EX-99.1

(As of September 30, 2009)

Number of shares

Remarks

1. Number of outstanding shares

2. Shares without voting rights

10,616,919: Treasury Stock
30,000: Shares in mutual ownership

3. Shares with voting rights

Exhibit 99.1

QUARTERLY REPORT

(From January 1, 2009 to September 30, 2009)

THIS IS AN ENGLISH TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A NON-CONSOLIDATED BASIS IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN KOREA, OR KOREAN GAAP, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

I. OVERVIEW

1. Scope of Business

A. POSCO (the “Company”)


Business		Note
a.	Production and sale of crude steel and stainless steel (STS) products
b.	Port/harbor loading/unloading, warehousing, packaging	No engagement in this business during the third quarter of 2009
c.	Management of professional athletic organizations
d.	Power generation, renewable energy projects, liquefied natural gas logistics and exploration, and other incidental businesses
e.	Real property lease business
f.	Public energy services and distribution system
g.	Marine transportation of mineral resources; domestic and overseas processing and sales of mineral resources
h.	Educational services and other incidental services
i.	Production and sale of non-ferrous metals
j.	Other businesses incidental or related, directly or indirectly, to the foregoing businesses.

B. POSCO Business Group

	(1)		Name of Business Group: POSCO

	(2)		Companies Belonging to Large Business Groups

POSCO, POSCO Coated and Color Steel Co., Ltd., POSDATA Co., Ltd., POSCO Refractories and Environment Co., Ltd, Samjung Packing and Aluminum Co., Ltd., Seung Kwang Co., Ltd., POS-AC Co., Ltd., POSCO E&C Co., Ltd., POSCO Research Institute, POSCON Co., Ltd., Posteel Co., Ltd., POSCO Specialty Steel Co., Ltd., POSCO Machinery Co., Ltd., POSCO Machinery and Engineering Co., Ltd., POSCO Terminal Co., Ltd., POSTECH Venture Capital Corp., Metapolis Co., Ltd., Posmate Co., Ltd., POSCO Power Corp., SNNC Co., Ltd., PHP Co., Ltd., POSBRO Inc., Suwon Green Environment, POSCORE Co., Ltd., POSWITH Co., Ltd., Uitrans Co. Ltd., PNR Co., Ltd., Pohang Fuel Cell Power Co., Ltd., RISTec-Biz Co., Ltd., Cheongna IBT Co., Ltd., Mega-Asset Co., Ltd., Daewoo Engineering Company, Basys Industry Co., Ltd., Pohang Steel Fabrication Center, Universal Studios Resort Asset Management Corporation, Universal Studios Resort Development Corporation, eNtoB Corporation, Medical Materials Co., Ltd., POSCO AST Co., Ltd., Daimyung Technology Metal Service

•

Changes in companies belonging to large business groups before September 30, 2009

	•		Addition of subsidiary: Medical Materials Co. Ltd. (July 1, 2009)

	•		Addition of subsidiary: POSCO AST Co., Ltd. (September 1, 2009)

	•		Addition of subsidiary: Daimyung Technology Metal Service (September 1, 2009)

•

Changes in companies belonging to large business groups after September 30, 2009

	•		Addition of subsidiary: POSCO E&E (October 1, 2009)

	•		Addition of subsidiary: POMIC (October 1, 2009)

	•		Addition of subsidiary: POS Himetal (October 1, 2009)

(3)

Related laws and regulations

•

The Korea Fair Trade Commission has designated POSCO as a Business Group subject to limitations on Cross-Shareholding and Debt Guarantee for Affiliates pursuant to the Monopoly Regulation and Fair Trade Act.

Details

	a.		Prohibition on Cross Shareholdings (Article 9-1 of the Monopoly Regulation and Fair Trade Act)

	b.		Prohibitions on Debt Guarantees for Affiliated Corporations (Article 10-2 of the Monopoly Regulation and Fair Trade Act)

	c.		Prohibitions on Shareholding of Venture Capitals for Subsidiaries (Article 9-3 of the Monopoly Regulation and Fair Trade Act)

	d.		Limitation of Voting Rights of Finance or Insurance Companies (Article 11 of the Monopoly Regulation and Fair Trade Act)

	e.		Resolution of Board of Directors and Publication on Large-Scale Intra-Group Transaction (Article 11-2 of the Monopoly Regulation and Fair Trade Act)

	f.		Disclosure of Important Facts such as Unlisted Shares (Article 11-3 of the Monopoly Regulation and Fair Trade Act)

	g.		Report on Status of Shareholding (Article 13 of the Monopoly Regulation and Fair Trade Act)

2. Business Organization

A. Highlights of the Company’s Business Organization

Historical highlights and changes since establishment

	(a)		Date of establishment: April 1, 1968

	(b)		Location of the headquarters: 1, Koedong-dong, Pohang-si, Kyongsang buk-do, Korea

(c)

Steel Works and Offices

	•		Pohang Works: 5 Dongchon-dong, Nam-ku, Pohang-si, Kyonsangbuk-do, Korea

	•		Gwangyang Works: 700 Kumho-dong, Gwangyang-si, Chollanam-do, Korea

	•		Principal Executive Office: POSCO Center, 892 Daichi-4 dong, Kangnam-ku, Seoul, Korea

	•		Overseas Offices: The Company operates eight offices overseas (including Indonesia (Jakarta), United Arab Emirates (Dubai), Czech Republic (Prague), European Union, Brazil (Rio de Janeiro), Mexico (Cuauhtemoc), Russia (Moscow) and Vietnam (Hanoi)) for the purpose of supporting international business.

(d)

Composition of Board of Directors (as of February 27, 2009)

•

Standing Directors

	•		Lee, Ku-Taek resigned on February 27, 2009

	•		Cho, Soung-Sik’s term of office expired on February 27, 2009

	•		New members (including re-elections): Chung, Joon-Yang, Lee, Dong-Hee, Huh, Nam-Suk, Chung, Keel-Sou

•

Outside Directors

	•		Jun, Kwang-Woo resigned on March 6, 2008

	•		Park, Won-Soon resigned on February 27, 2009

	•		Terms of office for Suh, Yoon-Suk, Park, Young-Ju, Huh, Sung-Kwan expired on February 27, 2009

	•		New members: Yoo, Jang-Hee, Han, Joon-Ho, Lee, Young-Sun, Kim, Byung-Ki, Lee, Chang-Hee

•

Representative Directors

	•		Prior to February 27, 2009: Lee, Ku-Taek, Yoon, Seok-Man

	•		As of February 27, 2009: Chung, Joon-Yang, Lee, Dong-Hee, Choi, Jong-Tae

(e)

Largest Shareholder

	•		National Pension Corporation is the largest shareholder

	•		Date of Disclosure: January 30, 2007

			(for further reference please refer to the public disclosure regarding the change of the largest shareholder on Jan 30 2007, Jul 27 2007, Jan 29 2008, Jul 25 2008, Jan 21 2009, Mar 2 2009, Jul 22 2009, and Oct 9 2009)

B. Major Changes in Production Facilities

•

There were no material changes before September 30, 2009.

3. Equity Capital

A. New Issuance of Registered Form Common Stock

No new issuance of registered form Common Stock in the last five years.

B. Convertible Bonds

[None]

C. Bonds with Warrant

[None]

4. Other information regarding Shares

A. Total Number of Shares


(As of September 30, 2009)
Authorized Shares		Outstanding Shares
200,000,000		87,186,835

Par value: Won 5,000 per share

B. Treasury Stock Holding and Cancellation

(1)

Treasury Stock Holding and Cancellation


(As of September 30, 2009)
Method of purchase	Type	Beginning		Increased		Decreased		Cancelled		Balance
Direct	Registered Common		8,255,034		—		—		—		8,255,034
Special Money Trust			2,361,885		—		—		—		2,361,885

Total			10,616,919		—		—		—		10,616,919


•		Beginning balance: as of Dec 31, 2008

•

Major changes after September 30, 2009

•

Disposal of Treasury Shares regarding Equtiy Swap agreement with Kookmin Bank.

:462,962 shares (Oct 19, 2009)

(2)

Treasury Stock purchased under the Special Money Trust Contract

(Unit: Won)

Items

Beginning

Increased

Decreased

Balance

Special Money Trust

550,000,000,000

—

550,000,000,000

•

Renewal of treasury stock special money trust contract

	•		Hana Bank, Shinhan Bank, Daegu Bank, National Agricultural Cooperative Federation (NACF)

	•		Renewed contract period from May 12, 2009 until May 11, 2010

	•		Renewed contract amount: KRW 822.2 billion (Increase in contract amount as a result of gain

	•		on sale of treasury stock in the special money trust and interest income)

C. Voting Rights

•

Major changes after September 30, 2009

•

Disposal of Treasury Shares regarding Equtiy Swap agreement with Kookmin Bank.

:462,962 shares (Oct 19, 2009)

II. BUSINESS

1. Current Situation of POSCO

(1) Domestic Market Share


(Unit: Million Tons, %)
	2009
	(’09.1.1 ~ ’09.9.30)				2008				2007
Category	Production		Market share		Production		Market share		Production		Market share
Crude steel production		34.8		100		53.3		100		51.6		100
POSCO		21.1		61		33.1		62		31.1		60
Others		13.7		39		20.2		38		20.5		40


•		Source: Korea Iron and Steel Association

(2) Characteristics of the Steel Market

	•		The steel industry supplies materials to major industries, including the automobile, shipbuilding, electronics appliance industries and construction industries.

	•		Domestic sales represent 65% and overseas sales represent 35% of our total sales volume (major overseas markets include China, Japan and southeast Asian countries).

	•		The company also maintains a made-to-order supply system and 70% of domestic sales are direct business based on actual demand to secure stable operation.

(3) Current Situation and Prospect of New Businesses

•

Establishment of Steelworks in India

	•		Established POSCO-India Private Limited (‘05.8)

	•		POSCO entered into a Memorandum of Understanding with the government of Orissa on June 22, 2005 to construct an integrated steelworks with an annual production capacity of 12million tons and to develop iron ore captive mines.

[Development of iron ore captive mines]

	•		Filed three Mining Prospecting License applications with the state government of Orissa (‘05.9)

	•		State government of Orissa recommended approval of the Khandadhar Mining Prospecting License to the central government of India (‘06.12)

	•		Central government of India denied the Khandadhar Mining Prospecting License and remanded to the state government of Orissa (‘07.7)

	•		State government of Orissa resubmitted recommendation for approval of Khandadhar Mining Prospecting License to the central government of India (‘09.1)

	•		Government of India is currently reviewing the recommendation by the state government of Orissa for the grant of the Khandadhar Mining Prospecting License (‘09.6)

•

Pending approval from the Minister of Mines of the Central Government of India (‘09.10)

[Establishment of Steelworks]

	•		Obtained central government’s approval of environment impact assessment for port construction (`07.5)

	•		Obtained central government’s approval of environment impact assessment for steel mill construction (`07.7)

	•		Obtained stage one clearance for 2,959 acres of forest land from the Indian Supreme Court (‘08.8)

	•		Acquired approximately 509 acres of land for the construction of a steel mill and a port (‘09.4)

	•		Payment of US$23 million to obtain approval from the Central Government for the deforestation of the steel mill construction site (‘09.10)

•

Installation of the Cold-Rolling Mill in Vietnam

•

Purpose of Investment: to establish a cold-rolling mill with a production capacity of 1.2 million tons per year in Vietnam (‘06.11)

[Construction Period: ‘07.8~’09.10]

	•		Construction started (‘07.8)

	•		Construction of a port started (‘07.10)

	•		Investment in 15% equity stake by NSC (‘09.4 )

	•		Completion of Construction (‘09.10)

•

Installation of the Continuous Galvanized Line (CGL) in Mexico

•

Purpose of Investment: to construct a CGL with an annual production capacity of 400 thousand tons per year for the supply of automotive grade steel (‘06.12)

[Construction Period: ‘07.9~ ‘09.8]

	•		Construction started (‘07. 9)

	•		Construction completed (‘09. 8)

•

Acquisition of Asia Stainless Corporation (ASC)

	•		Entered into a sale and purchase agreement with ASC on July 27, 2009

	•		POSCO purchased and acquired 90 percent of all issued and outstanding shares of ASC to strengthen its competitiveness in the global stainless steel industry.

	•		increased the capital of the ASC by U$10m (POSCO 90%) (‘09. 10)

	•		Changed the company name to POSCO-VST (‘09. 10)

	•		Expected to complete the capacity expansion (‘10)

(The current capacity 35,000 tons per year will increase to 85,000 tons per year after the expansion)

•

Acquisition of Taihan ST Co., Ltd.

	•		Entered into a sale and purchase agreement with Taihan ST Co., Ltd. on July 17, 2009

	•		POSCO has acquired a total of 85 percent of all issued and outstanding shares of Taihan ST Co., Ltd. that is ranked 4^th among the domestic stainless cold-rolling mills in order to strengthen its competitiveness in the global stainless steel industry.

	•		Extraordinary shareholders meeting (‘09. 7.29):

Amended the Company’s Articles of Incorporation to reflect a change in the Company name and appointment Company directors and executives.

2. Key Products and Raw Materials

A. Current Situation of Key Products

(Unit : Hundred Million Won)

Business

Source of

area

sales

Items

Specific utility

Key brand

Sales (portion)

Steel production

Products

Hot rolled products

Steel pipes, shipbuilding, etc.

93,551(48%)

Cold rolled products

Automobiles, electronic appliances, etc.

76,204(39%)

STS

Silverware, steel pipes, etc.

POSCO

24,167(12%)

Others

Slag

Raw material for cement, etc.

2,942(1%)

sales discount

-206(0%)

Total

196,658(100%)

B. Price Trends of Key Products


(Unit: Thousand Won/Ton )
	2009
Items	(’09.1.1 ~ ’09.9.30)		2008		2007
Hot-rolled Product (HR)		814		840		575
Cold-rolled Product (CR)		948		927		664

(1) Criteria for Calculation

•		Product items and objects for calculation: Unit prices of standard hot-rolled product and cold-rolled product.

•		Unit and method for calculation: The average price of each product based on its total sales during the given period, including freight.

(2) Factors of Price Fluctuations

•

Export prices of steel products decreased sharply in the first half of 2009 due to waning demand in the global steel market; however, prices increased in the second half of 2009 as a result of recovery of the global economy.

C. Current Situation of Major Raw Materials

(Unit: Hundred Million Won)

Purchase

Business

Type of

amount

area

purchase

Item

Specific use

(portion)

Remarks

Steel production

Raw materials

Iron ore

Iron ore for blast

33,857

BHP Billiton of Australia,

furnaces

(34.3

Rio Tinto,

VALE of Brazil

Coal

Coking coal: Heat

34,093

BMA of Australia,

source for blast

(34.5

Rio Tinto,

furnaces,

Teck of Canada

Smokeless coal:

Sintering fuel

STS materials

Key materials for

14,208

Nickel, Fe-Cr,

STS production

(14.4

STS scrap iron, etc.

