**”Securing Operating Funds…Enhancing Cost Competitiveness”**
POSCO’s Indonesian steel subsidiary, PT Krakatau POSCO, has signed a memorandum of understanding (MOU) with Woori Bank to enhance its steel competitiveness.
On the 17th, a ceremony was held at the Jakarta headquarters of Woori Saudara Bank, the Indonesian branch of Woori Bank, attended by key representatives from both companies, including Jeong Beom-soo, head of PT Krakatau POSCO, and Kim Eung-cheol, head of Woori Saudara Bank.
Under the agreement, PT Krakatau POSCO will receive financial support of 200 million USD, approximately 280 billion KRW, from Woori Saudara Bank for raw material supply and operating capital credit loans.
PT Krakatau POSCO is working to expand the purchase of locally sourced iron ore and coking coal in Indonesia, and through this agreement, it will be able to secure operating funds stably. This is expected to enhance cost competitiveness amid the influx of Chinese imports and promote mutual growth with Woori Saudara Bank.
This year, PT Krakatau POSCO received an investment-grade rating from credit rating agency S&P and successfully issued 700 million USD worth of global bonds. It plans to pursue sustainable growth based on its improved financial structure and profitability.
Kim Eung-cheol, head of Woori Saudara Bank, stated, “We will provide the best support so that our partnership with PT Krakatau POSCO extends beyond short-term financial support and allows us to grow together in the long term.”
Jeong Beom-soo, head of PT Krakatau POSCO, said, “We aim to use up to 30% of local iron ore and coking coal by 2026. By securing financial resources, we will ensure cost competitiveness and provide a stable steel supply, contributing to Indonesia’s economic development.”