POSCO Group Chairman Chang In-hwa, right, and Korea Federation of SMEs Chairman Kim Ki-mun toast during their meeting at the federation's headquarters in Seoul, Wednesday. Yonhap

POSCO Group Chairman Chang In-hwa visited the Korea Federation of SMEs (K-Biz), Wednesday, surprising those who remember K-Biz Chairman Kim Ki-mun's criticism leveled at the steelmaker two years ago.

In March 2022, when the heads of Korea's six largest business associations met with Yoon Suk Yeol, who was the president-elect at that time, Kim said that POSCO had posted record earnings in 2021 after raising its product prices five times, unlike Samsung that had bought products from small- and medium-sized enterprises (SMEs) at higher prices after a sharp rise in raw material prices.

Prior to meeting Yoon, Kim publicly criticized the steelmaker for its pricing practices during an interview with a local news outlet and at a subsequent press conference.

However, his remarks in front of the president-elect baffled POSCO, raising concerns over the likelihood of the Yoon administration's intervention in the privatized company's management through the National Pension Service, the largest shareholder of POSCO Holdings.

Back then, steelmaking industry insiders explained that the soaring global price of iron ore had forced POSCO to raise its product prices.

Korea Federation of SMEs Chairman Kim Ki-mun, center, stands next to Korea Enterprises Federation Chairman Sohn Kyung-shik, right, as he shakes hands with then President-elect Yoon Suk Yeol, during his meeting with the heads of Korea's six largest business associations at the presidential transition committe's office in Seoul in this March 21, 2022 photo. Newsis

However, concerns about government intervention in the company's management became a reality last year when then POSCO Group Chairman Choi Jeong-woo faced an investigation for alleged irregularities.

Additionally, earlier this year, the company decided to replace Choi, who had been appointed chairman in 2018 during the presidency of Moon Jae-in.

After Chang took office in March, POSCO Group apparently restored its relations with the incumbent president.

Unlike his predecessor, who was excluded from presidential events, Chang was allowed to join Yoon's meeting in May with businesspeople from SMEs and senior executives of Samsung, LG, Hanwha, HD Hyundai, and Shinsegae at the presidential office.

In June, Chang joined the business delegation accompanying Yoon on his state visit to Kazakhstan, where the POSCO Group chief had the opportunity to talk with the K-Biz chairman about their cooperation.

A month later, Chang chose K-Biz as the first business association to visit since his appointment, becoming the first POSCO Group chairman to visit the federation in 11 years.

"POSCO has led the win-win growth of large and small companies, but it came into conflict with SMEs over its unilateral price hikes after the COVID-19 pandemic and reduced communication with us," the K-Biz chairman said.

"I hope both institutions work together to overcome crises facing the Korean economy."

Chang said that POSCO Group has continuously made various efforts to support SMEs and enhance industrial ecosystems.

"I will boost communication between the two institutions and enhance cooperation, in order to find the way for win-win growth," he said.

POSCO Group and the K-Biz agreed to cooperate in 2008 to support local SMEs.

K-Biz said there is increasing demand for enhanced cooperation to address the global supply chain crisis, meet climate goals, comply with industrial accident laws, and bolster the competitiveness of the Korean steelmaking industry.