies to introduce the ‘Subcontracting Win-Win Payment System,’ which guarantees payment recovery by directly paying subcontracting payments to 2nd tier partner companies. Additionally, since 2022, we have implemented the ‘nomubi.com system,’ which directly deposits labor costs into workers’ accounts in cash, effectively eliminating potential risks related to wage arrears.
Steel ESG Win-Win Fund
In 2022, POSCO, Hyundai Steel, and IBK Industrial Bank of Korea jointly established a 200 billion KRW fund to provide SMEs in the steel industry with low-interest loans for ESG management. Any steel company interested in enhancing its ESG management capabilities can apply, regardless of whether they have transactions with POSCO or Hyundai Steel. They can receive loans of up to 2 billion KRW for up to 3 years at an interest rate reduced by 1.45%p.
POSCO PHP(POSCO Honored Partner) Volunteer Group
POSCO PHP Volunteer Group is a participatory program where partner companies and POSCO collaborate to engage in diverse contribution activities within local communities, both materially and non-materially. The program avoids superficial volunteer activities, instead focusing on addressing the pressing issues of vulnerable groups and local communities. This approach aims to achieve greater satisfaction for both participants and beneficiaries.
POSCO Youth Dream Job Matching
Leveraging POSCO’s education and training infrastructure, we offer practical education and training essential for job performance to young job seekers. Additionally, we operate an employment support program that connects these individuals with partner SMEs that have immediate recruitment needs, facilitating prompt employment opportunities. This includes the ‘Large Enterprise and SME Win-Win Job Program’ and the ‘POSCO Employment Academy,’ aimed at young job seekers who wish to work at partner companies and SMEs. Additionally, POSCO addresses youth employment issues and the recruitment challenges of local SMEs by offering financial incentives for hiring qualified talent, thus strengthening corporate capabilities.

[Partner Company Training Details]

・Training Content: Basic job competencies for employees of partner companies, SMEs, and youth
・Training Targets: Agreement signing and training for a total of 491 companies, including partner companies and subcontractors
    * POSCO Group partner companies/suppliers account for 482 companies (98% of training targets)
 ・Training Performance: Trained 20,634 people in 2023 (20,220 through group training, 414 through e-learning online training)
Category

Consortium Training (since 2005)

Customized Corporate Demand Training (since 2020)

Work-Learning Dual Training (since 2015)

Pre-Employment Training (since 2014)
Concept

Establishing an industry-led regional job training foundation to improve basic job competencies

Design and operate training programs through job analysis of agreement companies

OJT based on fieldwork, combined with Off-JT

*Consortium Off-JT training

Basic job competency program for young job seekers

*Consortium Off-JT training
Target

All employees of agreement companies

All employees of agreement companies

New employees within 1 year of service

Young job seekers
Content

On-site technical skills acquisition/cultivation

Includes training in machinery, electrical, welding, crane operations, etc.

Covers organizational management, leadership, safety, ESG, innovation, character development, etc

Analysis of core tasks and support for designing and building training roadmaps

Provides career development pathway design

16 job categories related to duties within the National Competency Standards (NCS), including mechanical elements, power machinery, forklifts, cranes, etc

Competencies required for employees, including character, communication, and vision planning

Understanding field steelmaking processes/equipment, mechanical/electrical theory and practice

Duration

Minimum 4 hours per person In-person/e-learning

Minimum 4 hours per person, in-person

200 hours per person (1 year training), in-person

350 hours (2 months), residential training
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Trainees practicing ultrasonic testing for equipment diagnosis at the Employment Academy

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Trainees attending an electric welding practice lecture for equipment diagnosis at the Employment Academy

Shared Growth Support Team
Launched in 2021, the Shared Growth Support Team is a dedicated consulting organization for SMEs, comprising experts with an average of over 25 years of experience in various fields at POSCO. These experts act as consultants, offering tailored consulting services that leverage their expertise and know-how to address the challenges faced by SMEs, such as securing new workforce and enhancing technology development capabilities. The team also supports company-specific areas of interest, including smart factories, safety and energy savings, ESG management support, equipment and process optimization, and technology sharing and innovation support.
Startup Support
POSCO is the first major domestic company to initiate the discovery and incubation of startups, operating support and incubation programs for outstanding startups. The CHANGeUP GROUND and Manufacturing Incubating Center have become premier incubation spaces, leveraging the best industry-academia-research infrastructure in the country. Through comprehensive support throughout the startup lifecycle, POSCO fosters the growth of outstanding startups. Additionally, POSCO solicits ideas from startups less than 3 years old, supports networking with investors, and directly invests up to 500 million KRW through the Idea Market Place (IMP) in-house startup incubation program ‘POVENTURES.’ POSCO also operates the nation’s first private autonomous ‘Pohang Center for Creative Economy and Innovation,’ positioning itself as a hub for startup incubation.