From a newly launched venture capital fund to its regional incubation hub, South Korean steel giant Posco Group is fostering startups through financial investment and technical support.
Posco Group in August launched a 50 billion won ($35.4 million) corporate venture capital fund to invest in startups with core technologies that align with the group’s future growth strategies. These include digital transformation, energy efficiency, carbon reduction and renewable energy.
About 20 percent of the fund is allocated to overseas startups to link with the global innovation ecosystem. Through a rigorous screening process, the fund aims to evaluate factors such as technology value, financial structure and strategic fit to identify startups capable of leading future innovation.
Beyond financial investment, Posco is bolstering grassroots innovation through industry-academia cooperation, following the launch of its venture support group last year.
Posco has deployed 55 Ph.D.- and master’s-level researchers to provide technical support for local startups in regions including Gwangyang, South Jeolla Province, and Pohang, North Gyeongsang Province.
In 2024, the venture support group conducted 31 rounds of technical consulting for 16 beneficiary companies, ranging from smart factory construction to robotics automation.
Furthermore, it selected 11 local startups in fields such as equipment and control systems, composite materials, and secondary battery materials to offer customized advisory services in July.
Posco also operates Change Up Ground, a venture incubation complex built with an investment of around 83 billion won.
Opened in July 2021 on the campus of Pohang University of Science and Technology, it was designated the first non-capital-region TIPS (Tech Incubator Program for Startup) under a public-private partnership.
Now in its fourth year, Change Up Ground hosts 81 companies employing over 1,000 people, with a combined corporate value of 1.49 trillion won.
In addition, Posco runs a range of programs aimed at strengthening the competitiveness of small and medium-sized enterprises. The shared growth support group dispatches experts to provide tailored solutions to pressing business challenges.
The smartization program helps companies digitalize their production processes, while the benefit-sharing initiative enables Posco to jointly carry out projects with smaller firms and share the resulting achievements.
andreahaneu@heraldcorp.com