Other minerals

Sub-materials for

Iron material, Alloy iron,

iron-making,

16,561

non-ferrous metal,

steelmaking

(16.8

limestone, etc.

Total

98,719

D. Price Trends of Key Materials


(Unit: Thousand Won/Ton)
	2009
Category	('09.1.1 ~ '09.9.30)		2008		2007
Iron ore		77		101		54
Coal		171		327		103
Scrap iron		386		509		331
Nickel		18,109		22,994		38,943

• Key Factors in Price Fluctuations

A. Iron ore

2007

2008

1Q 2009

2Q 2009

3Q 2009

Trend of international benchmark price (FOB):

U$48.3/ton

U$86.8/ton

U$92.6/ton

U$58.2/ton

•

Iron ore (FOB): based on Australian Fine contractual price (Fe 60%)

B. Coal

2007

2008

1Q 2009

2Q 2009

3Q 2009

Trend of international benchmark price (FOB):

U$98/ton

U$300/ton

U$129/ton

•

Coal (FOB): based on Australian Premium Hard Coking Coal price

C. Scrap iron

2007

2008

1Q 2009

2Q 2009

3Q 2009

Trend of purchase price (CFR):

U$330/ton

U$462/ton

U$247/ton

U$291/ton

U$317/ton

•

Scrap iron (CFR)

D. Nickel

2007

2008

1Q 2009

2Q 2009

3Q 2009

Trend of

U$16.89/lb

U$9.58/lb

U$4.75/lb

U$5.86/lb

U$8.03/lb

LME Cash price:

U$37,230/ton

U$21,111/ton

U$10,471/ton

U$12,920/ton

U$17,700/ton

•

LME: London Metal Exchange

3. Production and Facilities

A. Production Capacity


(Unit: Thousand Ton)
	2009
Items	('09.1.1 ~ '09.9.30)		2008		2007
Pohang Works		11,250		15,000		14,300
Gwangyang Works		12,950		18,000		16,700

Total		24,200		33,000		31,000

•

Decrease in production capacity as a result of renovation and improvement of production facilities including High Speed Casting and Endless Rolling Mill (‘08.10.1~’09.4.20)

B. Production and Capacity Utilization Rate

(1) Production


(Unit: Thousand Ton)
		2009
Items		('09.1.1 ~ '09.9.30)		2008		2007
Crude Steel	Pohang		10,616		14,936		13,659
	Gwangyang		10,541		18,200		17,405

Subtotal			21,157		33,136		31,064

Hot-Rolled Products	Pohang		2,252		3,331		3,101
	Gwangyang		3,555		5,236		5,054
Cold Rolled Products	Pohang		1,167		1,739		1,332
	Gwangyang		2,780		4,487		4,375
Coated Steel	Pohang		270		304		318
	Gwangyang		1,884		4,022		3,641
PO	Gwangyang		1,112		2,406		2,178
Electrical Steel	Pohang		603		940		910
Plate	Pohang		3,343		4,738		3,816
Wire Rod	Pohang		1,441		2,027		2,006
STS	Pohang		941		1,347		1,598
Others	Pohang		278		521		442
	Gwangyang		589		739		956

Total Products			20,215		31,837		29,727


Pohang			10,295		14,947		13,523
Gwangyang			9,920		16,890		16,204

(2) Capacity Utilization Rate in terms of crude steel production (Jan1, 2009 ~ Sep30, 2009)


(Unit: Thousand Ton)
Items	Capacity		Production		Utilization Rate
Pohang Works		11,250		10,616		94.4	%
Gwangyang Works		12,950		10,541		81.4	%

Total		24,200		21,157		87.4	%

•

Utilization Rate = Production/ Production Capacity.

C. Production Facilities

(1) Book Value of Fixed Assets


(Unit: Million Won)
		Beginning Book
	Items	Balance		Increased		Decreased		Depreciation		Ending Book Balance
Pohang	Land		394,572		40,476		592		—		434,456
	Building		1,173,523		79,234		1,533		65,150		1,186,074
	Structures		806,403		37,361		2,036		48,329		793,399
	Machinery and Equipment		4,559,824		819,344		3,181		726,532		4,649,455
	Vehicles		15,773		2,174		15		4,849		13,083
	Tools and Fixtures		8,430		4,104		68		3,856		8,610
	Furniture and Others		38,166		5,134		14		9,154		34,132
	Financial Lease Assets		10,192		—		—		478		9,714

Gwangyang	Land		513,734		325		—		—		514,059
	Building		805,086		120,910		127		65,485		860,384
	Structures		683,695		40,434		1,025		44,948		678,156
	Machinery and Equipment		2,786,515		1,485,275		3,520		509,874		3,758,396
	Vehicles		4,529		800		—		1,484		3,845
	Tools and Fixtures		8,887		3,359		3		3,623		8,620
	Furniture andOthers		15,859		3,208		2		4,778		14,287

(2) Major Capital Expenditures

(a) Investments under construction


(Unit : Hundred Million Won)
					Invested
					Amount			Amount
					(2009,			to be
Items	Date	Project	Total Investment		'09.1.1 ~'09.9.30)			invested
Expansion	'08.09~'12.9	G) Installation of 5^th sintering plant and 5^th coke plant		19,868		3,358	(527)		16,510
	'08.08~'10.7	Capacity expansion of plate production		17,910		8,857	(3,252)		9,053
	'08.8~'10.9	P) Construction of new steelmaking plant		13,967		7,760	(1,325)		6,207
	'08.10~'16.9	P, G) Capacity expansion of treatment of raw materials		8,091		1,643	(221)		6,448
	'07.04~'09.12	P) Installation of STS continuous tandem rolling mill		3,192		3,127	(59)		65


Renovation/Replacement	'08.8~'10.10	P) Capacity expansion of 4^th sintering plant; installation of grained coal re-rolling drum		1,600		394	(11)		1,206

Others				23,047		13,081	(3,397)		9,966


Total				87,675		38,220	(8,792)		49,455

•

Equity Investment not included

(b) Planned investments


(Unit: Hundred Million Won)
		Planned investments
Location	Project	2009		2010		2011
Pohang	Expansion, Renovation and Replacement of Existing
	Facilities		22,305		19,612		17,871
	Sub-total		22,305		19,612		17,871
Gwangyang	Expansion, Renovation and Replacement of Existing
	Facilities		34,598		17,739		19,367
	Sub-total		34,598		17,739		19,367

	Total		56,903		37,351		37,238

•

Equity Investment not included

4. Sales

Steel Product Sales


(Unit: Hundred Million Won)
		2009		2008		2008
Items		(’09.1.1 ~ ’09.9.30)		(’08.1.1 ~’08.9.30)		(’08.1.1 ~’08.12.31)
Hot-Rolled Products	Domestic		71,973		79,084		110,436
	Export		21,578		16,953		25,046
	Total		93,551		96,037		135,482
Cold-Rolled Products	Domestic		39,658		50,687		69,473
	Export		36,546		41,369		57,763
	Total		76,204		92,056		127,236
Stainless Steel	Domestic		13,651		20,554		24,682
	Export		10,516		11,921		14,922

	Total		24,167		32,475		39,604

Others	Domestic		2,902		2,620		3,809
	Export		40		499		859

	Total		2,942		3,119		4,668

Subtotal	Domestic		128,184		152,945		208,400
	Export		68,680		70,742		98,590

	Total		196,864		223,687		306,990

Discount			-206		-316		-566

Total			196,658		223,371		306,424

5. Derivatives

	•		Gain on derivatives transaction : KRW 33,458 million

			Loss on derivatives transaction: KRW 19,281 million

			Net gain on derivatives transaction: KRW 14,177 million

	•		Derivative valuation gain of Exchangeable Notes exchangeble into ADRs of SK Telecom issued on August 19, 2008: KRW 6,337 million

6. Significant Contracts


Contract	Date	Remarks
Joint-Venture with Nippon Steel Corporation	’09.1	Made a joint-venture contract whereby NSC will gain a 15 percent stake (US$37.2 million) in POSCO-Vietnam by purchasing its newly issued shares

Production of High-Quality FeMn	’09.7	POSCO and Dongbu Metal Co., Ltd. entered into an agreement to establish a joint-venture firm, for the production of melted high-quality FeMn to be used in the manufacture of high grade Mn steel for automobiles parts and plates. Upon completion of the transaction, POSCO would acquire a 65 percent stake in joint-venture firm.

Acquisition of Taihan ST Co., Ltd.	’09.7	POSCO purchased and acquired 65.1% of all issued and outstanding shares of Taihan ST Co., Ltd. priced at KRW 60 billion to strengthen its competitiveness in the stainless steel market.

Acquisition of Asia Stainless Corporation	’09.7	In order to strengthen its competitiveness in the global stainless steel industry, POSCO purchased and acquired 90 percent of all issued and outstanding shares of Asia Stainless Corporation, a Vietnamese corporation.

Equity Swap with Kookmin Bank	’09.10	POSCO to purchase 4,084,967 shares of KB Financial Group’s stock (1.15 percent of KB Financial Group’s outstanding shares) worth KRW 250.0 billion

		Kookmin Bank to purchase 462,962 shares of POSCO Treasury Stocks (0.53 percent of POSCO’s outstanding shares) worth KRW 250.0 billion

•

Please refer to Form 6-K for additional information

7. Research and Development

A. Research and Development (R&D) Organization


	Organization	Staff
In-house	Technology Development Department		75

	Environment and Energy Department		18

	Technical Research Laboratories		827

Independent	Research Institute of Industrial Science and Technology		414

	POSTECH		1,084

B. R&D Expenses


(Unit: Million Won)
	2009
	(’09.1.1 ~ ’09.9.30)			2008			2007
Raw Materials		80,232			93,016			49,552
Labor cost		32,212			54,242			38,635
Depreciation		27,352			35,879			32,822
Subcontract		122,862			151,553			96,200
Other Expense		73,716			108,037			104,425

Total		336,374			442,727			321,634

(R&D/Sales Ratio)*100		1.71	%		1.44	%		1.45	%

III. Financial Statements

1. Unconsolidated Financial Statements

A. Summary for the Fiscal Years 2005 through 2009


(Unit: million won)
	2009
Item	(’09.1.1 ~ ’09.9.30)		2008		2007		2006		2005
Current Assets		12,193,111		13,693,225		8,767,894		7,870,885		8,399,476
Quick Assets		8,710,083		7,277,624		5,546,615		5,136,181		5,680,632
Inventories		3,483,028		6,415,601		3,221,279		2,734,704		2,718,844
Fixed Assets		25,991,039		23,340,229		21,724,904		18,491,988		15,807,474
Investments Assets		9,877,115		8,632,612		8,165,314		5,658,395		4,501,880
Tangible Assets		15,889,338		14,465,918		13,201,649		12,466,116		10,898,679
Intangible Assets		154,509		170,095		211,975		229,418		277,893
Other Fixed Assets		70,077		71,604		145,966		138,059		129,022
Total Assets		38,184,150		37,033,454		30,492,798		26,362,873		24,206,950
Current Liabilities		2,354,744		4,283,199		2,811,807		1,746,904		3,776,633
Fixed Liabilities		6,401,630		4,966,598		3,177,759		2,824,311		919,860
Total Liabilities		8,756,374		9,249,797		5,989,566		4,571,215		4,696,493
Common Stock		482,403		482,403		482,403		482,403		482,403
Capital Surplus		4,288,006		4,291,355		4,128,839		3,937,056		3,899,549
Retained Earnings		26,667,931		25,460,123		21,768,227		18,743,894		16,173,776
Capital Adjustments		(-)2,502,014		(-)2,502,014		(-)2,715,964		(-)1,670,690		(-)959,205
Accumulated Other Comprehensive Income		491,450		51,790		839,727		298,995		(-)86,066
Total Shareholders’ Equity		29,427,776		27,783,657		24,503,232		21,791,658		19,510,457
Sales		19,665,814		30,642,409		22,206,685		20,043,409		21,695,044
Operating Income		1,561,219		6,540,059		4,308,275		3,892,307		5,911,886
Net Income		1,896,937		4,446,933		3,679,431		3,206,605		3,994,565

2. Items to pay attention for use of Financial Statements

A. Principles

(1) The company prepared its Financial Statements in accordance with Generally Accepted Accounting Principle and Certified Public Accountant’s audit opinions on Financial Statements.

(2) The Company’s plan and status for applying K-IFRS:

The Company plans to prepare its financial statements under K-IFRS from 2011. To manage all the things accompanied with adoption of K-IFRS, the Company has organized a separate task force,

and it has analyzed the impact of the adoption of KIFRS and has been on the process of modification of system. Also, the Company has trained persons in charge of adoption of K-IFRS in POSCO and its subsidiaries and it is reporting the results of its operation to the audit committee and management group periodically.

3. Unconsolidated Financial Statements

A. Balance Sheet

Refer to the attached the review report as of September 30, 2009

B. Income Statements

Refer to the attached the review report as of September 30, 2009

C. The note in the Financial Statement

Refer to the auditor’s note in financial statement

4. Consolidated Financial Statements

A. Summary for the Fiscal Years 2004 through 2008


(Unit: million won)
	2008		2007		2006		2005		2004
Current Assets		22,197,633		14,393,533		12,236,953		11,640,335		10,487,816
Quick Assets		13,535,913		9,491,517		8,218,748		7,847,742		7,422,294
Inventories		8,661,720		4,902,016		4,018,205		3,792,593		3,065,522
Fixes Assets		24,763,649		21,881,230		18,912,120		15,866,975		13,641,144
Investments Assets		5,278,165		5,239,026		3,239,689		2,877,288		2,428,279
Tangible Assets		18,069,099		15,581,765		14,643,120		12,271,710		10,440,291
Intangible Assets		723,767		570,779		557,082		453,709		496,315
Other Fixed Assets		692,618		489,660		472,229		264,268		276,259
Total Assets		46,961,282		36,274,763		31,149,073		27,507,310		24,128,960
Current Liabilities		11,009,393		6,624,615		5,082,295		5,881,563		4,995,018
Fixed Liabilities		7,607,684		4,532,408		3,665,036		1,752,070		2,747,886
Total Liabilities		18,617,077		11,157,023		8,747,331		7,633,633		7,742,904
Common Stock		482,403		482,403		482,403		482,403		482,403
Capital Surplus		4,319,083		4,176,592		4,035,273		3,991,409		3,895,378
Retained Earnings		25,393,246		21,767,302		18,863,333		16,168,892		12,851,118
Capital Adjustments		(-)2,509,081		(-)2,727,147		(-)1,678,229		(-)965,433		(-)703,328
Accumulated Other Comprehensive Income		(-)21,985		784,933		209,754		(-)188,264		(-)447,406
Minority Interest		680,539		633,657		489,208		384,670		307,891
Total Shareholders’ Equity		28,344,205		25,117,740		22,401,742		19,873,677		16,386,056
Total Sales		41,742,636		31,607,741		25,842,326		26,301,788		23,973,053
Operating Income		7,173,929		4,919,862		4,389,147		6,083,276		5,319,420
Net Income from Continuing Operations		4,350,103		3,677,964		3,353,082		4,006,993		3,841,264
Net Income		4,350,103		3,677,964		3,353,082		4,006,993		3,841,264
Consolidated Net Profit		4,378,751		3,558,660		3,314,181		4,022,492		3,814,225
Number of Consolidated Companies		74		64		53		47		38

IV. CORPORATE GOVERNANCE AND COMPANY AFFILIATES

1. Overview of Corporate Governance

A. Board of Directors

(1) Board of Directors

Our board of directors has the ultimate responsibility for the management of our business affairs. Under our articles of incorporation, our board is to consist of six directors who also act as our executive officers (“Standing Directors”) and nine directors who are to be outside directors(“Outside Directors”). Our shareholders elect both Standing Directors and Outside Directors at a general meeting of shareholders. Candidates for Standing Director are recommended to shareholders by the board of directors after the board reviews such candidates’ qualifications and candidates for Outside Directors are recommended to the shareholders by a separate board committee consisting of three Outside Directors and one Standing Director (the “Director Candidate Recommendation Committee”) after the committee reviews such candidates’ qualifications. Any shareholder holding an aggregate of 0.5% or more of our outstanding shares with voting rights for at least six months may suggest candidates for Outside Directors to the Director Candidate Recommendation Committee.

