Is Dongkuk Steel boycotting POSCO-led business lobby?

Dongkuk Steel Vice Chairman Chang Sae-wook, left, and POSCO Group Chairman Chang In-hwa / Courtesy of each company

Questions are growing as Dongkuk Steel has yet to rejoin the Korea Iron & Steel Association (KOSA), after the company left the business lobby for steelmakers after its launch of a holding firm structure last year, according to industry officials, Monday.Its apparent hesitancy has been attributed by many industry officials to its discord with POSCO, the nation’s largest steelmaker that leads the KOSA.Last year, POSCO drew a backlash from mid-size steelmakers, such as Dongkuk Steel and Daehan Steel, as it started supplying coiled reinforcing bars.Dongkuk Steel and POSCO have also differed about antidumping tariffs on imported steel sheets. Unlike POSCO and Hyundai Steel which have supported the tariffs, Dongkuk Steel and other importers of hot-rolled steel plates have opposed the idea due to a possible rise in their production costs.However, Dongkuk Steel denied speculation that its feud with POSCO is the reason behind its delayed return to the KOSA.

“Dongkuk Holdings is not obliged to join the KOSA, as it is not doing the steelmaking business,” a Dongkuk Steel official said. “Dongkuk Steel and Dongkuk CM are deliberating on whether to rejoin the association.”Industry officials are paying attention to whether the POSCO Group chairman will meet with the Dongkuk Holdings vice chairman to convince Dongkuk Steel to rejoin the KOSA before the Day of Steel on June 9, the largest annual event for the steel industry.Last June, Dongkuk Steel was spun off into Dongkuk Holdings, which serves as a holding company, and two other entities — Dongkuk Steel, which is in charge of the hot-rolled steel business, and Dongkuk CM, which produces cold-rolled steel.Since then, the steel company has not rejoined the KOSA.Dongkuk Holdings Vice Chairman Chang Sae-wook and Dongkuk Steel CEO Choi Sam-young were absent from the KOSA’s extraordinary general meeting on April 30, when POSCO Group Chairman Chang In-hwa was appointed the new leader of the association.In addition, Dongkuk Steel officials did not participate in the KOSA’s marathon event on May 18, despite the participation of some companies that do 슬롯사이트 not belong to the association.

Leave a Reply

Your email address will not be published. Required fields are marked *