이 기사는 2021년 09월 10일 08:00 thebell 에 표출된 기사입니다.

Posco Group and GS Group have put history behind them to work together for future growth drivers, as South Korean conglomerates increasingly opt for collaboration rather than competition.

Posco chairman Choi Jeong-woo and GS chairman Heo Tae-soo met on Tuesday to discuss collaboration on new business opportunities.


The history between the two groups dates back to 2008, when they participated in the bidding for Daewoo Shipbuilding & Marine Engineering. The bidding war was a four-way battle between Posco, GS, Hanwha and Hyundai Heavy Industries.

Then Posco and GS teamed up to jointly acquire the company, emerging as the frontrunner in the race. However, GS abruptly pulled out of the consortium just before the deadline for final offers. Posco submitted a bid on its own, but the bid was treated as invalid, making all efforts in vain.

This chilled the relationship between the two conglomerates. However, now that 13 years have passed, leaders of both groups have changed: Choi stepped in as chairman of Posco in 2018 and Heo took the helm of GS in 2019.

The business environment is also changing fast, with companies shifting their focus to themes like mobility and sustainability to survive future disruptions.

Posco and GS will strengthen their collaboration in five areas: battery recycling and new mobility, hydrogen energy, venture capital investment, eco-friendly biofuels and ESG (environmental, social and governance) management.

Both conglomerates have strong distribution networks at home and abroad. Using this advantage, they are set to create a joint venture to supply materials for battery recycling. They will also expand their collaboration in battery swapping services also known as a Battery as a Service.

Posco and GS will also work together to identify new customers in the global hydrogen energy market. They will collaborate across all value chains including production, storage and transportation.

In the biofuel sector, palm production and processing facilities owned by Posco International and GS Caltex's biofuel production technology and sales network will be utilized to expand the presence of the two groups in the market.

“The partnership between GS and Posco highlights increasing collaborations between South Korean conglomerates,” said an industry insider. “This represents a shift from competing for a bigger market share in the past toward working together to enter new markets in a fast changing business environment.” (Reporting by Ki-soo Park)