Our board of directors maintains the following six special committees:

	•		Director Candidate Recommendation Committee;

	•		Evaluation and Compensation Committee;

	•		Finance and Operation Committee;

	•		Executive Management Committee;

	•		Audit Committee; and

	•		Insider Trading Committee.

Composition of special committees under the Board of Directors and their functions


Category	Composition	Directors	Major functions
Finance and Operation Committee	3 Outside Directors 2 Standing Directors	Yoo, Jang-Hee Ahn, Charles Kim, Byung Ki Lee, Dong-Hee Hur, Nam-Suk	• Oversees decisions with respect to finance and operational matters, including making assessments with respect to potential capital investments evaluating prospective capital- raising activities • Advance deliberation on the revision and abolition of regulations regarding the operation of the Board of Directors • Deliberation and resolution on financial matters, and on donations between KRW 100 million and 1 billion

Audit Committee	4 Outside Directors	Park, Sang-Yong Jones, Jeffrey D. Sun, Wook Lee, Chang Hee	• Audit of corporate accounting and business operations • Creation of audit report on closing accounts, and reporting to the shareholders meeting

Insider Trading Committee	4 Outside Directors	Park, Sang-Yong Jones, Jeffrey D. Sun, Wook Lee, Chang Hee	• Preliminary deliberation of internal transactions in accordance with the Monopoly Regulation and Fair Trade Act (for transaction amounts exceeding KRW 10 billion) • Make resolutions on internal transactions in accordance with the Monopoly Regulation and Fair Trade Act (for transaction amounts greater than KRW 5 billion but less than 10 billion)

Executive Management Committee	6 Standing Directors	Chung, Joon-Yang Yoon, Seok-Man Lee, Dong-Hee Choi, Jong-Tae Hur, Nam-Suk Chung, Keel-Sou	• Advance deliberation on and approval of in- house investment schemes • Deliberation on important subjects regarding hierarchical structure, development and adjustment of human resource • Deliberation on important subjects regarding working policy, and changes to welfare


•		Early Resignation of Outside Director (‘09. 2. 27) : Park, Won-Soon

(2) Establishment and composition of the Director Candidate Recommendation and Evaluation Committee

	•		Changed the name from the Director Candidate Recommendation Committee (March 17, 2000) to the Director Candidate Recommendation and Evaluation Committee (March 15, 2002)

	•		Set up the Director Candidate Recommendation Committee. (March 12, 2004)

•

Composition of the Director Candidate Recommendation Committee

•

Effective Date: February 27, 2009


Ahn, Charles (Chairman)	Outside Director	<Satisfies the regulation requiring that more than 50% of directors should be from outside>

		• Outside Directors (3), Standing Director (1):
		Pursuant to Clause 4 under Article 542-8 in the Commercial Law of Republic of Korea

Park, Sang- Yong (member)	Outside Director

Han, Joon- Ho (member)	Outside Director

Choi, Jong-Tae (member)	Standing Director

(3) List of outside directors


		Relation with
		majority
Name	Experience	shareholder	Remarks
Sun, Wook	• CEO, Nongshim Co., Ltd		Chairman
	• Former President and CEO, Samsung Human	None	Board of
	Resources Development Center		Director
Jones, Jeffrey D.	• Partner, Kim & Chang Law Offices
	• Former Chairman of the American Chamber	None
	of Commerce in Korea


		Relation with
		majority
Name	Experience	shareholder	Remarks
Ahn, Charles	• President and CEO, AhnLab, Inc.
	• Chair Professor of Korea Advanced	None
	Institute of Science and Technology
Park, Sang-Yong	• Professor at Yonsei University
	• Former President of the Korea Securities Research Institute	None
Yoo, Jang-Hee	• President, East Asian Economic Association, Japan	None
	• Former Vice President, External Affairs, Ewha Womans University
Han, Joon-Ho	• CEO and Vice Chairman, Samchully Co., Ltd.
	• Former Chairman and CEO, Korea Electric Power Corporation	None
Lee, Young-Sun	• President of Hallym University.
	• Former Professor of Yonsei University	None
Kim, Byung Ki	• Former President and Research Fellow, Samsung Economic Research Institute
	• Former Deputy Minister, Planning and Management Office, Ministry of Finance and Economy	None
Lee, Chang Hee	• Professor of College of Law, Seoul National University	None
	• Former International Director, Tax Law Association

•

List of key activities of the Board of Directors (Jan 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan. 15	1. Agenda for the 41^st Ordinary General Meeting of Shareholders	All 4 cases
		2. Contribution Plan for In-House Labor Welfare Fund	Approved
		3. Establishment Plan to contribute capital funds to support Small and Medium Enterprises


Session	Date	Agenda	Approval
		4. Operation Plan of CEO Candidate Recommendation Committee

2009-2	Feb. 6	1. Agenda for the 41^st Ordinary General Meeting of Shareholders	All 3 cases
		2. Standing Director Candidate Recommendation for CEO	Approved
		3. Standing Director Candidate Recommendation (Not including CEO)

2009-3	Feb. 27	1. Appointment of Chairman of Board of Directors	All 6 cases
		2. Appointment of Special Committee Members	Approved
		3. Appointment of CEO
		4. Appointment of Representative Directors and Standing Directors
		5. Approval of Designation of Position for Executive Officer
		6. Participation of paid-in capital increase of Shinhan Financial Group Co., Ltd.

2009-4	Apr. 17	1. Plan for High quality ferro Manganese (HM) Project	All 4 cases
		2. Contribution Plan for POSCO Educational Foundation	Approved
		3. Treasury Stock Special Money Trust Contract Renewal
		4. Plans for the improvement of the operation of the Board of Directors

2009-5	Jul.17	1. Acquisition Plan of Stainless Corporation in South-east Asia	All 8 cases
		2. Acquisition Plan of Taihan ST Co., Ltd.	Approved
		3. Establishment of Continuous Galvanizing Line in India
		4. Plan to provide Financial Support to POSCO Power Corp
		5. Waste to Energy Business
		6. 2009 Interim Dividend Payout
		7. Amendment of the Internal Accounting Control System
		8. 2009 Business Plan of POSCO E&C Co., Ltd.

2009-6	Oct 16	1. Development of a Synthetic Natural Gas plant	All 8 cases
		2. Contribution Plan for POSCO TJ Park Foundation	Approved
		3. Lease Contract with Domestic Affiliates
		4. Equity Swap with Kookmin Bank and disposal of Treasury shares
		5. Restructuring Plan for POSCO Group
		6. Construction of new Plate-Heat Treatment Furnace at Gwangyang Works
		7. Change of Long-Term Incentive Compensation Plan for Company Executives
		8. Contribution Plan for Micro Finance Foundation

•

Major activities of outside directors on the Board of Directors (Jan 1, 2009 — November 13, 2009


Session	Date	Number of participating outside directors		Remarks
2009-1	Jan.15		8
2009-2	Feb. 6		8
2009-3	Feb. 27		8
2009-4	Apr. 17		8
2009-5	Jul. 17		9
2009-6	Oct 16		9

* Early Resignation of Outside Director (‘09.2.27): Park, Won-Soon

(4) Composition of committees and their activities

•

Major activities of Director Candidate Recommendation Committee (Jan 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan. 21	Selection of Outside Directors Candidates for Qualifications Assessment	Approved

2009-2	Feb. 5	1. Assessment of Qualifications of Standing Director	—
		2. Assessment of Qualifications and Recommendation of Outside Directors	Approved

2009-3	Feb. 27	1. Appointment of Special Committee Members	—
		2. Appointment of Representative Directors and Approval of Designation of Position for Executive Officers	—
		3. Appointment of Positions for Standing Directors	—

2009-4	Mar. 5	Succession Plan for CEO of POSCO	—

2009-5	Apr. 9	Improvement of the Succession Plan for CEO	—

2009-6	May. 26	Review of Result of Improvement of Succession Plan for CEO	—

•

Early Resignation of Outside director (‘09. 2. 27): Park, Won-Soon

•

Major activities of Evaluation and Compensation Committee (Jan. 1, 2009 — Novemver 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan.15	Evaluation of ‘08 Management Result	—
2009-2	Jul.17	Execution of ‘09 Management Plan	Approved
2009-3	Oct 16	Change of Long-Term Incentive Compensation Plan for Company Executives	—

•

Major activities of Finance and Operation Committee (Jan. 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan. 15	Establishment Plan to contribute capital funds to support Small and Medium Enterprises	—

2009-2	Feb. 27	Participation of Paid-in Capital Increase of Shinhan Financial Group Co., Ltd	—

2009-3	Apr.17	1. Plan for High quality ferro Manganese (HM) Project	—
		2. Plans for the improvement of the operation of the Board of Directors	—
		3. Loaned from Funds for the rational use of Energy	Approved

2009-4	May.26	Disposal Plan of shares of ‘KOREA LINE CORPORATION’	Approved
2009-5	Jul.17	1. Plan for the Additional Funding to POSCO Power Corp.,	—
		2. Slag Powder Project	Approved
		3. Waste to Energy Business	—
		4. Participation of Paid-in Capital Increase of KB Financial Group Inc.	Approved
2009-6	Oct 15	1. Titanium Slab Business Plan	Approved
		2. Equity Swap with Kookmin Bank and disposal of Treasury shares	—
		3. Strategic Mutual Equity Swap	Denied
		4. Development of a Synthetic Natural Gas plant	—
		5. Contribution Plan for Energy Fund	Approved
		6. Contribution Plan for Micro Finance Foundation	—
		7. Job Placement Council for Displaced Indigeneous People	Approved

•

Major activities of Insider Trading Committee (Jan 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan.14	1. Contribution Plan for In-House Labor Welfare Fund	—
		2. Fair Trading Program Operating Result and Plan	—
2009-2	Feb.19	Lease Contract Change of Pohang Calcination Facilities to POSREC	Approved
2009-3	Apr.16	Contribution Plan for POSCO Educational Foundation	—
2009-4	Jul.16	1. Contribution Plan for POSCO TJ Park Foundation	Denied
		2. Fair Trading Program Operating Result and Plan	—
2009-5	Oct 14	1. Contribution Plan for POSCO TJ Park Foundation	—
		2. Lease Contract with Domestic Affiliates	—
		3. Improvement plan for operation of POSCO Educational Foundation	—

•

Major activities of Executive Management Committee (Jan 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Apr.30	1. Installation of process-compressed slag treatment facility at the second Steelmaking Plant in Pohang Works	Approved
		2. Installation of heat exchanger at the second FINEX plant in Pohang Works	Approved
		3. Plan for Capital increase at POSCO-America	Approved

2009-2	May. 26	Suspension of Alteration of Entry in the Register of Shareholders
		for Interim Dividend Payment	Approved

2009-3	Jul.13	1. Acquisition Plan of Taihan ST Co., Ltd.	—
		2. Acquisition Plan of Stainless Corporation in South-east Asia	—
		3. Establishment of Continuous Galvanizing Line in India	—

2009-4	Sep 11	1. Establishment of Facility Center for Advanced Education for Employees	Approved
		2. FINEX #1 Plant Rationalization	Approved

2009-5	Sep 22	1. Installation of New plate heat-treating facility in Gwangyang Works.	Approved
		2. Installation of CEM continuous rolling facility in Gwangyang Works.	Approved
		3. Installation of the Soaking-pit for semi-finished products in Pohang Works.	Approved
		4. Logistics improvement in Pohang and Gwangyang Works.	Approved
2009-6	Oct 28	1. Investment on Stainless Steel Precision Mills	Approved
		2. Investment on Stainless Steel processing facility at POSCO VHPC	Approved
		3. Foundation of POSCO CYPC	Approved
		4. Facility Expansion: POSCO CTPC # 2 Plant	Approved

B. Audit Committee

Under Korean law and our articles of incorporation, we are required to have an Audit Committee. The Audit Committee may be composed of three or more directors; all members of the Audit Committee must be Outside Directors. Audit Committee members must also meet the applicable independent criteria set forth under the rules and regulations of the Securities Exchange Act. Members of the Audit Committee are elected by the shareholders at the ordinary general meeting of shareholders. We currently have an Audit Committee composed of four Outsdie Directors. Members of our Audit Committee are Park, Sang-Yong (committee chair), Jones, Jeffrey D., Sun, Wook and Lee, Chang-Hee.

The duties of the Audit Committee include:

	•		Engaging independent auditors;

	•		Approving independent audit fees;

	•		Approving audit and non-audit services;

	•		Reviewing annual financial statements;

	•		Reviewing audit results and reports, including management comments and recommendations;

	•		Reviewing our system of controls and policies, including those covering conflicts of interest and

			business ethics;

	•		Reviewing and approving all related party transactions; and

	•		Examining improprieties or suspected improprieties.

In addition, in connection with general meetings of Shareholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the board of directors at each general meeting of stockholders. Our internal and external auditors report directly to the Audit Committee. The committee holds regular meetings at least once each quarter, and more frequently as needed.

