posco looking for partners March 2017

posco owns 485,000㎡ industrial site, which is located in the central eastern part of Korea. This property was originally developed for the magnesium ingot production plant. However, the plant occupying small area of this site has been shut down. Most of the site is available for instant use for any industry. posco is looking for collaboration partners to revitalize this site. posco will support partners for the successful business in KOREA

Global Leading Steel & Solution Provider About posco Global Leading Steel & Solution Provider A conglomerate covering Steel, E&C, ICT, Trade, Chemical and Energy - Consolidated revenue of 53,083,513 Million KRW 35th of the Most 100 Sustainable companies in the world 2017. - First steelmaker listed three consecutive years (World Economic Forum) DJSI’s sustainable management list for 12 consecutive years - The only steel company ever to be so recognized. World’s Most Competitive Steelmaker for 7th Consecutive Year 2016 (World Steel Dynamics)

Overview 485,000㎥ land available for industrial application. Looking for business partners to collaborate. [History] [Site Conditions] MOU signed for Mg ingot plant (Sep. ‘11) - Gangwon Province, Gangneung City, posco A plan for Okgye industrial site construction approved (Oct. ‘11) Completion of Mg ingot plant (Aug. ’12) - Annual Production Capacity : 10,000 Tons Environmental issue (Jun. ‘13) Shut down of Mg smelting operation (May. ‘14) - Partial operation of Mg refining operation (10tons/M) Completion for the section 1 of the site approved (Dec. ‘14) Location - Jusuri Okgye myeon, Gangneung city, Gangwon province - 230km from Seoul, 316km from Busan 485,000㎡, 48.5ha, 5,200,000ft2 , 119 Acres - Section 1: 245,000㎡ (Mg ingot plant to be removed) - Section 2: 220,000㎡ (Open area) - Section 3: 20,000㎡ (Service area) - Total area equal to 68 Soccer fields Accessibility : 2km from expressway 65 - 0.9km from train station, 1.5km from port Okgye port : 11 Mton/y loading capacity 4,500kw power, Additional capacity planned

Location KTX (Seoul-Gangneung) express train to be completed in 2017 E Seoul~Gangneung : 347 minutes→72 minutes Expressway (Wonju-Gyeonggi Gwangju) expanded in Nov. 2016 Seoul~Wonju : 77 minutes→54 minutes Expressway (Yangyang-Hongcheon) to be expanded in Jun. 2017 Seoul~Yangyang : 180 minutes→90 minutes

Layout Section 1 Section 2 Section 3

Advantages Industrial site is available to immediate access : Time & Cost saving - For evaluation of environmental effect - For acquiring all the necessary licenses from central & local governments - For negotiation with stake holders, especially local inhabitants - For making-up industrial site Infrastructures - Close to expressway, port and train station - Power line exists, additional capacity planned Support from local government - Max. 8,000M KRW for the capital investment above 50,000M KRW or creating 200 jobs - Max. 10,000M KRW for the capital investment above 70,000M KRW or creating 300 jobs Easy & efficient settle down by working with posco - Competitive land valuation negotiable - Benefits from posco’s existing business infra structures - Possible to step by step approach for using land

Business Model posco to participate in JV of a new company as a minor share holder. - Possible to invest additional capital depending on business. - Any conditions negotiable. Open for any category of business - Logistics, Materials, Manufacturing, Assembly, Energy, Water, etc. - Automotive parts, Electronics, Display - Deep sea water, Chemicals, Medical, Bio, etc. Open for any category of investor - Foreign investors, domestic investors. - Large / medium / small-sized enterprise. ※ Contact: Wonil Kim (wok2@posco.com)