South Korean steel maker POSCO Group has annoinced plans to split off its steel operations and become a holding company, Posco Holdings. The reorganisation is aimed at finding new growth businesses and enhancing shareholder value. Under the plan, the group’s steel making arm will be physically split off and will be placed under the planned holding company. The envisioned holding company is expected to hold a 100% stake in the steelmaking unit and will be given advantage of securing additional investment for new businesses. POSCO will hold a shareholder meeting on January 28 and the split is expected to take place on March 1.But the split-off scheme faces a major hurdle, as it must get approval from major shareholders such as the National Pension Service. The pension operator is the largest-single shareholder of Posco shares with 11.75%. Previously, the NPS has expressed objections to the spinoff plans of LG Chem and SK Innovation.Posco Group has been persuading individual shareholders to approve its split-off scheme to explore new businesses and change its typecast image as a steel maker amid growing pressure to curb carbon emissions. The steel maker plans to expand producing 7 million tonnes of hydrogen by 2050 by the current goal of 5 million tonne. Posco is seeking to transform its governance structure to better respond to ESG trends, expand investment in new business such as secondary battery materials and hydrogen and enhance its value in the stock market. Posco group’s steelmaking arm Posco has been controlling subsidiaries with its ownership of majority stakes. It has 61.3% stake in Posco Chemical, 52.8% in Posco Engineering and Construction and 62.9% in Posco International.