•

Composition of the Audit Committee (auditors)


Name	Qualifications	Remarks
Park, Sang-Yong	Satisfies requirements pursuant to the articles of incorporation	Chairman

Jones, Jeffrey D.
Sun, Wook

Lee, Chang-Hee

•

Major activities of the audit committee (auditors) (Jan. 1, 2009 — November 13, 2009)


Session	Date	Agenda	Approval
2009-1	Jan. 14	• Report Agenda • Reporting of operations of the Internal Accounting Control System for the 2H 2008 Fiscal Year	All 4 cases Approved

2009-2	Feb. 6	• Deliberation Agendas • Assessment of operations of the Internal Accounting Control System in 2008 • Results of the audit of account for the 2008 Fiscal Year • Report Agenda • Overview Results of the audit of account for the 2008 Fiscal Year by External Auditor	Approved Approved

2009-3	Feb. 27	• Deliberation Agenda • Appointment of the chair of the Audit Committee	Approved

2009-4	Apr.16	• Deliberation Agenda • Approval of audit and non-audit services for POSCO and POSCO’s subsidiaries • Report Agenda • Results of the audit of account for 1Q of the 2009 Fiscal Year • Reporting results for the audited consolidated financial statements (as well as US GAAP figures) for the 2008 Fiscal Year • Results of the audited consolidated financial statements for the 2008 Fiscal Year • Operation plans for 2009 • POSCO Managerial Accounting and Compensation Policy	Approved

2009-5	Jul.16	• Report Agenda • Results of audit for first half of the 2009 Fiscal Year • Reporting results for the audited consolidated financial statements (as well as US GAAP figures) for the 2008 Fiscal Year • Status for the application of K-IFRS • Reporting results of audit from 2004 to 2008

2009-6	Oct 14	• Deliberation Agenda • Approval of non-audit services for POSCO • Report Agenda • Results of the audited of financial statements for the 3Q of the 2009 Fiscal Year • Results of the audited consolidated financial statements for the first half of 2009 Fiscal Year • Results of the internal audit	Approved

C. Voting Rights by Shareholders

(1) Whether to Adopt the Cumulative Voting System

Introduced the Cumulative Voting System at the 36^th ordinary general meeting of shareholders on March 12, 2004.

(2) Whether to Adopt Voting by Mail

Introduced the Voting-by-Mail System at the 36^th Ordinary General meeting of shareholders on Mar. 12, 2004.

D. Compensation of Directors and Officers

(1) Current situation of salary to directors (including outside directors) and members of the Audit

Committee (auditors)


	Total payment	Ceiling amount approved at
Category	(2009)	shareholders Meeting	Remarks
Standing Director	2,499 million won	6 billion won

Outside Director	367 million won

members of the Audit Committee	151 million won

Total	3,017 million won

	•		Payment Period: ’09.1.1 ~’09.9.30

	•		Outside Director does not include the members of the Audit Committee

(2) List of Stock Options Presented to Executives


(As of September 30, 2009)
		Number of Share						Exercising	Exercising
Date of Grant	Name	Grant		Exercise		Remaining		Period	Price
Apr. 27, 2002	Chang-Kwan Oh		9,316		9,316		0	April 28, 2004	KRW 136,400
								~ April 27, 2009
Sep.18, 2002	Suk-Man Youn		11,179		11,179		0	Sep. 19, 2004	KRW 116,100
	Young-Tae Keon		9,316		9,316		0	~Sep. 18, 2009
Apr. 26, 2003	Kim,E. Han		2,401		0		2,401	April 27, 2005	KRW102,900
	Dong-Jin Kim		1,921		1,921		0	~April 26, 2010
	Tae-Hyun Hwang		1,921		1,921		0
	Youn Lee		1,921		1,921		0
	Seong-Sik Cho		1,921		192		1,729
	Oh-Joon, Kwon		9,604		9,604		0
	Dong-Hwa, Chung		9,604		5,960		3,644
	Jin-Il, Kim		9,604		9,542		62
	Dong-Hee, Lee		9,604		5,960		3,644
Jul. 23, 2004	Ku-Taek Lee		49,000		0		49,000	July 24, 2006	KRW 151,700
	Kyeong-Ryul Ryoo		4,900		0		4,900	~July 23, 2011
	Suk-Man Youn		7,840		0		7,840
	Dong-Jin Kim		7,840		0		7,840
	Youn Lee		7,840		7,840		0
	Joon Yang Chung		4,900		0		4,900
	Young Ju Park		1,862		0		1,862
	Yoon Suk Suh		1,862		1,000		862
	Keel Sou Chung		9,800		0		9,800
	Sang Wook Ha		9,800		0		9,800
	Sang Young Kim		9,800		0		9,800
	Sang Myun Kim		9,800		7,000		2,800
	Ki Chul Shin		9,800		0		9,800
	Byung Ki Jang		9,800		5,300		4,500
Apr. 28, 2005	Jong Doo Choi		2,000		0		2,000	April 29, 2007	KRW 194,900
	Nam Suk Hur		2,000		0		2,000	~April 28, 2012
	Yong Ghul Yoon		10,000		0		10,000
	Noi Ha Cho		10,000		0		10,000
	Wook Sun		2,000		0		2,000
	Charles Ahn		2,000		0		2,000

Total			251,156		87,972		163,184

•

The Stock Option Program was terminated at the 38^th Ordinary General Meeting of Shareholders(`06.2.24)

Independent Accountants’ Review Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders of
POSCO:

We have reviewed the accompanying non-consolidated statement of financial position of POSCO (the “Company”) as of September 30, 2009, and the related non-consolidated statements of income for the three-month and nine-month periods ended September 30, 2009 and 2008, and changes in equity and cash flows for the nine-month periods ended September 30, 2009 and 2008. These non-consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to issue a report on these non-consolidated financial statements based on our reviews.

We conducted our review in accordance with the Review Standards for Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. These Standards require that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review consists principally of inquiries of company personnel and analytical procedures applied to financial data and, thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Based on our reviews, nothing has come to our attention that causes us to believe that the non-consolidated financial statements referred to above are not presented fairly, in all material respects, in accordance with accounting principles generally accepted in the Republic of Korea.

The non-consolidated statement of financial position as of December 31, 2008, and the related non-consolidated statements of income, appropriation of retained earnings, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us and our report thereon, dated February 9, 2009, expressed an unqualified opinion on those statements. The accompanying non-consolidated statement of financial position as of December 31, 2008, presented for comparative purposes, is not different from that audited by us in all material respects.

The following matters may be helpful to the readers in their understanding of the non-consolidated financial statements:

As discussed in note 2 to the non-consolidated financial statements, accounting principles and review standards and their application in practice vary among countries. The accompanying non-consolidated financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to review such non-consolidated financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report and the accompanying non-consolidated financial statements are for use by those knowledgeable about Korean accounting procedures and review standards and their application in practice.

Seoul, Korea
October 29, 2009

This report is effective as of October 29, 2009, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying non-consolidated financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

POSCO
Non-Consolidated Statements of Financial Position
As of September 30, 2009 and December 31, 2008
(Unaudited)


(in millions of Won)	2009			2008

Assets
Cash and cash equivalents (note 3)	W	1,007,081			941,687
Short-term financial instruments (note 3)		4,323,325			1,524,598
Trading securities (note 5)		431,588			1,236,185
Current portion of available-for-sale securities (note 7)		20,228			—
Current portion of held-to-maturity securities (note 7)		20,000			20,000
Trade accounts and notes receivable, net of allowance for doubtful accounts (notes 4 and 23)		2,493,814			3,228,679
Other accounts receivable, net of allowance for doubtful accounts (note 4 and 23)		100,555			278,301
Inventories (note 6)		3,483,028			6,415,601
Deferred income tax assets (note 20)		213,974			—
Other current assets (note 11)		99,520			48,173


Total current assets		12,193,113			13,693,224

Property, plant and equipment at cost (note 8)		39,051,742			36,504,565
Less accumulated depreciation		(23,162,404	)		(22,038,647	)

Property, plant and equipment, net		15,889,338			14,465,918

Investment securities, net (notes 7)		9,861,763			8,625,939
Intangible assets, net (note 9)		154,508			170,095
Long-term trade accounts and notes receivable, net of allowance for doubtful accounts (note 4)		2,270			4,154
Long-term financial instruments (note 3)		40			40
Other long-term assets, net of allowance for doubtful accounts (note 11)		83,118			74,083


Total non-current assets		25,991,037			23,340,229


Total assets	W	38,184,150			37,033,453

See accompanying notes to non-consolidated financial statements.

POSCO
Non-Consolidated Statements of Financial Position
As of September 30, 2009 and December 31, 2008
(Unaudited)


(in millions of Won)	2009			2008

Liabilities
Trade accounts and notes payable (note 23)	W	961,035			1,108,856
Short-term borrowings (note 12)		491,552			340,827
Current portion of long-term debt, net of discount on debentures issued (notes 12 and 13)		2,370			203,641
Accrued expenses		121,330			139,494
Other accounts payable (note 23)		646,610			694,682
Withholdings		53,093			40,042
Income tax payable		9,861			1,628,262
Deferred income tax liabilities (note 20)		—			90,307
Other current liabilities (note 15)		68,892			37,087


Total current liabilities		2,354,743			4,283,198

Long-term debt, net of current portion and discount on debentures issued (note 13)		5,784,206			4,584,681
Accrued severance benefits, net (note 14)		206,018			260,368
Deferred income tax liabilities (note 20)		325,224			36,533
Other long-term liabilities		86,183			85,016


Total non-current liabilities		6,401,631			4,966,598


Total liabilities		8,756,374			9,249,796


Shareholders’ Equity
Capital stock		482,403			482,403
Capital surplus		4,288,006			4,291,355
Capital adjustments		(2,502,014	)		(2,502,014	)
Accumulated other comprehensive income		491,450			51,790
Retained earnings		26,667,931			25,460,123


Total shareholders’ equity		29,427,776			27,783,657


Total liabilities and shareholders’ equity	W	38,184,150			37,033,453

See accompanying notes to non-consolidated financial statements.

POSCO
Non-Consolidated Statements of Income
For the three-month and nine-month periods ended September 30, 2009 and 2008
(Unaudited)


	For the three-month period				For the nine-month period
	ended September 30				ended September 30
(in millions of Won, except per share amounts)	2009		2008		2009		2008

Sales (notes 23 and 24)	W	6,850,514		8,812,977		19,665,813		22,337,118
Cost of goods sold (note 25)		5,499,854		6,450,476		17,208,604		16,158,116

Gross profit		1,350,660		2,362,501		2,457,209		6,179,002
Selling and administrative expenses (note 19)		332,907		379,172		895,990		1,036,548

Operating profit		1,017,753		1,983,329		1,561,219		5,142,454

Non-operating income
Interest income		52,048		49,717		140,333		132,244
Dividend income		11,280		7,388		60,114		76,637
Gain on valuation of trading securities		1,394		1,186		1,961		10,537
Gain on disposal of trading securities		1,523		10,789		19,877		37,083
Gain on disposal of investments		—		1,872		8,939		1,946
Gain on disposal of property, plant and equipment		4,597		3,538		14,215		7,900
Gain on derivatives transactions (note 17)		13,100		1,049		33,458		1,356
Gain on valuation of derivatives (note 17)		172		14,196		6,337		14,196
Gain on foreign currency transactions		143,570		173,483		555,606		285,668
Gain on foreign currency translation		106,927		38,861		318,736		43,957
Equity in earnings of equity method accounted investments (note 7)		156,066		30,328		520,983		347,257
Reversal of allowance for doubtful accounts		—		654		422		3,306
Gain on disposal of other long-term assets		1,087		4,250		1,233		28,344
Reversal of stock compensation expense (note 18)		—		34,372		—		34,372
Others		11,129		22,826		36,490		70,574

		502,893		394,509		1,718,704		1,095,377

Non-operating expenses
Interest expense		75,353		39,907		216,198		96,801
Other bad debt expense		556		622		21		588
Loss on valuation of trading securities		373		—		373		—
Loss on foreign currency transactions		127,052		268,156		653,051		391,780
Loss on foreign currency translation		—		193,635		20,678		397,635
Donations		25,717		11,702		40,862		84,704
Loss on disposal of property, plant and equipment		18,417		11,588		54,443		33,944
Equity in losses of equity method accounted investments (note 7)		54,034		54,893		174,408		130,166
Loss on impairment of investments		—		96,785		—		96,785
Loss on disposal of investments		13		33		13		117
Loss on derivative transactions (note 17)		—		526		19,281		526
Loss on disposal of trade accounts and notes receivable		822		2,446		4,080		5,961
Loss on impairment of other long-term assets
Loss on disposal of other long-term assets		—		32		271		298
Others		12,174		18,532		35,265		40,008

		314,511		698,857		1,218,944		1,279,313


Income before income taxes		1,206,135		1,678,981		2,060,979		4,958,518
Income tax expense (note 20)		64,244		460,264		164,042		1,233,022


Net income(note 21)	W	1,141,891		1,218,717		1,896,937		3,725,496


Basic earnings per share (note 22)	W	14,913		16,165		24,774		49,408

See accompanying notes to non-consolidated financial statements.

POSCO
Non-Consolidated Statements of Changes in Equity
For the nine-month periods ended September 30, 2009 and 2008
(Unaudited)


	Capital		Capital		Capital			Accumulated Other			Retained
(in millions of Won)	Stock		Surplus		Adjustments			Comprehensive Income			Earnings			Total
Balance as of January 1, 2008	W	482,403		4,128,839		(2,715,964	)		839,727			21,768,227			24,503,232
Year-end dividends		—		—		—			—			(566,552	)		(566,552	)
Net income		—		—		—			—			3,725,496			3,725,496
Interim dividends		—		—		—			—			(188,485	)		(188,485	)
Changes in capital surplus of equity method accounted investments		—		9,516		—			—			—			9,516
Acquisition of treasury stock		—		—		(36,832	)		—			—			(36,832	)
Loss on valuation of avilable-for-sale securities,net		—		—		—			(759,156	)		—			(759,156	)
Changes in capital adjustment arising from equity method accounted investments		—		—		—			379,558			—			379,558

Balance as of September 30, 2008	W	482,403		4,138,355		(2,752,796	)		460,129			24,738,686			27,066,777


	Capital		Capital			Capital			Accumulated Other		Retained
(in millions of Won)	Stock		Surplus			Adjustments			Comprehensive Income		Earnings			Total
Balance as of January 1, 2009	W	482,403		4,291,355			(2,502,014	)		51,790		25,460,123			27,783,657
Year-end dividends		—		—			—			—		(574,274	)		(574,274	)
Net income		—		—			—			—		1,896,937			1,896,937
Interim dividends		—		—			—			—		(114,855	)		(114,855	)
Changes in capital surplus of equity method accounted investments		—		(3,349	)		—			—		—			(3,349	)
Gain on valuation of avilable-for-sale securities,net		—		—			—			419,075		—			419,075
Changes in capital adjustment arising from equity method accounted investments		—		—			—			20,585		—			20,585

Balance as of September 30, 2009	W	482,403		4,288,006			(2,502,014	)		491,450		26,667,931			29,427,776

See accompanying notes to non-consolidated financial statements.

