POSCO : CEO Letter to Shareholders

March 23, 2020

Dear Shareholders of POSCO,

First, I sincerely thank you for your ongoing support and trust in POSCO. I am sure that the recent COVID-19 outbreak has changed much of your work and daily life. I hope all the situation will return to normal as soon as it can.

In 2019, the global steel industry underwent one of the hardest periods due to multiple reasons from economic recession caused by trade dispute and

addition to this, we are in an expansion of cathode and anode capacity to prepare for the new mobility era with our strong growth potential in the secondary battery material business.

Based on this strategy, POSCO recorded 2.6 trillion KRW of operating profit on a parent basis with 8.5% operating margin and 3.9 trillion KRW consolidated operating profit in 2019, demonstrating its sound performance in comparison to global peers. In January BOD meeting, POSCO board members resolved to pay out 10,000 KRW per share dividend for the fiscal year of 2019 maintaining the leveled up DPS for two consecutive years, in which we will seek for the approval from our shareholders in the upcoming AGM.

최해연(haeyeon.choi), 2020-03-25 08:11:07, CONFIDENTIAL 포스코 허락없이 출력정보 훼손 또는 무단유통시 법적책임이 있습니다.

Our endeavors were also highly recognized by external evaluation institutions that paid attention to our strong commitment to 100 innovation goals and successful completion of them. A world-renowned steel research institution World Steel Dynamics(WSD) selected POSCO as "the most competitive steelmaker in the world" for ten years in a row. World Economic Forum(WEF) named POSCO as "Lighthouse Factory," first among Korean companies, that leads the future of global manufacturing industry. Through this, POSCO again showcased its firm status as a leading steelmaker in the global market.

In the beginning of 2020, we face unprecedented coronavirus pandemic

saving and adjustment of investment priorities. In every measure, profitability and financial soundness would be pursued with the highest urgency.

In POSCO's group portfolio, we will continuously evolve businesses in the segments of energy, E&C and secondary battery materials. Among them, secondary battery materials will become our future core business, in which we are in the course of expanding cathode and anode capacity, raising marketing capabilities and strengthening R&D power for next-generation products. Non-core and low-profitability businesses will continue to restructured and capital spending for future growth will be prioritized. In the mean time, our most pressing task is to thoroughly review how we return to shareholders with our excess cash.

최해연(haeyeon.choi), 2020-03-25 08:11:07, CONFIDENTIAL 포스코 허락없이 출력정보 훼손 또는 무단유통시 법적책임이 있습니다.

Dear Shareholders of POSCO,

Before I finish my letter, let me share this quote with you. "The storm will pass. The spring will come." What we see today is unheard of, but POSCO will overcome this crisis by closely cooperating with its business partners and ultimately create higher corporate value based on the stronger industrial ecosystem. I promise you that we will work harder to satisfy your expectations through endless innovation.

I wish you and your family good health and happiness for the year 2020.

Chief Executive Officer

POSCO

최해연(haeyeon.choi), 2020-03-25 08:11:07, CONFIDENTIAL 포스코 허락없이 출력정보 훼손 또는 무단유통시 법적책임이 있습니다.