POSCO Group, a leading South Korean conglomerate specializing in steel and battery materials, plans to raise up to 1 trillion won ($691 million) as the country’s first corporate bond issuer in 2025. According to the KED Global, POSCO, which operates under POSCO Holdings Inc., is set to launch a bookbuilding for corporate bonds worth 500 billion won on January 6, with the possibility of expanding the issuance to 1 trillion won based on investor demand. The bonds will offer a range of maturities, including 2-year, 3-year, 5-year, and 7-year options. A group of prominent underwriters, including NH Investment & Securities, KB Securities, Korea Investment & Securities, Samsung Securities, Mirae Asset Securities, and Kiwoom Securities, will manage the issuance.

POSCO Group is a significant issuer in South Korea's corporate debt market. However, the group has taken a more conservative approach to fundraising this year, especially during the first half. Following the issuance of 155 billion won in corporate bonds by POSCO E&C Co. in March, the group's affiliates refrained from tapping the domestic debt market. Under the leadership of Chairman Chang In-hwa, who assumed office earlier this year, the group has prioritized structural reforms, cost reductions, and improving operational efficiency over increasing debt levels. This cautious stance has helped the group maintain financial discipline in a challenging global economic environment.

In the second half of 2023, however, POSCO Group shifted its strategy towards more aggressive fundraising. In July, POSCO Future M Co., a subsidiary focusing on battery materials and steel manufacturing equipment, issued 600 billion won in corporate bonds to repay maturing debt and fund its nickel-cobalt-aluminum cathode materials plant in Gwangyang, South Jeolla Province. This move was part of the company’s broader strategy to strengthen its position amid the temporary slowdown in electric vehicle (EV) demand, referred to as the "EV chasm." Additionally, POSCO Future M raised another 600 billion won through hybrid bonds to invest in strategic projects, further bolstering its market competitiveness.

POSCO International Corp., the group's trade and energy subsidiary, also joined the fundraising efforts by issuing 300 billion won in corporate bonds in September. According to the KED Global, POSCO Group is expected to take an even more proactive stance on liquidity management in 2025. The group is set to increase investments in its core steel business as well as its growing battery materials sector, which is seen as crucial to the future of the company. Significant funding is also anticipated for the group’s ventures into emerging technologies like robotics and artificial intelligence. Chairman Chang has pledged to focus on expanding the group’s electric vehicle battery materials business, positioning it as a key driver of future growth. The group’s shift towards strategic investments reflects its commitment to enhancing long-term value and securing a leadership position in the global market for advanced materials.