POSCO
Non-Consolidated Statements of Cash Flows
For the nine-month periods ended September 30, 2009 and 2008
(Unaudited)


(in millions of Won)	2009			2008
Cash flows from operating activities
Net income	W	1,896,937			3,725,496
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		1,517,371			1,419,183
Accrual of severance benefits		—			158,153
Gain on disposal of trading securities		(19,877	)		(37,083	)
Gain on valuation of trading securities, net		(1,588	)		(10,537	)
Loss on disposal of property, plant and equipment, net		40,228			26,044
Gain on valuation of derivative transactions		(6,337	)		(14,196	)
Gain on derivatives transactions, net		(14,177	)		(830	)
(Recovery of) stock compensation expense		21,316			(34,372	)
Gains on disposal of Investments, net		(8,926	)		(1,829	)
Loss on impairment of Investments		—			96,785
Loss (gain) on foreign currency translation, net		(309,229	)		373,552
Loss on disposal of trade accounts and notes receivable		4,080			5,961
Provision for allowance for doubtful accounts, net		8,495			(2,718	)
Gain on disposal of other long-term assets, net		(962	)		(28,046	)
Other employee benefit		5,124			5,434
Equity in earnings of equity method accounted investments, net		(346,575	)		(217,091	)
Interest expense		14,331			3,781
Interest income		(900	)		(1,822	)
Others		1,052			4,852


		903,426			1,745,221


Changes in Operating assets and liabilities
Trade accounts and notes receivable		721,841			(1,282,732	)
Other accounts and notes receivable		178,823			(57,289	)
Accrued income		871			(11,626	)
Prepaid expenses		(51,966	)		(41,971	)
Inventories		2,927,648			(2,105,203	)
Trade accounts and notes payable		(137,431	)		581,112
Other accounts payable		(48,778	)		(31,627	)
Accrued expenses		(18,164	)		92,346
Income tax payable		(1,618,400	)		434,091
Payment of severance benefits		(62,340	)		(53,248	)
Deferres income tax assets and liabilities		(130,714	)		(24,125	)
Other current liabilities		26,486			26,678
Deposit for severance benefit trust		11,863			(60,610	)
Advances received		10,189			21,887
Dividends from equity method accounted investments		30,711			47,032
Others, net		6,899			14,539


		1,847,538			(2,450,746	)


Net cash provided by operating activities		4,647,901			3,019,971

See accompanying notes to non-consolidated financial statements.

POSCO
Non-Consolidated Statements of Cash Flows
For the nine-month periods ended September 30, 2009 and 2008
(Unaudited)


(in millions of Won)	2009			2008
Cash flows from investing activities
Disposal of short-term financial instruments	W	4,662,209			2,637,105
Disposal of trading securities		2,626,062			5,651,153
Redemption of current portion of held-to-maturity securities		40,000			346,412
Disposal of available-for-sale securities		17,093			782
Disposal of equity method accounted investments		—			8,606
Disposal of other non-current assets		12,433			82,369
Disposal of property, plant and equipment		15,426			30,115
Acquisition of short-term financial instruments		(7,460,936	)		(3,506,494	)
Acquisition of trading securities		(1,800,000	)		(5,304,993	)
Acquisition of available-for-sale securities		(232,323	)		(433,598	)
Acquisition of equity method investments		(164,507	)		(295,410	)
Acquisition of current portion of held-to-maturity securities		(40,000	)		(186,417	)
Acquisition of other long-term assets		(10,718	)		(8,900	)
Acquisition of property, plant and equipment		(2,927,914	)		(1,899,809	)
Cost of removal of property, plant and equipment		(44,989	)		(18,914	)
Acquisition of intangible assets		(9,468	)		(14,289	)
Others, net		(7,716	)		(5,499	)


Net cash used in investing activities		(5,325,348	)		(2,917,781	)


Cash flows from financing activities
Proceeds from short-term borrowings		1,972,180			607,893
Proceeds from long-term borrowings		19,743			—
Proceeds from issuance of debentures		1,449,728			967,674
Increase of other long-term liabilities		33,954			25,824
Repayment of short-term borrowings		(1,804,235	)		(171,953	)
Repayment of current portion of long-term liabilities		(202,181	)		(431,637	)
Payment of cash dividends		(689,129	)		(755,037	)
Decrease in other long-term liabilities		(31,773	)		(20,637	)
Decrease in capital lease obligations		(5,446	)		(575	)
Acquisition of treasury stock		—			(36,832	)


Net cash provided by financing activities		742,841			184,720


Net increase in cash and cash equivalents		65,394			286,910

Cash and cash equivalents
Cash and cash equivalents at beginning of the year		941,687			691,034

Cash and cash equivalents at end of the year	W	1,007,081			977,944

See accompanying notes to non-consolidated financial statements.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

1.		The Company

		POSCO (the “Company”) was incorporated on April 1, 1968, under the Commercial Code of the Republic of Korea to manufacture and sell steel rolled products and plates in the domestic and overseas markets. The shares of the Company have been listed on the Korea Stock Exchange since 1988. The Company owns and operates two steel plants (Pohang and Gwangyang) and one office in Korea, and it also operates internationally through seven of its overseas liaison offices.

		As of September 30, 2009, the shares of the Company are listed on the Korea Stock Exchange, while its depository receipts are listed on the New York, Tokyo and London Stock Exchanges.

2.		Summary of significant accounting policies

		The Company maintains its accounting records in Korean Won and prepares statutory non-consolidated financial statements in the Korean language in conformity with accounting principles generally accepted in the Republic of Korea. Certain accounting principles applied by the Company that conform with financial accounting standards and accounting principles in the Republic of Korea may not conform with generally accepted accounting principles in other countries. Accordingly, these financial statements are intended for use by those who are informed about Korean accounting principles and practices. The accompanying non-consolidated financial statements have been condensed, restructured and translated into English from the Korean language non-consolidated financial statements.

		The accounting policies were consistently applied for the non-consolidated financial statements both as of and for the nine-month period ended September 30, 2009 and as of and for the year ended December 31, 2008.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

3.		Cash and Cash Equivalents, and Financial Instruments

		Cash and cash equivalents, short-term and long-term financial instruments as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)		2009		2008
Cash and cash equivalents
Checking accounts		—	W	1,691		1,356
Money market deposit accounts		2.20 ~ 2.90		342,500		241,000
Time deposits		2.80 ~ 3.45		150,000		560,000
Time deposits in foreign currency		0.10 ~ 1.63		492,890		139,331
Repurchase agreement		2.50		20,000		—

			W	1,007,081		941,687


Short-term financial instruments
Ordinary deposits (*1)		—		12,593		5,887
Time deposits		3.06 ~ 4.45		1,950,000		910,000
Certificates of deposit		3.09 ~ 4.80		2,020,000		490,000
Repurchase agreement		3.24 ~ 3.82		280,000		60,000
Specified money in trust		—		60,732		58,711

			W	4,323,325		1,524,598


Long-term financial instruments

Guarantee deposits for opening accounts (*2)		—	W	40		40


(*1)		In relation to projects outsourced to the Company by the Korean government, these deposits are restricted in use.

(*2)		The Company is required to provide deposits to maintain checking accounts and accordingly, the withdrawal of these deposits is restricted.

4.		Accounts and Notes Receivable

		Accounts and notes receivable, and their respective allowance for doubtful accounts as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009			2008
Trade accounts and notes receivable	W	2,505,066			3,232,490
Less: Allowance for doubtful accounts		(11,252	)		(3,811	)

	W	2,493,814			3,228,679


Other accounts receivable	W	111,174			290,015
Less: Allowance for doubtful accounts		(10,619	)		(11,714	)

	W	100,555			278,301


Long-term trade accounts and notes receivable	W	3,114			4,353
Less: Allowance for doubtful accounts		(844	)		(199	)

	W	2,270			4,154

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

5. Trading Securities

Trading securities as of September 30, 2009 and December 31, 2008 are as follows:

2009

2008

(in millions of Won)

Acquisition Cost

Fair Value

Book Value

Beneficiary certificates

430,000

431,588

1,236,185

6. Inventories

Inventories as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009		2008
Finished goods	W	369,656		1,194,588
By-products		4,015		16,034
Semi-finished goods		900,562		1,542,922
Raw materials		829,141		1,644,500
Fuel and materials		436,880		428,466
Materials-in-transit		942,241		1,592,502
Others		533		592

		3,483,028		6,419,604
Less: Provision for valuation loss		—		(4,003	)

	W	3,483,028		6,415,601

7. Investment Securities

(a) Investment securities as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009			2008
Available-for-sale securities
Marketable equity securities	W	3,391,567			2,818,507
Non-marketable equity securities		816,588			761,644
Investments in bonds		120,413			—
Equity investments		500			500

		4,329,068			3,580,651
Less: Current portion		(20,228	)		—

		4,308,840			3,580,651

Held-to-maturity securities		51,643			51,553
Less: Current portion		(20,000	)		(20,000	)

		31,643			31,553

Equity method accounted investments		5,521,280			5,013,735

	W	9,861,763			8,625,939

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(b) Investments in marketable equity securities as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009										2008
	Number of		Percentage of		Acquisition		Fair		Book		Book
Company	Shares		Ownership (%)		Cost		Value		Value		Value
SK Telecom Co., Ltd. (*1)		4,372,096		5.41	W	1,222,528	W	806,406	W	806,406	W	891,835
Hana Financial Group Inc.		4,663,776		2.20		29,998		189,349		189,349		90,943
Nippon Steel Corporation (*1)		238,352,000		3.50		719,622		1,031,031		1,031,031		963,486
Hyundai Heavy Industries		1,477,000		1.94		343,506		265,860		265,860		294,661
Hanil Iron & Steel Co., Ltd.		206,798		10.14		2,413		2,688		2,688		1,596
HISteel Co., Ltd.		135,357		9.95		1,609		2,112		2,112		1,766
Moonbae Steel Co., Ltd.		1,849,380		9.02		3,588		5,548		5,548		3,921
Dong Yang Steel Pipe Co., Ltd.		1,564,250		2.44		3,911		1,697		1,697		1,400
Korea Line Corporation		—		—		—		—		—		14,347
Shinhan Financial Group Inc.		4,369,881		0.92		228,778		205,384		205,384		113,326
SeAH Steel Corp.		610,103		10.17		18,792		21,964		21,964		23,490
Thainox Stainless Public Company Limited		1,200,000,000		15.00		42,301		57,707		57,707		40,299
Union Steel Co., Ltd.		1,005,000		9.80		40,212		23,919		23,919		14,472
Macarthur Coal Limited		21,215,700		8.34		420,805		207,811		207,811		55,927
Hanjin Shipping Co., Ltd.		68,260		0.08		2,652		1,403		1,403		1,236
KB Financial Group Inc.		9,030,870		2.34		324,399		546,368		546,368		282,402
LG Powercomm Co., Ltd.		3,600,000		2.70		153,000		22,320		22,320		23,400

					W	3,558,114	W	3,391,567	W	3,391,567	W	2,818,507


(*1)		Certain portion of securities has been pledged as collateral (note 10).

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)


(in millions of Won)							2008		Increase (Decrease)						2009
												Other
			Percentage of						Equity			Increase
	Number of		Ownership		Acquisition				method			(Decrease)
*Investees (1)**	Shares		(%)		Cost		Book Value		Profit (Loss)			*(2)**			Book Value
Domestic
POSCO E&C Co., Ltd.		27,281,080		89.53	W	365,789	W	864,030	W	184,162		W	(25,610	)	W	1,022,582
Posteel Co., Ltd.		17,155,000		95.31		113,393		319,914		81,141			6,418			407,473
POSCON Co., Ltd.		3,098,610		88.04		49,822		49,099		11,815			(1,522	)		59,392
POSCO Coated & Color Steel Co., Ltd.		3,412,000		56.87		82,017		103,912		1,865			—			105,777
POSCO Machinery & Engineering Co., Ltd.		1,700,000		100.00		17,052		30,824		(5,380	)		(895	)		24,549
POSDATA Co., Ltd. (*3)		50,440,720		61.85		52,749		39,544		(39,544	)		—			—
POSCO Research Institute		3,800,000		100.00		19,000		23,356		2,100			—			25,456
Seung Kwang Co., Ltd.		2,737,000		69.38		28,408		27,957		1,568			—			29,525
POSCO Architects & consultants Co., Ltd.		300,000		100.00		1,743		14,838		1,261			142			16,241
POSCO Specialty Steel Co., Ltd.		26,000,000		100.00		260,000		564,515		43,659			(1,280	)		606,894
POSCO Machinery Co., Ltd.		1,000,000		100.00		10,000		13,363		(5,186	)		—			8,177
POSTECH Venture Capital Corp.		5,700,000		95.00		28,500		33,059		73			536			33,668
eNtoB Corporation (*4)		560,000		17.50		2,800		4,178		243			(140	)		4,281
POSCO Refractories & Environment Co., Ltd.		3,544,200		60.00		41,210		74,329		20,721			(2,734	)		92,316
POSCO Terminal Co., Ltd.		2,550,000		51.00		12,750		19,681		3,553			(638	)		22,596
POSMATE Co., Ltd		214,286		30.00		7,233		10,436		1,202			(843	)		10,795
Samjung Packing & Aluminum Co., Ltd. (*4)		270,000		9.00		2,781		4,035		(59	)		570			4,546
POSCO Power Corp.		40,000,000		100.00		597,170		619,037		19,834			4,008			642,879
SNNC Co., Ltd		18,130,000		49.00		90,650		67,410		21,127			—			88,537
PNR Corporation		5,467,686		70.00		27,338		27,498		2,243			—			29,741
POSCOAST CO., Ltd.		3,400,000		85.00		76,134		—		(606	)		76,134			75,528
POSHIMETAL Co., Ltd.		1,300,000		65.00		6,500		—		(113	)		6,500			6,387
POSCO E&E Co., Ltd.		3,480,000		100.00		17,400		—		(221	)		17,400			17,179

						1,910,439		2,911,015		345,458			78,046			3,334,519


Foreign
POSCO America Corporation		362,027		99.45		306,589		133,944		(13,836	)		(14,086	)		106,022
POSCO Australia Pty. Ltd.		761,775		100.00		37,352		165,573		26,273			115,895			307,741
POSCO Asia Co., Ltd.		9,360,000		100.00		7,425		29,158		4,532			(1,992	)		31,698
VSC POSCO Steel Corporation (*5)		—		35.00		4,758		6,343		1,186			(608	)		6,921
Dalian POSCO-CFM Coated Steel Co., Ltd. (*5)		—		30.00		7,189		3,756		(1,965	)		(49	)		1,742
POS-Tianjin Coil Center Co., Ltd. (*4,5)		—		10.00		653		1,303		112			(80	)		1,335
Zhangjiagang Pohang Stainless Steel Co., Ltd. (*5)		—		58.60		234,204		323,170		(8,154	)		(17,224	)		297,792
Guangdong Pohang Coated Steel Co., Ltd. (*5)		—		86.55		45,503		20,901		7,901			33			28,835
POSCO Thailand Bangkok Processing Center Co., Ltd.		12,721,734		85.62		39,677		32,934		(8,363	)		140			24,711
Myanmar POSCO Steel Co., Ltd.		13,440		70.00		2,192		3,796		2,260			(426	)		5,630

