POSCO Group, which owns South Korea’s largest steelmaker, plans to build a second research institute near Seoul to support the conglomerate’s three core businesses – artificial intelligence, battery materials and low-carbon hydrogen energy.
POSCO Holdings Inc., the investment holding company of the steel giant, has been designated as a company to join the soon-to-be-launched fourth industrial cluster in Wirye, Seeongnam, a city near Seoul, people familiar with the matter said on Thursday.
The company will build a replica of its first research institute POSCO N.EX.T Hub on a plot of 55,537 square meters at the Wirye industrial cluster, sources said. Given regulatory procedures, including obtaining a construction permit, the research center is expected to break ground near the end of 2024 with completion likely three years later, they said.
Seongnam city government officials will soon announce details of the plan, sources said.
In April, the steel giant opened POSCO N.EX.T Hub in Pohang, North Gyeongsang Province, to lead the conglomerate’s R&D efforts in AI and eco-friendly future materials. The group’s business headquarters and major production facilities are located in Pohang.
POSCO N.EX.T Hub leads the group's R&D efforts in core businesses (Photo captured from POSCO Holdings' website) Kim Ji-yong, director of POSCO N.EX.T Hub and chief technology officer of POSCO Group, said the Pohang research center was built to closely work with industry experts, academia and venture firms in the region, to advance AI, battery materials and hydrogen technologies.
CLOSER TO SEOUL TO RECRUIT TALENT
Industry officials said POSCO is building its second N.EX.T Hub institute near Seoul to facilitate the hiring of highly skilled and talented researchers.
“Highly talented researchers at the doctoral level prefer Seoul and its suburbs over remote rural areas as their workplace. The location is as important as salaries,” said Choi Jang-wook, professor of the Chemical and Biological Engineering Department at Seoul National University.
POSTECH, or Pohang University of Science and Technology, is operated by POSCO Holdings At its second research center in Seongnam, POSCO is expected to seek collaboration with prestigious universities and research institutions in the capital region as well as Silicon Valley tech firms in the US, industry officials said.
POSCO joins other conglomerates establishing R&D centers in Seoul and the metropolitan area, including Pangyo, Korea’s answer to Silicon Valley.
Earlier this year, POSCO Group announced seven key business sectors to drive its future growth, including battery materials, hydrogen, energy, food and steel.
As part of its corporate revamp, the steel giant last year launched a holding company, with a vision to become a company focused on eco-friendly materials and with half of the group profits coming from non-steel business, up from the current 20%.
Write to Hyung-Kyu Kim at khk@hankyung.com In-Soo Nam edited this article.
