Samsung Electronics and POSCO ― the nation’s two leading players in the electronic and steel sectors, respectively ― will team up to develop new materials specially designed to be used for electronic home appliances, company officials said Wednesday.

Yoon Boo-keun, Samsung Electronics’ president of TVs and appliances, and POSCO vice president Kwon Oh-joon are scheduled to attend the signing event of a memorandum of understanding held at Samsung’s headquarters in southern Seoul on Friday.

A POSCO spokesperson, however, denied an earlier report that the new business agreement will be focusing on the development of steel sheets used for electronic home appliances such as refrigerators, washing machines and ovens.

“The MOU is aimed at carrying out joint research and development activities on new materials that are specialized for electronic home appliances, including nonferrous metals as well as steels. Nothing specific has been discussed yet,” said the official.

Through the new partnership, Samsung, one of POSCO’s key clients, is expected to have benefits by being involved directly in the development of materials they need to produce home appliance products.

As for POSCO, the agreement will pave the way for the world’s fourth-largest steel maker to expand presence in the new material field, which is gaining attention due to the market potential for high-value materials such as magnesium, lithium and titanium.

“The partnership with Samsung comes at a time when POSCO is seeking a new growth engine in the new material field beyond its traditional steel-making business. It would give a win-win effect to both companies,” the official said.

Even though the steel giant has signed MOUs for possible partnerships in steel development, it is the first time for POSCO to sign an agreement in the field of electronic products.

It is also the first time for POSCO and Samsung to have signed a business agreement amid their strengthened partnership in recent years. The POSCO official declined to reveal the total trade volume between the two, citing company policy.

By Lee Ji-yoon (jylee@heraldcorp.com)