Since 2004, when POSCO became the first company in Korea to implement a performance sharing system, we have carried out joint improvement initiatives with our suppliers and shared the resulting gains. Participating companies receive 50% of the project’s financial outcomes in cash, along with various incentives—such as long-term supply contracts of up to five years—to encourage technology development and business expansion.

Established in 2021, the Shared Growth Support Group provides dedicated consulting services for SMEs, with in-house experts—each with over 25 years of experience in various POSCO fields—serving as consultants. We offer tailored support by aligning expert capabilities with SME needs in areas such as smart factory implementation, ESG management (including safety and energy efficiency), process and facility optimization, and quality improvement. In particular, through the Ministry of SMEs and Startups’ Smart Factory Support Program, we help SMEs integrate advanced IT technologies into their manufacturing sites.

POSCO annually selects outstanding suppliers of equipment, materials, and raw materials through a comprehensive evaluation that includes Supplier Relationship Management (SRM), and certifies them as POSCO Honored Partners (PHP). We provide PHP suppliers with a range of benefits, including exemption from warranty bond requirements, preferential access to steelworks during contract signing, and support from the POSCO Group’s global network for overseas market entry. In addition, PHP suppliers have formed the POSCO PHP Volunteer Corps and are striving to grow together with the local community through various social contribution activities.

Financial Support for Suppliers POSCO operates the Shared Growth Fund to improve the business environment for its suppliers. Jointly funded by POSCO, partner companies, and financial institutions, the fund comprises two components: the Low-Interest Loan Fund and the Steel ESG Shared Growth Fund, both of which provide loans to SMEs at below-market interest rates. The Low-Interest Loan Fund, totaling KRW 566 billion, was established in partnership with IBK, KDB, Woori Bank, and iM Bank, offering loans of up to KRW 4 billion per SME. The Steel ESG Shared Growth Fund, launched in collaboration with Hyundai Steel and IBK, supports ESG advancement among SMEs in the steel sector. In 2022, the fund was expanded from KRW 150 billion to KRW 200 billion, providing three-year term loans of up to KRW 2 billion per SME to help strengthen their ESG management capabilities. 
In addition, POSCO introduced the Subcontracting Win-Win Payment System in 2009, becoming the first private-sector company in Korea to directly pay second-tier suppliers and laborers. This system was designed to reduce payment delays and risks in the supply chain.

POSCO is committed to fostering technology-based venture companies—not only to support its business partners but also to strengthen future value chains and promote balanced regional development. In Pohang, we established CHANGeUP Ground, a venture incubation hub, through collaboration with the POSCO Group, Pohang University of Science and Technology (POSTECH), and the Research Institute of Industrial Science & Technology(RIST). In partnership with Gwangyang City, we are also constructing CHANGeUP Ground Gwangyang, scheduled for completion in 2025. To support early-stage startups, we operate the POSCO Idea Market Place (IMP), Korea’s first nationwide platform for discovering and nurturing promising ventures. We also run an In-House Venture Program, which empowers POSCO Group employees and executives to launch their own startups. In addition, we facilitate business-matching opportunities to support scale-up efforts in areas such as prototyping, investor engagement, and market development. 

Moreover, through the SME Consortium Project, we are helping to address youth unemployment and workforce shortages at local SMEs. This initiative leverages POSCO’s training infrastructure to equip young job seekers with practical, job-ready skills and directly connects them with SMEs seeking new talent.

POSCO operates a training program to develop basic job skills for employees and young people working at suppliers and other SMEs.

POSCO operates the Open Purchasing Consultation Office within its e-Procurement System to receive and address inquiries and grievances from suppliers. In 2024, the office responded to 15 such cases. External stakeholders can also report concerns—either anonymously or under their name—through various channels, including the Unethical Conduct Reporting Center on POSCO’s official website. All reports are handled with strict confidentiality, and whistleblowers are protected from any form of disadvantage, including identity disclosure or retaliation. Once a case is verified, we take appropriate actions through active monitoring and due diligence to resolve the issue.

POSCO has received the highest grade in the Shared Growth Index¹⁾ for five consecutive years.