- POSCT ICT, POSCO and Seoul Semiconductor jointly invest 30 billion won in the venture
- Targets special lighting market segments in national defense, medical care, and agro-fishery sectors, as well as industrial lighting

A ceremony was held to celebrate the Incorporation of POSCO LED (CEO, Hur Nam-suk), the new venture for POSCO’s entry into the LED lighting business.

POSCO LED is capitalized at approximately 30 billion won: POSCO ICT holds a 63.3% stake, while Seoul Semiconductor and POSCO possess 20% and 16.7% stake respectively. Hur Nam-suk, CEO of POSCO ICT, will concurrently serve as the new company’s CEO.

The launch ceremony, held on September 29, was attended by more than 100 participants including POSCO CEO and chairman Chung Joon-yang; POSCO president Choi Jong-tae; Daewoo International CEO Yoon Hyung-keun, and Seoul Semiconductor CEO Lee Jung-hun.

POSCO LED established a strategy for generating business synergy by providing a full spectrum of LED lighting products and services ranging from the supply of LED lighting products to the development of lighting systems and control solutions. POSCO LED is already equipped with the necessary internal production infrastructure, and will release industrial lighting products such as factory lamps, streetlamps, security lamps, and floodlights, as well as outdoor lighting products will also be released shortly. To implement the strategy, POSCO LED will obtain government certifications, and concentrate on the execution of conventional lighting replacement projects on behalf of government and public agencies, together with the B2B market, which covers factories and new buildings. The scope of its business will be expanded to the B2C market for general consumers in the future, and entry into overseas markets is also in the plan.

Significant synergy effects are expected, as POSCO LED can produce the products using various LED elements provided by Seoul Semiconductor, and will benefit from the cooperation of POSCO affiliated companies such as POSCO ICT, POSCO E&C, and Daewoo International. In particular, POSCO LED plans to combine LED lighting with intelligent building system (IBS) and u-Eco city projects, by utilizing POSCO ICT’s technologies and know-how in the IT area, and promote linkage with smart grid projects. The Synergies from cooperation with Daewoo International, which recently became an affiliate company, are expected to provide further completive edge.

The founding ceremony also drew attention with the announcement that POSCO LED has set itself the mid-term goal of becoming a global top 10 company by 2015 with revenues of 1 trillion won, and climaxed with the win-win cooperation agreement signing ceremony for consolidate cooperative relationships with its partners.