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)


(in millions of Won)							2008		Increase (Decrease)						2009
												Other
			Percentage of						Equity			Increase
	Number of		Ownership		Acquisition				method			(Decrease)
*Investees (1)**	Shares		(%)		Cost		Book Value		Profit (Loss)			*(2)**			Book Value
KOBRASCO		2,010,719,185		50.00		32,950		60,429		31,533			17,168			109,130
POSCO Investment Co., Ltd.		5,000,000		100.00		53,189		91,303		5,258			(5,160	)		91,401
Poschrome (Proprietary) Limited		21,675		25.00		4,859		9,575		995			2,462			13,032
Guangdong Xingpu Steel Center Co., Ltd. (*6)		—		—		—		2,669		—			(2,669	)		—
POS-Hyundai Steel Manufacturing India Private Limited (*4)		2,345,558		10.00		1,057		1,600		105			(391	)		1,314
POSVINA Co., Ltd. (*5)		—		50.00		1,527		2,104		680			(238	)		2,546
POSCO-MKPC SDN. BHD.		25,269,900		44.69		12,574		18,037		920			(1,071	)		17,886
PT POSMI Steel Indonesia (*4)		1,193		9.47		782		1,020		(112	)		122			1,030
Qingdao Pohang Stainless Steel Co., Ltd. (*5)		—		70.00		71,463		75,888		328			(4,226	)		71,990
POSCO (Suzhou) Automotive Processing Center Co., Ltd. (*5)		—		90.00		31,023		48,401		5,558			(3,155	)		50,804
POSCO-China Holding Corp. (*5)		—		100.00		165,233		228,489		1,237			(12,982	)		216,744
POSCO-Japan Co., Ltd.		90,438		100.00		55,004		65,457		24,598			(6,971	)		83,084
POSCO-India Private Ltd.		225,000,000		100.00		52,627		54,651		—			(3,398	)		51,253
POS-India Pune Steel Processing Centre Pvt. Ltd.		74,787,080		65.00		17,017		14,096		3,210			(1,554	)		15,752
POSCO-Foshan Steel Processing Center Co., Ltd. (*5)		—		39.60		9,408		12,971		1,349			(837	)		13,483
Nickel Mining Company		3,234,698		49.00		157,585		219,879		(5,546	)		(18,377	)		195,956
POSCO-Vietnam Co., Ltd. (*5)		—		100.00		198,578		232,647		(17,740	)		(21,091	)		193,816
POSCO-Mexico Co., Ltd.		1,304,955,672		84.67		117,950		103,485		(32,035	)		(1,416	)		70,034
POSCO-India Delhi Steel Processing Centre Pvt. Ltd.		42,532,980		76.40		9,089		—		3,298			(392	)		2,906
POS-SK Steel (PingHu) Processing Center Co., Ltd. (*5)		—		20.00		1,869		2,977		(1,102	)		(29	)		1,846
POSCO-Poland Wroclaw Steel Processing Center Co., Ltd.		30,000		30.00		3,803		3,225		625			(154	)		3,696
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd. (*5)		—		24.00		6,718		11,959		(242	)		(695	)		11,022
POSCO Vietnam Processing Center Co., Ltd. (*5)		—		80.00		8,192		6,234		349			(476	)		6,107
POSCO (Chongqing) Automotive Processing Center Co., Ltd. (*5)		—		90.00		6,201		7,618		1,273			(565	)		8,326
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. (*5)		—		25.00		61,961		92,064		(31,786	)		(2,456	)		57,822
POSS-SLPC s.r.o. (*5)		—		30.00		1,794		3,109		(465	)		(47	)		2,597
POSCO Malaysia SDN. BHD. (*7)		16,200,000		60.00		16,524		—		(1,024	)		1,024			—
POSCO (Wuhu) Automative Processing Center Co., Ltd. (*5)		—		68.57		10,025		11,955		139			(701	)		11,393
POSCO-SAMSUNG Steel Processing Center Co., Ltd. (*5,8)		—		30.00		1,608		—		(928	)		2,432			1,504
POSCO VST Co., Ltd.		55,000,000		90.00		66,333		—		696			67,164			67,860

						1,862,485		2,102,720		1,117			82,924			2,186,761

					W	3,772,924	W	5,013,735	W	346,575		W	160,970		W	5,521,280

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)


(*1)		Due to the difference in the closing schedule of investees’ financial statements, the Company used the unaudited or unreviewed financial statements of these companies as of September 30, 2009, when applying the equity method of accounting.

(*2)		Other increase (decrease) represents the changes in investment securities primarily due to acquisitions (disposals), dividends received, valuation gain or loss on equity method accounted investments, changes in retained earnings and others.

(*3)		The equity method of accounting has been suspended for investment in POSDATA Co., Ltd. as the Company’s net investments have been reduced to zero. Unrecorded changes in equity interest in POSDATA Co., Ltd. for the nine-month period ended September 30, 2009 was W 1,253 million.

(*4)		Equity method of accounting is applied as the Company has significant influence over investees directly or indirectly through its affiliates by owning more than 20% of outstanding shares of investees.

(*5)		No shares have been issued in accordance with the local laws or regulations.

(*6)		Due to the sales of the interest previously owned by a subsidiary, the Company no longer has significant influence for Guangdong Xingpu Steel Center Co., Ltd. Therefore, the Company has reclassified it to available-for-sale securities from equity method accounted investments.

(*7)		The equity method of accounting has been suspended for investment in POSCO Malaysia SDN. BHD. as the Company’s net investments have been reduced to zero. Unrecorded changes in equity interest in POSCO Malaysia SDN. BHD. for the nine-month period ended September 30, 2009 was W 2,272 million and the accumulated unrecorded change in the interest prior to 2009 amounted to W 2,102 million.

(*8)		This investment was reclassified to equity method accounted investment from available-for-sale securities, since its total assets were greater than W 10,000 million as of December 31, 2008.

For the period ended September 30, 2009, amortization of goodwill amounted to W 18,018 million and the the elimination of the unrealized profit from intercompany transaction less realized profit amounted to W 183,169 million.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

8. Property, Plant and Equipment

(a)

Changes in property, plant and equipment for the nine-month period ended September 30, 2009 are as follows:


	Beginning													Ending
(in millions of Won)	Balance		*Acquisition (1)**		Disposal			*Others (2)**			Depreciation			Balance
Land	W	908,306	W	40,801	W	—		W	(592	)	W	—		W	948,515
Buildings		1,978,609		200,143		(747	)		(912	)		(130,635	)		2,046,458
Structures		1,490,098		61,444		(3,054	)		16,344			(93,277	)		1,471,555
Machinery and equipment		7,346,339		2,320,970		(6,701	)		(16,351	)		(1,236,406	)		8,407,851
Vehicles		20,302		2,974		(15	)		—			(6,333	)		16,928
Tools		17,317		7,465		(72	)		—			(7,480	)		17,230
Furniture and fixtures		54,025		8,341		(16	)		—			(13,931	)		48,419
Capital Lease Assets		10,192		—		—			—			(478	)		9,714
Construction-in-progress		2,640,730		2,927,914		—			(2,645,976	)		—			2,922,668

	W	14,465,918	W	5,570,052	W	(10,605	)	W	(2,647,487	)	W	(1,488,540	)	W	15,889,338


(*1)		Includes acquisition cost transferred from construction-in-progress amounting to W 2,642,138 million.

(*2)		Represent assets transferred from construction-in-progress to intangible assets and other property, plant and equipment.

(b)

The Company’s expenditures in relation to construction-in-progress for the expansion of Pohang transporting plates amounted to W 2,927,914 million for the nine-month period ended September 30, 2009.

9. Intangible Assets

Intangible assets, net of amortization, as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009		2008
Intellectual property rights	W	2,683		2,479
Port facilities usage rights		104,248		116,554
Other intangible assets (*1)		47,577		51,062

	W	154,508		170,095


(*1)		The Company capitalized costs directly related to the Enterprise Resource Planning (ERP) system and process innovation as other intangible assets.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

10. Pledged assets

	(a)		As of September 30, 2009, treasury bills amounting to W 29,742 million and the bonds amounting to W 1,901 million issued by the Seoul metropolitan rapid transit Corporation, among the held-to-maturity securities, were provided as collateral to the Gyungsangbuk-do Province Office as guarantee for environmental remediation of POSCO No. 4 disposal site.

	(b)		As of September 30, 2009, 2,030,526 shares, equivalent to 18,274,731 American depository receipts (“ADRs”) of SK Telecom Co., Ltd. have been pledged as collateral for the exchangeable bonds issued (note 13) and 164,893,000 shares of Nippon Steel Corporation have been pledged as collateral for the 1st samuri bonds issued.

	(c)		Guarantees provided by third parties on behalf of the Company as of September 30, 2009 and December 31, 2008 were as follows:

(in millions of Won)

2009

2008

Korea Development Bank

EUR

4,125,918

7,155

EUR

4,600,591

8,171

11. Other Assets

Other current and other long-term assets as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009			2008
Other current assets
Short-term loans receivable	W	—			14
Accrued income		33,525			34,396
Advanced payments		5,245			3,729
Prepaid expense		60,750			8,784
Others		—			1,250

	W	99,520			48,173


Other long-term assets
Log-term loans receivable	W	15,322			6,637
Guarantee deposits		1,688			1,413
Other investment assets		66,794			66,066

		83,804			74,116
Less: Allowance for doubtful accounts		(686	)		(33	)

	W	83,118			74,083

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

12. Short-Term Borrowings and Current Portion of Long-Term Debt

(a)

Short-term borrowings as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)		2009				2008
Domestic borrowings		2.55	KRW	130,000	W	130,000		—	—
Foreign currency borrowings		1.80 ~ 3.27
			USD	304,157,637		361,552		271,035,408	340,827

					W	491,552			340,827

(b)

Current portion of long-term debts as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)		2009				2008
Debentures		4.66	KRW	—	W	—		200,000	200,000
Foreign currency borrowings		4.60	JPY	96,000,000		1,266		192,000,000	2,676
Loans from foreign financial institutions		2.00	EUR	636,350		1,104		636,350	1,130

						2,370			203,806

Less: Discount on debentures issued						—			(165	)

					W	2,370			203,641

13. Long-Term Debts

(a)

Debentures as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Issue date	Maturity	Annual Interest Rate (%)	2009					2008
Domestic debentures	Mar. 28, 2006~	Sep. 29, 2009~	4.66 - 6.52	KRW	2,300,000	W	2,300,000			2,000,000	2,000,000
	Jan. 20, 2009	Jan. 20, 2014
9th Samurai Bonds	Jun. 28, 2006	Jun. 28, 2013	2.05	JPY	50,000,000,000		659,400			50,000,000,000	696,945
Euro Bonds	Aug. 10, 2006	Aug. 10, 2016	5.88	USD	300,000,000		356,610			300,000,000	377,250
Exchangeable bonds (*1)	Aug. 19, 2008	Aug. 19, 2011	—	JPY	52,795,000,000		696,260			52,795,000,000	735,904
Yen denominated FRN	Nov. 11, 2008	Nov. 11, 2013	6 Months Tibor+2.60	JPY	20,000,000,000		263,760			20,000,000,000	278,778
1st Samurai Private Equity Bonds	Dec. 29, 2008	Dec. 29, 2011	6 Months Tibor+1.60	JPY	50,000,000,000		659,400			50,000,000,000	696,945
Global Bonds	Mar. 26, 2009	Mar. 26, 2014	8.75	USD	700,000,000		832,090			—	—

							5,767,520				4,785,822
Add: Premium on bond redemption							10,514				11,112
Less: Current portion							—				(200,000	)
Discount on debentures issued							(71,853	)			(71,525	)

						W	5,706,181				4,525,409

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)


(*1)		The Company issued exchangeable bonds, which is exchangeable with 17,603,801 SK Telecom Co., Ltd. ADRs, on August 19, 2008. Details of exchangeable bonds are as follows:


		Issuance date:		August 19, 2008
		Maturity date:		August 19, 2013
		Rate:		Interest rate of zero percent
		Face value:		JPY 52,795,000,000
		Issuance price:		JPY 52,424,229,136
		Premium on bond redemption :		JPY 797,204,500 (redeemed on put date or maturity date)
		Exchangeable price:		JPY 2,999.11/ADR
		Fair value of an exchangeable right		JPY 2,867,605,334
		Fair value of an exchangeable right as of September 30, 2009:		JPY 216,987,450
		ADR exchangeable as of September 30, 2009:		ADR 18,274,731
		Exercise period of exchangeable right:		Commercing ten business days following the issuance date until ten business days prior to maturity date
		Exercisable date of put by bondholders:		August 19, 2011

The Company issued exchangeable bonds which is exchangeable with SK Telecom Co., Ltd. ADRs through Zeus (Cayman) Ltd., a SPV. The transaction between the Company and Zeus (Cayman) Ltd. is deemed to be a borrowing transaction under generally accepted accounting principles in the Republic of Korea.

(b)

Long-term domestic borrowings as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)	2009		2008
Korea Resources Corporation	Representive-Borrowing Rate(*1)-2.25	W	55,114		49,308
Woori Bank	Representive-Borrowing Rate(*1)-1.25		13,269		—

		W	68,383		49,308


(*1)		Indexed to the average yield of 3-year government bond which is rounded off to the nearest 0.25%.

(c)

Long-term foreign currency borrowings as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)		2009					2008
Korea National Oil Corporation (*1)	Representive-Borrowing Rate-2.25	USD		2,851,409	W	3,591			2,324,540	2,923
Development Bank of Japan	4.60	JPY		96,000,000		1,266			192,000,000	2,676

						4,857				5,599
Less: Current portion						(1,266	)			(2,676	)

					W	3,591				2,923


(*1)		The borrowing is related to the exploration of gas field in the Aral Sea in Uzbekistan with Korea National Oil Corporation (“KNOC”) (note 16).

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(d)

Loans from foreign financial institutions as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	Annual Interest Rate (%)		2009						2008
NATIXIS		2.00	EUR	4,125,918		W	7,155			4,600,591		8,171
Less: Current portion			EUR	(636,350	)		(1,104	)		(636,350	)	(1,130	)

						W	6,051					7,041

(e)

Aggregate maturities of long-term debts as of September 30, 2009 are as follows:


							Loans from
					Foreign Currency		Foreign financial
(in millions of Won)	*Debentures ()**		Borrowings		Borrowings		Institution		Total
September 30,
2010	W	—	W	—	W	1,266	W	1,104	W	2,370
2011		800,000		—		—		1,104		801,104
2012		1,423,160		5,459		—		1,104		1,429,723
2013		1,855,660		7,164		—		1,104		1,863,928
Thereafter		1,699,214		55,760		3,591		2,739		1,761,304

	W	5,778,034	W	68,383	W	4,857	W	7,155	W	5,858,429


(*)		The amount includes premium on bond redemption.

