SEOUL: Giant South Korea steelmaker POSCO has begun reviewing how it might end a joint venture with a firm controlled by the military in Myanmar in the wake of the coup there in February, two people with first-hand knowledge of the matter told Reuters.
But the people with knowledge of the matter say POSCO is wary of an abrupt steel exit because it could potentially jeopardise hundreds of millions of dollars earned from more lucrative gas projects operated jointly with another Myanmar state firm by an affiliate, Posco International. About two thirds of the operating profit at Posco International came from latter last year - around 300 billion won - in partnership with local state energy firm Myanmar Oil and Gas Enterprise .
While Posco International controls the gas projects via its 51per cent stake, India's Oil and Natural Gas Corp and GAIL own 17per cent and 8.5per cent stakes respectively.International pressure against the military and companies that have ties with it has steadily risen since February, with death toll close to 550 in the two months since the generals overthrew Aung San Suu Kyi's elected government.
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