CHOSUN REFRACTORIES and POSCO’s KRW 55.6 Billion Deal: What Happened?

On September 24, 2025, CHOSUN REFRACTORIES signed a KRW 55.6 billion supply contract with POSCO for refractory materials. This significant contract represents approximately 11.11% of CHOSUN REFRACTORIES’ annual revenue and is valid for one year, from October 1, 2025, to September 30, 2026.

The Significance of the Contract: Why Does It Matter?

This contract signifies more than just a revenue increase for CHOSUN REFRACTORIES. It secures stable sales and strengthens the relationship with a key client, POSCO, paving the way for long-term growth. It also holds the potential for improved profitability through economies of scale.

Financial Status and Market Environment Analysis: What’s Next?

  • Financial Status: Despite revenue growth, CHOSUN REFRACTORIES experienced slightly weakened profitability in the first half of 2025. However, this contract is expected to lay the groundwork for profit improvement.
  • Market Environment: Uncertainties such as a global economic slowdown, exchange rate fluctuations, and rising raw material prices persist. This contract, however, should help mitigate the impact of these external factors.

Action Plan for Investors: What Should You Do?

  • Monitor Profitability: Continuously monitor whether actual profitability improves following the contract.
  • Risk Management: Pay close attention to the company’s strategies for addressing external factors like raw material prices and exchange rate fluctuations.
  • Long-Term Perspective: Don’t be swayed by short-term stock price fluctuations; consider the company’s long-term growth potential.