A resident of Pohang, North Gyeongsang Province, signs a petition at a traditional market in the city, Friday, to protest POSCO's plan to establish its holding company in Seoul. Yonhap

By Park Jae-hyuk

Three leading presidential candidates are all criticizing POSCO for its plan to establish a holding company in Seoul, instead of in Pohang, North Gyeongsang Province, where its headquarters and steel mill are located.

Last Friday, Lee Jae-myung of the ruling Democratic Party of Korea wrote on social media that he opposes POSCO's plan.

"POSCO, the only conglomerate that located its headquarters in North Gyeongsang Province, is the pride of the province and the symbol of balanced regional development," he said. "POSCO's decision to relocate its headquarters to Seoul goes against its late founder's spirit to take on challenges and its historical mission. It is also opposed to the spirit of the times, which pursues balanced development."

Democratic Party of Korea presidential candidate Lee Jae-myung, center, shakes hands with a merchant at a traditional market in Pohang, North Gyeongsang Province, in this December 2021 file photo. Yonhap

Yoon Suk-yeol of the main opposition People Power Party also stands with North Gyeongsang Province Governor Lee Cheol-woo and Pohang Mayor Lee Kang-deok against POSCO.

"I oppose POSCO's retrogressive plan to set up its holding company in Seoul," Yoon said on Jan. 27, when he met the governor and the mayor at the party's headquarters.

Politicians from Pohang, North Gyeongsang Province, pose with People Power Party presidential candidate Yoon Suk-yeol, second from left, at the party's headquarters in Seoul, Jan. 27, after delivering their negative opinion about POSCO's plan to set up a holding company in Seoul. Courtesy of the North Gyeongsang Provincial Government

Ahn Cheol-soo of the minor opposition People's Party, who previously served as the chairman of POSCO's board of directors, told Pohang residents Monday that he will urge the steelmaker to establish its holding company in the city.

"POSCO should not leave its hometown of Pohang," he said in his meeting with the residents, following his visit to POSCO's steel mill earlier that day. "Even if it establishes a holding company, its headquarters should stay in Pohang."

People's Party presidential candidate Ahn Cheol-soo, right, shakes hands with one of the Pohang residents protesting POSCO's plan to establish its holding company in Seoul, during his visit to the city in North Gyeongsang Province, Monday. Yonhap

Since POSCO's shareholders gave their approval on Jan. 28 for the company's plan to set up a holding company and spin off a subsidiary in charge of the steelmaking business, POSCO has emphasized that it has no choice but to locate its holding company in Seoul and its research facility in the capital region.

"The establishment of POSCO's holding company will not cause an outflow of the workforce nor a reduction in tax revenues, because the strategy and planning division in our Seoul office will transform into the holding company," POSCO Vice Chairman Kim Hak-dong said in a press release last Tuesday. "It was inevitable for us to establish a research facility in the capital region to attract talented scientists both from here and overseas."

The Pohang City Government, however, organized a taskforce led by Deputy Mayor Lee Jang-sik to counter POSCO's plan more systematically.

The city government said that the taskforce will present the potential problems resulting from POSCO's establishment of a holding company in Seoul. It also started a campaign last Friday to protest the steelmaker's plan. According to the taskforce, more than 64,000 Pohang residents signed a petition just two days after the campaign began.