Daily Brief South Korea: POSCO Holdings, Shinhan Card Co Ltd and more

• POSCO has signed a strategic partnership with Cleveland-Cliffs. POSCO is likely to invest more than 1 trillion won to purchase at least a 10% stake in Cleveland-Cliffs by early 2026.
• Local media have mentioned that POSCO is likely to invest more than 1 trillion won (US700 million) to purchase at least a 10% stake in Cleveland-Cliffs by 2026.
• Overall, we believe that a potential US$700 million investment in Cleveland-Cliffs for about 10% stake in the company could have a positive impact on POSCO.

• Shinhan Card is the largest credit card issuer in South Korea, commanding a significant market share in a mature but evolving payments landscape. The company is navigating a challenging environment of regulatory pressure on merchant fees and rising competition from fintech players.
• A key strategic focus is the digital transformation, leveraging its vast customer data to offer personalized services and expand into new platform-based businesses. This includes the growth of its ‘Shinhan SOL pay’ platform and data-driven marketing initiatives.
• Profitability has been under pressure due to increased funding costs and higher loan loss provisions amidst macroeconomic headwinds. However, the company maintains a stable capital and liquidity position, benefiting from the strong backing of its parent, Shinhan Financial Group.

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