Rep. Kim Jung-jae of the main opposition People Power Party talks with POSCO President Chon Jung-son at her office in Pohang, North Gyeongsang Province, Friday. Courtesy of Kim's office

By Park Jae-hyuk

POSCO has finally accepted the request of Pohang residents and promised to relocate its holding company to the southeastern port city from Seoul, the steelmaker said Friday.

"We will convince our board members and shareholders to relocate our holding company to Pohang by March 2023," the company said. "Our research facility will also be headquartered in Pohang."

The decision was announced a few hours after POSCO President Chon Jung-son visited main opposition People Power Party lawmaker Rep. Kim Jung-jae's office in Pohang, North Gyeongsang Province.

The lawmaker said that the POSCO president vowed to convince the board members and shareholders to revise the company's articles of association for the holding firm's relocation.

POSCO also decided to set up its research facility in the port city as well as the capital region, considering concerns among Pohang residents about a possible outflow of talented researchers from the city, according to the lawmaker.

"POSCO's hometown is Pohang," Chon was quoted as saying. "We will make more efforts to harmonize with Pohang."

Since POSCO unveiled its plan to establish a holding company in Seoul last December, Pohang residents have protested the plan, expressing concerns about an outflow of the workforce and a reduction in tax revenue, despite the company's continuous denial. The four leading presidential candidates had also urged the company to reconsider its plan.