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Photo = POSCO FutureM |
[Alpha Biz= Kim Jisun] Seoul, April 24, 2025 — POSCO Holdings confirmed on April 24 that the possibility of a capital increase for POSCO Future M is indeed being considered, due to significant investment costs incurred following inflation after the COVID-19 pandemic, as well as declining product prices amidst unfavorable market conditions, which have resulted in a need for short-term financial support.
During a conference call to announce its first-quarter earnings, POSCO Holdings stated, "We will soon decide on the appropriate timing and method of fundraising, whether through capital increase or additional borrowing, after taking a comprehensive look at POSCO Future M's financial structure and cash situation."
POSCO Future M had previously considered a large-scale capital increase in 2023, but the plan was canceled when Choi Jin-hwa, the new chairman of POSCO, was appointed.
Subsequently, with the emergence of a "chasm" in the electric vehicle (EV) market, industry uncertainties have increased, and profitability has sharply declined, raising the possibility of POSCO Future M pursuing a capital increase.
POSCO Holdings added, "Recently, S&P's credit outlook has been downgraded, and Moody’s maintained the credit rating during its regular review. We are observing how POSCO Future M’s additional borrowing will impact our credit."
POSCO Holdings also noted that following its investment in Hyundai Steel's U.S. plant, it is open to broader collaborations with Hyundai Motor Group.
The company explained, "Cooperation with Hyundai Motor Group could extend beyond steel to include secondary batteries and other regions outside the U.S."
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