14. Accrued Severance Benefits

The changes in accrued severance benefits for the nine-month period ended September 30, 2009 and the year ended December 31, 2008 are as follows:


(in millions of Won)	2009			2008
Estimated severance benefits at the beginning of period	W	851,391			682,686
Provision for severance benefits		(3,875	)		221,748
Payment		(62,340	)		(53,043	)

Estimated severance benefits at the end of period	W	785,176			851,391


Transferred to National Pension Fund		(82	)		(84	)
Deposit for sererance benefits trust		(579,076	)		(590,939	)

Net balance at the end of period	W	206,018			260,368

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

15. Other Current Liabilities

Other current liabilities as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	2009		2008
Other current liabilities
Advances received	W	35,351		25,162
Unearned revenue		2,021		2,472
Others		31,520		9,453

	W	68,892		37,087

16. Commitments and Contingencies

(a)

As of September 30, 2009, contingent liabilities for outstanding guarantees provided by the Company for the repayment of loans of related companies and others are as follows:


(in millions of Won)		2009				2008
Company	Financial Institution	Guaranteed		Won Equivalent		Guaranteed		Won Equivalent
Related companies
POSCO Investment Co., Ltd.	Bank of Tokyo-Mitsubish	USD	—				42,000,000
		CNY	—				29,000,000
	HSBC	CNY	630,000,000	W	616,458		—	W	248,976
		MYR	280,000,000				180,000,000
		USD	346,000,000				100,000,000

Zhangjiagang Pohang Stainless Steel Co., Ltd.	Bank of China and others	USD	—		—		199,925,000		251,406
POSCO-Vietnam Co., Ltd.	The Export-Import Bank	USD	230,000,000		336,792		200,000,000		251,500
	of Korea and others	JPY	4,806,750,000				—

					953,250				751,882

Others
OCI Company LTD.	E1 Co., Ltd.	KRW	320		320		320		320
Zeus (Cayman) Ltd.	Related creditors	JPY	52,795,000,000		696,260		52,795,000,000		735,904
BX STEEL POSCO Cold	Bank of China and	USD	13,800,000		65,877		15,840,000		97,870
Rolled Sheet Co., Ltd.	others	CNY	284,180,000				423,440,000

					762,457				834,094

				W	1,715,707			W	1,585,976

	(b)		As of September 30, 2009, the Company issued five blank promissory notes to Korea Resources Corporation as collateral for borrowings, and issued six blank promissory notes to KNOC as collateral for foreign currency borrowings.

	(c)		The Company entered into a capital lease contract acquiring a ro-ro ship for the exclusive use of transporting plates for W 1,953 million and US$ 11,583 thousand, equivalent to 90 % of fair value of the ship price, to be redeemed over 12 years.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(d)

As of September 30, 2009, the Company acquired certain tools and equipment under operating lease agreements from Macquarie Capital Korea Company Limited and others. The Company’s rent expense with respect to these lease agreements, amounted to W 4,038 million for the nine-month period ended September 30, 2009. Future lease payments under these lease agreements are as follows:


(in millions of Won)
Period	Amount
2009	W	1,266
2010		3,288
2011		1,049

	W	5,603

	(e)		The Company is involved in fourteen lawsuits and claims for alleged damages aggregating to W 14,764 million as of September 30, 2009 which arose in the ordinary course of business. The Company is unable to predict the possible outcome of the above claims. However, in the opinion of management, the foregoing lawsuits and claims will not have a material adverse effect on the Company’s financial position, operating results or cash flows. No provision is recorded in connection with the above lawsuits and claims as of September 30, 2009.

	(f)		The Company entered into long-term contracts to purchase iron ore, coal and nickel and other raw materials. These contracts generally have terms of more than three years and provide for periodic price adjustments to the market price. As of September 30, 2009, 364 million tons of iron ore and 55 million tons of coal remained to be purchased under such long-term contracts.

	(g)		The Company entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia regarding the commitment to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. This agreement provides for periodic price adjustments to market price (Japan JCC), and the ceiling price is applied when the market price exceeds the certain price level provided in the agreement.

	(h)		The Company has a bank overdraft agreements of up to W 300,000 million with Woori Bank and six other banks as of September 30, 2009. In addition, the Company entered into a credit purchase loan agreement with Industrial Bank of Korea and five other banks for credit lines of up to W 280,000 million and short-term borrowing agreement of up to W 700,000 million with Woori Bank and five other banks.

	(i)		As of September 30, 2009, the Company has an agreement with Woori Bank and others to open letters of credit, documents against acceptance and documents against payment amounting to US$ 1,400 million and US$ 500 million in foreign short-term borrowings.

	(j)		The outstanding balance of accounts receivable in foreign currency sold to financial institutions as of September 30, 2009 amounted to US$ 160.4 million for which the Company is contingently liable upon the issuers’ default.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(k)

The Company entered into commitments of foreign currency long-term borrowings which are limited up to the amount of US$ 6.86 million and US$ 3.54 million with KNOC related to the exploration of gas fields in the Aral Sea, Uzbekistan and Namangan-Tergachi, respectively. The repayment obligation depends on the success of the project. The Company is not liable for the repayment of full or part of money borrowed if the project fails and also the Company has agreed to pay certain portion of its profits under certain conditions as defined by borrowing agreement.

17. Derivatives

(a)

Details of derivatives as of September 30, 2009 and December 31, 2008 are as follows:


	Purpose of	Financial
Type of Transaction	Transaction	Institutions	Description of contract
Embedded derivative (*)	Issuing exchangeable bonds	Investee for exchangeable bonds	Exchangeable rights for stock


(*)		The Company applied derivative accounting as exchangeable right to investors related to exchangeable bond issued in August 19, 2008 meets certain criteria of embedded derivatives. Fair values of exchangeable right are W 9,199 million (JPY 659,937,500) as of December 31, 2008 and W 2,862 million (JPY 216,987,450) as of September 30, 2009. This exchangeable right is included in other long-term liabilities.

(b)

Details of the gains (losses) on derivatives, net for the nine-month periods ended September 30, 2009 and 2008 are as follows:


(in millions of Won)	Valuation Gain (Loss)				Transaction Gain (Loss)
Type of Transaction	2009		2008		2009		2008
Currency forward (Swaps)	W	—		—	W	14,177		830
Embedded derivative		6,337		14,196		—		—

	W	6,337		14,196	W	14,177		830

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

18. Stock Appreciation Rights

(a)

The Company granted stock appreciation rights to its executive officers in accordance with the stock appreciation rights plan approved by the Board of Directors. The details of the stock appreciation rights granted are as follows:

1^st Grant

2^nd Grant

3^rd Grant

4^th Grant

5^th Grant

6^th Grant

Total

Before the modifications (*)

Number of shares

498,000 shares

60,000 shares

22,000 shares

141,500 shares

218,600 shares

90,000 shares

1,030,100 shares

Exercise price

W98,400 per share

W135,800 per share

W115,600 per share

W102,900 per share

W151,700 per share

W194,900 per share

After the modifications (*)

Grant date

July 23, 2001

April 27, 2002

September 18, 2002

April 26, 2003

July 23, 2004

April 28, 2005

Exercise price

W98,900 per share

W136,400 per share

W116,100 per share

W102,900 per share

W151,700 per share

W194,900 per share

Number of shares granted

453,576 shares

55,896 shares

20,495 shares

135,897 shares

214,228 shares

90,000 shares

970,092 shares

Number of shares cancelled

19,409 shares

—

19,409 shares

Number of shares exercised

434,167 shares

55,896 shares

20,495 shares

124,417 shares

90,524 shares

62,000 shares

787,499 shares

Number of shares outstanding

—

11,480 shares

123,704 shares

28,000 shares

163,184 shares

Exercise period

July 24, 2003~

April 28, 2004~

Sept. 19, 2004~

April 27, 2005~

July 24, 2006~

April 29, 2007~

July 23, 2008

April 27, 2009

Sept. 18 2009

April 26, 2010

July 23, 2011

April 28, 2012


(*)		The Company modified the number of shares granted under the stock appreciation rights and the exercise price, as presented above (1^st, 2^nd, 3^rd, 4^th and 5^th), in accordance with the resolutions of the Board of Directors on April 26, 2003, October 17, 2003 and October 22, 2004.

(b)

Expense (or income) related to stock appreciation rights granted to executives incurred for the nine-month period ended September 30, 2009 are as follows:


(in millions of Won)	1^st Grant		2^nd Grant			3^rd Grant		4^th Grant		5^th Grant		6^th Grant		Total
Prior periods	W	59,945	W	10,801		W	4,843	W	29,770	W	54,680	W	25,486	W	185,525
Current period		—		(21	)		1,228		1,627		15,108		3,374		21,316

	W	59,945	W	10,780		W	6,071	W	31,397	W	69,788	W	28,860	W	206,841

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

19. Selling and Administration Expenses

Details of selling and administrative expenses for the three-month and nine-month periods ended September 30, 2009 and 2008 are as follows:


	For the three-month period				For the nine-month period
	ended September 30				ended September 30
(in millions of Won)	2009		2008		2009		2008
Selling expenses	W	160,909		199,247		465,578		568,478
Fees and charges		28,191		34,305		83,385		98,344
Salaries and wages		23,848		22,114		71,449		66,642
Advertising		16,674		19,163		50,778		59,559
Research and development		30,405		12,459		40,453		37,118
Depreciation		3,668		3,876		11,177		11,753
Amortization		4,094		3,702		11,824		10,886
Rent		4,697		5,743		13,822		16,331
Other employ benefits		22,410		35,306		54,765		72,503
Provision for severance benefits		37		7,802		3,804		21,141
Supplies		501		807		3,431		3,760
Travel		3,155		3,908		8,696		10,803
Training		3,538		4,416		9,167		13,207
Repairs		5,265		2,694		8,116		7,169
Communications		1,809		1,995		5,541		5,940
Vehicle expenses		1,448		1,514		4,172		4,042
Taxes and public dues		1,356		1,270		3,322		3,665
Entertainment		724		1,113		2,271		3,663
Subscriptions and printing		557		590		1,531		1,559
Utilities		108		261		294		724
Insurances		3,540		2,393		8,422		6,013
Stock compensation expense (note 18)		12,318		10,780		21,316		—
Others		3,655		3,714		12,676		13,248

	W	332,907		379,172		895,990		1,036,548

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

20. Income Taxes

(a)

Income tax expense for the nine-month periods ended September 30, 2009 and 2008 are as follows:


(in millions of Won)	2009			2008
Current income taxes (*)	W	294,757			1,288,515
Deferred income taxes		(15,590	)		(223,932	)
Items charged directly to shareholders’ equity		(115,125	)		168,439

	W	164,042			1,233,022


(*)		Additional tax payments (or tax returns) arising from finalized tax assessment are added or deducted in current income taxes.

(b)

The following table reconciles the expected amount of income tax expense based on statutory rates to the actual amount of taxes recorded by the Company for the nine-month periods ended September 30, 2009 and 2008:


(in millions of Won)	2009			2008
Net income before income tax expense	W	2,060,979			4,958,518
Income tax expense computed at statutory rate		498,740			1,363,569
Adjustments:		(334,698	)		(130,547	)
Tax credit		(200,406	)		(89,923	)
Tax returns (*)		(140,442	)		—
Others, net		6,150			(40,624	)

Income tax expense	W	164,042			1,233,022

Effective rate		7.96	%		24.87	%


(*)		The Company obtained tax refunds amounting to W 144,248 million from the additional tax payments made in 2005, according to the decision of Tax Tribunal, and recognized W 140,442 million as tax returns less the adjusted amount in deferred income tax assets (liabilities).

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(c)

Changes in temporary differences and deferred income taxes for the nine-month period ended September 30, 2009 are as follows:


(in millions of Won)	Accumulated temporary differences									Deferred income tax
	Dec. 31, 2008			*Inc. (dec.) (1)**			September 30, 2009			Dec. 31, 2008			Inc. (dec.)			September 30, 2009
Reserve for special repairs	W	(281,824	)	W	103,266		W	(178,558	)	W	(62,423	)	W	23,039		W	(39,384	)
Reserve for technology developments		(720,000	)		214,220			(505,780	)		(167,016	)		55,744			(111,272	)
Dividend income from related companies		430,688			30,711			461,399			94,751			6,757			101,508
Depreciation expense		(267,736	)		(79,441	)		(347,177	)		(58,569	)		(17,796	)		(76,365	)
Valuation of equity method accounted investments (*2)		(1,778,197	)		(327,617	)		(2,105,814	)		(299,121	)		(69,827	)		(368,948	)
Prepaid expenses		68,751			47,989			116,740			16,182			9,696			25,878
Impairment loss on property, plant and equipment		42,461			(5,936	)		36,525			9,374			(1,321	)		8,053
Gain on foreign currency translateion		622,855			(322,533	)		300,322			137,581			(71,510	)		66,071
Gain on valuation of available-for-sale securities		(393,580	)		(392,293	)		(785,873	)		(86,587	)		(86,305	)		(172,892	)
Loss on valuation of available-for-sale securities		973,348			(144,983	)		828,365			214,137			(31,897	)		182,240
Tax credit		—			—			—			—			199,298			199,298
Others		362,567			(3,552	)		359,015			74,851			(288	)		74,563

	W	(940,667	)	W	(880,169	)	W	(1,820,836	)	W	(126,840	)	W	15,590		W	(111,250	)


(*1)		The adjustments reflect the effect of the finalized tax assessment for the year ended December 31, 2008.

(*2)		As the Company is unlikely to dispose of its investee shares within five years, the income tax effect of W 416,777 million in September 30, 2009 is not recognized as it is not probable that the deferred tax asset will be realized.

