POSCO was a South Korean company that manufactured and sold products such as hot-rolled and cold-rolled steel, stainless steel plates, wire rods, and silicon steel sheets. Determined to find a greener and more cost-efficient alternative technology for steelmaking, POSCO decided to develop a new technology. Called FINEX, this technology significantly lowered operating costs, cut emissions, and, by eliminating the need for sinter and coking plants, significantly reduced overall construction costs. Once FINEX proved to be a successful technology, POSCO faced the question of whether and how to share FINEX with its competitors. Company leadership knew that POSCO had only succeeded—indeed, had only come into existence—with the help of other steelmaking companies that had shared their technology, knowledge, and expertise. This would be the first time in POSCO's existence that it would share such a strategic technology with others. The question was, should it share? Excerpt UVA-E-0395 May 7, 2014 POSCO, FINEX, AND TECHNOLOGY SHARING POSCO, originally called Pohang Iron and Steel Company, was a South Korean steelmaking company founded in 1968 by the government in an effort to create an industrial infrastructure. The company, which manufactured and sold products such as hot-rolled and cold-rolled steel, stainless steel plates, wire rods, and silicon steel sheets, had been privatized in the 1990s. By 2012, POSCO was the third-largest steelmaker in the world by volume and the largest based on market capitalization. It was also recognized by Fortune magazine as the most admired metals company in the world. In 2012, POSCO produced 35.5 million tons of steel, had $ 59.58billion in revenues, and earned a net income of $ 2.23 billion. See Exhibit 1 for a financial snapshot of the company. Headquartered in Pohang, South Korea, POSCO had approximately 55,000 employees (including those employed by subsidiaries) and, in addition to Korea, operated in North America, India, Japan, China, and elsewhere in the Asia-Pacific region. Roughly 58% of its steel output was used in Korea for, among other things, shipbuilding and automotive manufacturing—the rest was exported to more than 60 countries. Steelmaking and Its Effects on the Environment In the early 1990s, POSCO had the traditional problem that steelmaking companies faced: the business was tremendously destructive to the environment. Practically every step of the process produced air emissions composed of volatile organic compounds such as carbon monoxide and sulfur and nitrogen oxides. Wastewater generated in the steelmaking process contained high levels of contaminants. While not as toxic as the wastewater, solid waste was generated in enormous quantities. Finally, the steelmaking process consumed tremendous amounts of energy, thus contributing to greenhouse gas emissions. . . .