South Korea’s steel giant POSCO has announced the creation of its first Corporate Venture Capital (CVC) Fund No. 1, valued at KRW 50 billion ($35.95 million), to accelerate innovation in steelmaking and secure new growth opportunities.
The fund will be capitalized with KRW 40 billion ($28.76 million) from POSCO and KRW 10 billion ($7.19 million) from POSCO Technology Investment, with the inaugural meeting scheduled for August 29.
Purpose of the CVC fund
Through this fund, POSCO will support digital transformation, energy efficiency, and renewable energy projects, drive carbon reduction technologies critical for low-carbon steelmaking, allocate 20 percent of capital to overseas startups, strengthening global innovation ties, and evaluate startups on technological value, financial stability, and strategic fit.
Collaboration with startups
POSCO plans to launch joint R&D projects, pilot programs, and integrate startup technologies directly into its steelmaking processes. These collaborations aim to advance smart manufacturing, accelerate low-carbon steel production and strengthen POSCO’s competitiveness by securing new growth engines.
Management and strategic vision
The fund will be managed by POSCO Technology Investment, leveraging its experience in POSCO’s business areas. A company spokesperson emphasized that the CVC fund will enable collaboration with startups in AI, energy transition, and decarbonization, positioning POSCO as a leader in sustainable steel production and future growth.
Group-wide expansion of CVC initiatives
This launch follows POSCO International’s creation of a KRW 25 billion ($18 million) CVC fund on August 13, signaling a group-wide shift toward business-unit-specific funds instead of centralized investments under POSCO Holdings.