Dec 14, 1998 : ADR offering of 5.87%.
Jul. 19, 1999 : ADR offering of 8.00%.
Dec.28, 1999 : POSCO's buyback of 3.00%.
Jun. 14, 2000 : POSCO's buyback of 3.00%.
Oct. 4, 2000 : ADR offering of 4.60% and POSCO's buyback of 2.24%

The Korea Development Bank, which is wholly owned by the Government, sold all of its remaining POSCO shares of 6.84% on October 4th, 2000. Of the 6.84%, KDB issued 4.60% of ADRs and POSCO repurchased 2.24% as treasury stock.

The complete privatization of POSCO produced the following benefits:
1) Abolishment of the 3% individual ownership limit.
2) Elimination of the 30% foreign ownership limit.
3) Removal of "stock overhang".
4) Increased management efficiency through enhanced corporate governance.

Vision : Creating Another Success Story

Strategic Target: Become a global leader targeting Big 3, Top 3

Major Strategy : 3S strategy
Size Up (Growth): Global capacity of over 50 million ton by 2018
Maintain global strategy focusing on three regions
Speed Up (Competitiveness): Strengthen competitiveness throughout entire process
Establish new business model and way of working for global business environment
Synergy Up (Group Management): Maximize group value through strengthened subsidiaries?competitiveness

In August 2000, we formed a strategic alliance agreement with Nippon Steel under which Nippon Steel will acquire shares of up to an aggregate of 3% of our total outstanding shares.

In October 2006, for the purpose of expanding cooperative spheres for strategic alliance, two companies entered into an agreement under which Nippon Steel will acquire POSCO shares of up to an aggregate amount of JPY 55 billion, and POSCO to acquire the same amount of Nippon Steel shares.

Strategic cooperation is now extended to exchange slabs, cooperate on by-product recycling, and continue joint studies on the other cooperative measures, such as raw material procurement.


Equity Acquisition:

	Acquisition of NSC stock by POSCO	Acquisition of POSCO stock (DR)by NSC
~'05 # of shares Equity Stake '06~'07 # of shares Equity Stake Total (As of '08/e)	147,876,000 2.17% 90,476,000 1.33% 238,352,000 3.50%	2,894,000 3.32% 1,500,000 1.72% 4,394,000 5.04%

Key Areas for strategic cooperation between the two companies include: Raw material procurement & development
Joint venture investments in countries outside of Korea and Japan.
Development of new technology / cooperation on research & development.

The FINEX process produces hot metal with quality equivalent to the conventional blast-furnace process using a direct charge of iron ore fines and non-coking coal. It is an eco-friendly process designed to meet the increasingly strict environmental regulations of the 21st century.

The FINEX process eliminates the need for the sinter and coke plants required to process raw materials for the traditional blast-furnace process, dramatically reducing the start-up investment costs, operating costs, as well as the pollutant emissions.

In detail, it can reduce the start-up investment costs by 20%, operating costs by 15%. And most importantly, 97% of the SOx, 99% of the NOx, and 72% of the dust can be reduced.

We began laboratory testing of the FINEX process in 1992 and completed a 600,000ton demo plant in May 2003.

In May 2007, we successfully built a commercialized FINEX plant with capacity of 1.5million ton. Since then, FINEX plant has been achieving normal operation targets with superior cost competitiveness and environmental benefits over conventional blast furnace.

POSCO established environment standard and rule, which is much severer and tighter than the government standards, based on ISO-14001 to preserve the natural environment and to change the impression of steel industry. POSCO recycles 98% of industrial water and 98% of industrial wastes. You can find details at "Sustainability" menu.

The fundamental purpose of what we call "PI" is to maximize investor and corporate value by enhancing business efficiency and transparency through the realignment of business processes around the customer and the construction of an ERP-based integrated information system. The master plan for the first phase of the initiative was unveiled in January 1999 and culminated with the "big bang" launch of our POSPIA integrated information system on July 2, 2001. In 2003, we will be implementing a web-based enterprise portal system that will continue to enhance our organizational efficiency.

Looking at the achievements of PI to date, our order lead time has been slashed from 30 days to just 14 days, our domestic on-time delivery performance has jumped from 74% to 97%, and our product inventories have dropped from the 1 million ton level to around 400,000 tons. The second phase of PI or "PI-2" was launched in January 2002 and is now expanding the initiative to include customer and supplier relationship management. We believe that POSCO will have a first-class business system that truly embodies the world's best practices.

e-Sales
On August 30, 2000, POSCO launched Steel-N.com, an internet-based cyber steel market platform.
The site creates markets for products such as hot-rolled products, plates, cold-rolled products, and all secondary products produced in excess to meet minimum production.
The trade volume reaches approximately 600,000 tons per annumon 200 billion. One key benefit from the site comes from the ability to charge on the higher sales prices on-line than off-line.

e-Procurement
In 2000, POSCO entered into a joint venture agreement with Korea Telecom, Hanjin, and Hyundai to establish Korea's largest B2B electronic commerce company ("eNtoB"). The joint venture equally owned by the four companies, begins operations January 2001.
eNtoB provides online solutions in procurement and sales of office equipment, furniture, and general supply items, as well as secondary materials used for the maintenance and operation of such items. The Internet-based MRO solutions help four companies reduce MRO expenses, in addition to assisting them with the capability to offer an extensive array of products and purchasing options.

Backed by the excellent business performance, POSCO determines the dividends in line with its shareholder-oriented management policies such as enhancing investment returns to investors and positioning POSCO as a value stock.

To this end, POSCO plans to implement a stable and long-term dividend policy under which investors can expect predictable dividends based on the absolute amount of dividend payments.

For the year of 2008, POSCO made a payment of KRW 10,000 per share including interim dividend of KRW 2,500 per share.

You can find dividend history at 'Stock Information'.

To increase our shareholders' value, POSCO has been making appropriate decisions on the treasury shares since 2001.

In 2007, POSCO executed acquisition of the treasury shares, 3% of the total shares

Numbers of shares purchased in 2007	Rate
2,615,605	3.0%

*Accumulated number of treasury shares as of end of 2008: 10,616,919 (12.18%)

Plan of the retained treasury shares (12.18%):
POSCO doesn't have concreted plan yet, but POSCO plan to use for increasing shareholder's value.

POSCO issued ADR 8 times back in Oct 22 1994 to Nov 21 2005. Total number of DR and share is 135,170,760 and 33,792,690 (38.8%) respectively.

Convertibility Every owners of DR could easily convert theirs to shares. But not every owners of shares could convert to DR. Shares could convert to DR within a portion which was converted from DR to shares. If the portion who wants to convert to shares is exceed the rule mentioned in the previous sentence, the process of convertibility should get prior approval by POSCO.

A(Stable) by Standard & Poors and A1(Stable) by Moody's.

You can download soft copy of our annual reports from 'Annual Reports' menu in 'IR Archive'.