(d)

A summary of deferred tax assets and liabilities as of September 30, 2009 are as follows:


(in millions of Won)	Current			Non-current			Total
Deferred tax assets	W	240,462			707,014			947,476
Deferred tax liabilities		(26,488	)		(1,032,238	)		(1,058,726	)

Total	W	213,974			(325,224	)		(111,250	)

(e)

Income tax expense which is directly charged to shareholders’ equity due to changes in valuation of available-for-sale securities for the nine-month period ended September 30, 2009 amounted to W 115,125 million.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

21. Comprehensive Income

(a)

For the nine-month periods ended September 30, 2009 and 2008, comprehensive income are as follows:


(in millions of Won)	2009			2008
Net income	W	1,896,937			3,725,496
Gain (loss) on valuation of available-for-sale securities		537,277			(1,047,112	)
Less: tax effect		(118,202	)		287,956
Changes in capital adjustments arising from equity method accounted investments		7,668			493,753
Less: tax effect		12,917			(114,195	)

Comprehensive income	W	2,336,597			3,345,898

(b)

For the three-month periods ended September 30, 2009 and 2008, comprehensive income are as follows:


(in millions of Won)	2009			2008
Net income	W	1,141,891			1,218,717
Gain (loss) on valuation of available-for-sale securities		242,386			(532,769	)
Less: tax effect		(53,326	)		146,511
Changes in capital adjustments arising from equity method accounted investments		(130,045	)		188,384
Less: tax effect		31,551			(42,111	)

Comprehensive income	W	1,232,457			978,732

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

22. Earnings Per Share

(a)

Basic earnings per share for the nine-month periods ended September 30, 2009 and 2008 were as follows:


(in millions of Won except per share information)	2009		2008
Net income	W	1,896,937		3,725,496
Weighted-average number of common shares outstanding (*)		76,569,916		75,403,165

Basic earnings per share	W	24,774		49,408


(*)		Basic earnings per share is computed by dividing net income allocated to common stock, by the weighted-average number of common shares outstanding for the nine-month periods ended September 30, 2009 and 2008:


	2009		2008
Total number of common shares issued		87,186,835		87,186,835
Weighted-average number of treasury shares		10,616,919		11,783,670

Weighted-average number of common shares outstanding		76,569,916		75,403,165

(b)

Basic earnings per share for for the three-month periods ended September 30, 2009 and 2008 were as follows:


(in millions of Won except per share information)	2009		2008
Net income	W	1,141,891		1,218,717
Weighted-average number of common shares outstanding (*)		76,569,916		75,394,201

Basic earnings per share	W	14,913		16,165


(*)		Basic earnings per share is computed by dividing net income allocated to common stock, by the weighted-average number of common shares outstanding for the three-month periods ended September 30, 2009 and 2008:


	2009		2008
Total number of common shares issued		87,186,835		87,186,835
Weighted-average number of treasury shares		10,616,919		11,792,634

Weighted-average number of common shares outstanding		76,569,916		75,394,201

(c)

Basic earnings per share for the year ended December 31, 2008, for the three-month period ended March 31, 2009 and for the six-month period ended June 30, 2009 were W 58,905, W 4,238 and W 9,861, respectively.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

23. Related Party Transactions

(a)

As of September 30, 2009, the subsidiaries of the Company are as follows:


Domestic (29)		POSCO E & C Co., Ltd., Posteel Co., Ltd., POSCON Co., Ltd., POSCO Coated & Color Steel Co., Ltd., POSCO Machinery & Engineering Co., Ltd., POSDATA Co., Ltd., POSCO Research Institute, Seung Kwang Co., Ltd., POSCO Architecs & Consultants Co., Ltd., POSCO Specialty Steel Co., Ltd., POSCO Machinery Co., Ltd., POSTECH Venture Capital Corp., Postech 2006 Energy Fund , POSCO Refractories & Environment Company Co., Ltd., POSCO Terminal Co., Ltd., POSMATE Co., Ltd., Samjung Packing & Aluminum Co., Ltd., POSCO Power Corp., PHP Co., Ltd., PNR Co., Ltd., Megaasset Co., Ltd ., Daewoo Engineering Company , Metapolis Co., Ltd., POSCORE Co., Ltd., Pohang Fuelcell Power Corp., POSCOAST Co., Ltd., DAIMYUNG TMS.Co., Ltd., POSHIMETAL Co., Ltd., POSCO E&E Co., Ltd.

Foreign (50)		POSCO America Corporation (POSAM), POSCO Australia Pty. Ltd. (POSA), POSCO Canada Limited (POSCAN), POSCAN Elkview Coal Ltd., POSCO Asia Co., Ltd. (POA), VSC POSCO Steel Corp. (VPS), Dalian POSCO-CFM Coated Steel Co., Ltd., POS-Tianjin Coil Center Co., Ltd. (POSCO-CTPC), POSCO-JKPC Co., Ltd., International Business Center Corporation (IBC), POSLILAMA Steel Structure Co., Ltd., Zhangjiagang Pohang Stainless Steel Co., Ltd. (ZPSS), Guangdong Pohang Coated Steel Co., Ltd., POSCO Thailand Bangkok Processing Center Co., Ltd. (POSCO-TBPC), Myanmar-POSCO Steel Co., Ltd., Zhangjiagang POSHA Steel Port Co., Ltd., POSCO-JOPC Co., Ltd., POSCO Investment Co., Ltd. (POSINVEST), POSCO-MKPC SDN. BHD., Qingdao Pohang Stainless Steel Co., Ltd., POSCO Suzhou Automotive Processing Center Co., Ltd. (POSCO-CSPC), POSEC-Hawaii Inc., POS-Qingdao Coil Center Co., Ltd. (POSCO-CQPC), POS-ORE Pty. Ltd., POSCO-China Holding Corp., POSCO-Japan Co., Ltd., POSCO E&C(Zhangjiagang) Engineering & Consulting Co., Ltd, POS-CD Pty. Ltd., POS-GC Pty. Ltd., POSCO-India Pvt. Ltd., POS-India Pune Steel Processing Centre Pvt. Ltd. (POSCO-IPPC), POSCO-JNPC Co., Ltd., POSCO-Foshan Steel Processing Center Co., Ltd. (POSCO-CFPC), POSCO E&C (Beijing) Co., Ltd., POSCO MPC S.A. de C.V. (POSCO-MPPC), Zhanjiagang Pohang Port Co., Ltd., POSCO Vietnam Co., Ltd., POSCO-Mexico S.A. de. Co. Ltd., POSCO-India Delhi Steel Processsing Centre Pvt. Ltd. (POSCO-IDPC), POSCO (Chongqing) Automotive Processing Center Co., Ltd. (POSCO-CCPC), POS-NP Pty. Ltd., POSCO Vietnam Processing Center Co., Ltd. (POSCO-VHPC), Suzhou Poscore Technology Co., Ltd. (POSCO-CORE(SZ)), POSCO-JYPC Co., Ltd., POSCO Malaysia SDN. BHD., POS-Minerals Corporation, POSCO (Wuhu) Automotive Processing Center Co., Ltd. (POSCO-CWPC), &TV Communications Inc., POSCO Phillippine Manila Processing Center Inc. (POSCO-PMPC), POSCO VST Co., Ltd.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(b)

Significant transactions, which occurred in the ordinary course of business, with related companies for the nine-month periods ended September 30, 2009 and 2008, and the related account balances as of September 30, 2009 and December 31, 2008 are as follows:


(in millions of Won)	*Sales and others (1)**				*Purchase and others (1)**				*Receivables (2)**				*Payables (2)**
	2009		2008		2009		2008		2009		2008		2009		2008
Subsidiaries
POSCO E&C Co., Ltd.	W	3,675	W	11,917	W	1,506,199	W	831,946	W	90	W	814	W	177,533	W	249,792
Posteel Co., Ltd.		879,897		1,034,125		99,169		146,192		112,502		220,713		6,440		21,651
POSCON Co., Ltd.		74		79		165,821		162,822		1		5		23,222		62,957
Pohang Coated & Color Steel Co., Ltd.		349,651		447,357		962		1,579		98,510		48,785		173		71
POSCO Machinery & Engineering Co., Ltd.		1,486		1,344		124,531		113,746		1		2,665		11,246		25,387
POSDATA Co., Ltd.		863		1,330		131,862		137,094		—		1		22,003		20,311
POSCO Research Institute		—		2		15,448		14,165		—		54		1,347		3,780
POSCO Architecs & Consultants Co., Ltd.		254		731		27,111		20,861		—		—		1,994		5,470
POSCO Specialty Steel Co., Ltd.		177		2,021		3,289		18,651		161		1,843		2,007		4,463
POSCO Machinery Co., Ltd.		8,816		10,659		59,505		50,789		—		2,188		3,422		28,517
POSMATE Co., Ltd.		901		1,177		27,321		27,720		—		246		3,217		4,763
POSCO Refractories & Environment Company Co., Ltd		67,043		29,376		338,940		223,101		6,765		19,137		59,735		57,791
Samjung Packing & Aluminum Co., Ltd.		12,692		17,774		150,277		190,961		2,601		2,578		24,125		17,422
POSCORE Co., Ltd.		94,473		89,471		64		—		15,315		20,330		6		—
POSCO America Corporation		114,220		97,356		—		88		3,904		25		—		405
POSCO Australia Pty. Ltd.		6,864		22,619		—		—		528		18		—		—
POSCO Canada Limited		—		20		70,835		142,864		—		21		9,245		—
POSCO Asia Co., Ltd.		849,733		775,266		65,295		158,350		24,500		28,301		1,513		2,978
POSCO-JKPC Co., Ltd.		20,667		24,775		—		—		851		2,560		—		—
POSCO Thailand BangKok Processing Center Co., Ltd.		46,233		65,586		5		29		1,398		—		—		—
Qingdao Pohang Stainless Steel Co., Ltd.		160,560		68,826		—		—		2,681		4,804		—		—
POSCO-Japan Co., Ltd.		463,662		756,987		23,724		11,004		22,534		21,700		7,040		1,104
POS-India Pune Steel Processing Centre Pvt. Ltd.		58,877		62,391		—		—		1,349		4,019		—		—
POSCO-Mexico Co., Ltd		62,779		—		—		—		304		—		—		—
POSCO-Malaysia SDN. BHD.		36,539		32,287		—		—		777		—		—		—
Others		345,691		208,310		18,129		8,389		36,963		4,708		7,152		1,092

		3,585,827		3,761,786		2,828,487		2,260,351		331,735		385,515		361,420		507,954

Equity method investees
eNtoB Corporation		—		—		154,250		191,691		—		—		—		6,016
SNNC Co., Ltd.		307		1,855		244,392		—		119		19		15,935		1,926
KOBRASCO		—		—		2,857		60,883		—		4,115		—		—
Poschrome(Proprietary) Limited		—		98		32,590		82,124		—		—		—		—
USS — POSCO Industries		162,659		301,516		56		—		8		—		—		—
Others		18,926		16,527		90		—		243		1,825		—		—

		181,892		319,996		434,235		334,698		370		5,959		15,935		7,942


Total	W	3,767,719	W	4,081,782	W	3,262,722	W	2,595,049	W	332,105	W	391,474	W	377,355	W	515,896


(*1)		Sales and others include sales, non-operating income and others; purchases and others include purchases, acquisition of property, plant and equipment, overhead expenses and others.

(*2)		Receivables include trade accounts and notes receivable and other accounts and notes receivable; payables include trade accounts and notes payable, other accounts payable and others.

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

(c)

For the nine-month periods ended September 30, 2009 and 2008, details of compensation to key management officers are as follows:


(in millions of Won)	2009		2008
Salaries	W	8,648		8,025
Severance benefits		4,714		3,276
Management achievement awards		10,660		10,628

Total	W	24,022		21,929

Key management officers include directors (including non-executive directors) and internal audit officer who have significant influence and responsibilities in the Company’s business and operations. Other than the compensation which is described above, the Company granted stock appreciation rights to its key management officers. The Company recognized expense related to stock appreciation rights which were increased by W 21,316 million, and decreased by W 34,372 million for the nine-month periods ended September 30, 2009 and 2008, respectively (note 18).

24. Segment Information

The Company has main plants in Pohang and in Gwangyang in the Republic of Korea. Sales of the plants for the nine-month periods ended September 30, 2009 and 2008 were as follows:


(in millions of Won)	2009		2008
Pohang	W	11,267,283		12,211,140
Gwangyang		8,326,593		10,083,763
Others		71,937		42,215

Total	W	19,665,813		22,337,118

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

25. Cost of goods sold

Details of cost of goods sold for the three-month and nine-month periods ended September 30, 2009 and 2008 are as follows:


	For the three-month periods						For the nine-month periods
	ended September 30						ended September 30
(in millions of Won)	2009			2008			2009			2008
Finished goods, semi-finished goods and by-product
Beginning balance of inventories	W	1,494,965			1,772,251			2,749,541			1,359,025
Cost of goods manufactured		5,374,410			6,718,862			15,724,177			16,802,125
Overhead variance		(100,219	)		71,050			(17,016	)		99,159
Refund of customs		(6,564	)		(2,709	)		(11,684	)		(8,253	)
Ending balance of inventories		(1,274,233	)		(2,118,677	)		(1,274,233	)		(2,118,677	)

		5,488,359			6,440,777			17,170,785			16,133,379

Others		11,495			9,699			37,820			24,737

Total	W	5,499,854			6,450,476			17,208,605			16,158,116

POSCO
Notes to Non-Consolidated Financial Statements
September 30, 2009
(Unaudited)

26. The Company’s plan and status for applying K-IFRS

The Company plans to prepare its financial statements under K-IFRS from 2011. To manage all the things accompanied with adoption of K-IFRS, the Company has organized a separate task force, and it has analyzed the impact of the adoption of K-IFRS and has been on the process of modification of system. Also, the Company has trained persons in charge of adoption of K-IFRS in POSCO and its subsidiaries and it is reporting the results of its operation to the audit committee and management group periodically. Details of action plans and current status for the preparation of K-IFRS as of September 30, 2009 are as follows:


		Current status for the preparation
		of K-IFRS as of September 30,
Major activities	Action Plans	2009
Analysis of the impact on adoption of K-IFRS and managing the separate task force for the adoption of K-IFRS	Preparation in adopting K-IFRS by managing the separate task force for the adoption of K-IFRS	1) Setting up separate task force for the adoption of K-IFRS in July, 2008 2) Completion of first phase of K- IFRS consulting project provided by the accounting firm from August, 2008 to March, 2009 ( Analysis of the impact on adoption of K-IFRS and creating Group GAAP) 3) Performing second phase of K- IFRS consulting project provided by the accounting firm from April, 2009 up to now (Design stand-alone financial closing process with respect to GAAP differences)

Train persons in charge of accounting and related system	Obtaining essential technical knowledge for the adoption of K- IFRS by the end of 2009	1) Training persons in charge at working level of the Company and its subsidiaries regarding the impact of adoption of K-IFRS and reporting to audit committee and management group from July, 2008 up to now

Modification of system	Modification of the stand-alone financial closing system by the end of 2009 for application of K-IFRS	1) Modifying the stand-alone financial closing system as of September 31, 2009

27. Subsequent Events

On October 16, 2009, the Board of Directors decided to dispose 462,962 treasury shares worth 250,000 million to Kookmin Bank to execute equity swap with Kookmin Bank.



Dong-Hee Lee
President and Representative Director POSCO
1 Koedong-dong, Pohang-si, Kyongsangbuk-do, Korea
Telephone: +82-54-220-0114



Young-Hoon Lee
Senior Vice President
POSCO
Telephone: +82-2-3457-0114


I.		Overview

II.		Business

III.		Financial Statements

IV.		Corporate Governance and Company Affiliates


•		Dividend per share includes an interim dividend

		The interim Dividend of the 2009 Fiscal Year: KRW 114,855 million


	Page
Independent Accountants’ Review Report		1

Non-Consolidated Financial Statements

Non-Consolidated Statements of Financial Position		3

Non-Consolidated Statements of Income		5

Non-Consolidated Statements of Changes in Equity		6

Non-Consolidated Statements of Cash Flows		7

Notes to the Non-Consolidated Financial Statements		9