Policy

    Corporate Governance Charter

    POSCO aspires to be a strong and reputable global company, embodying its management philosophy of contributing to customers and human society by providing valuable products and services that underpin the social foundation. Establishing sound corporate governance is the cornerstone for earning the trust of all stakeholders and ensuring diligent management activities. With a firm belief that this is the path to realizing the ideal of a leading global company, we hereby establish this Corporate Governance Charter.

    POSCO is committed to enhancing the balanced rights and interests of shareholders, customers, employees, and other stakeholders by fostering transparent, ethical, and responsible management under the supervision of an independent board of directors, in accordance with this Charter.

    Tax Management Policy

    • POSCO faithfully complies with tax reporting and payment obligations not only under domestic regulations but also under the regulations of each country where we conduct business activities. We maintain transparent relationships with tax authorities in each country and diligently fulfill our taxpayer obligations, including the submission of documents as required by relevant laws.
    • POSCO adheres to the principle of conducting arm’s length transactions in accordance with the OECD Transfer Pricing Guidelines and the regulations of each country when dealing with related parties. For transfer pricing transactions with overseas related parties, we prepare BEPS1) reports and transfer pricing reports in collaboration with external tax experts to ensure compliance.
    • POSCO adheres to the regulations of each country where it operates, faithfully fulfilling its tax obligations. We do not engage in transactions or contracts that shift income between countries to exploit differences in tax laws or loopholes in international tax systems. We ensure that taxable income is allocated consistently with the value generated in each country where business activities occur. POSCO does not use tax havens to unfairly reduce tax burdens and faithfully meets its tax obligations for international transactions through standard tax structures.
    • All tax employees of POSCO’s subsidiaries adhere to the tax regulations of each country in accordance with POSCO’s tax policy and perform their duties under the principle of maintaining a transparent relationship with tax authorities.
    • POSCO pays taxes fairly and uses legal procedures, such as appeals and administrative litigation, to contest unreasonable taxation. We share the growth benefits obtained through legal tax-saving measures with society.
    • At POSCO’s global business sites, we proactively review potential tax risks that may arise during business activities, including new business investments, strengthening the competitiveness of existing businesses, and restructuring, to ensure compliance with domestic and international regulations. During the risk review process, decisions are made based on the advice of external tax experts and tax authorities.

    1) BEPS : Base Erosion and Profit Shifting. This involves the erosion of the tax base through income shifting. It refers to the practice where multinational corporations create paper companies in countries with favorable tax rates under tax treaties to avoid paying taxes.