ABP / APG: Request to POSCO Korea: Withdraw from Myanmar
-Dutch pension fund demands POSCO-
2021/04/06
Korean Steel POSCO:
Recently, it was revealed by April 5 that “we are having a hard time responding to the business in Myanmar where a military coup d’etat occurred.”
“The proceeds of POSCO’s Myanmar business could flow to the military in Myanmar,” he said.
Shareholders and foreign institutional investors are demanding POSCO to withdraw from Myanmar.
For POSCO Korea, “withdrawing from a business that has been focused on for more than 20 years” is not easy.
Dutch Civil Service Pension Fund ABP:
Management subsidiary APG:
Recently, POSCO has been urged to break its ties with the Myanmar military.
Other foreign funds are said to be exerting the same pressure as POSCO.
APG is a shareholder of POSCO.
Since it is below the published standard (5%), the exact investment ratio has not been clarified.
Source of funding for the Myanmar military:
In 1997, POSCO Steel Sheet, a member of POSCO, established a joint venture with MEHL of the Myanmar military.
In 2013, we established another joint venture with MEHL to produce colored steel sheets.
The profits of these joint ventures “have been a source of funding for the Myanmar military through MEHL,” he said.
Chosun Online | Chosun Ilbo
http://www.chosunonline.com/m/svc/article.html?contid=2021040680001
POSCO under Pressure to Cut Relationship with Myanmar Military
South Korean companies’ business
ties with the military of Myanmar are being increasingly condemned along with the military.
Especially, even shareholders, not to mention human rights groups, are urging
POSCO to sever its relationship with the Myanmar military.
Dutch pension fund APG,
one of the shareholders, made the demand via the Financial Times on April 5.
Last month, Japanese beverage company Kirin Holdings
stopped its joint business with the military’s Myanma Economic Holdings Limited,APG said, urging POSCO to take the same step.
POSCO International and Myanma Oil and Gas Enterprise
have developed offshore gas fields together in Myanmar since 2000
and the natural gas have been sold to China, Myanmar and other countries.In addition, POSCO C&C and MEHL
set up Myanmar POSCO C&C as a joint venture in 2013 and MEHL currently has 30 percent of the steel sheet company.
On March 22, human rights group Justice for Myanmar
exposed MEHL’s international business relations to denounce POSCO.
At that time, JFM pointed out that
99 international groups and enterprises are related to POSCO and stopping doing business with the South Korean company can be a way to support democracy in Myanmar.
Businesskorea
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