POSCO wrapped up a deal to sell its specialty steel-making arm POSCO Specialty Steel to SeAH Group by selling its 72 percent stake, the steelmaker said in a regulatory filing.

With the end of the deal, SeAH will advance as the largest specialty steel manufacturer in Korea.

With the acquisition, SeAH will be able to push up its annual production capacity from 3 million tons to 4 million tons.

POSCO has pushed the deal since August when it announced a plan to sell its affiliate as part of its business portfolio reorganization efforts.

The entry of Hyundai Steel, a steel arm of Hyundai Motor Group, into the specialty steel-making business drove the deal, industry sources said.

POSCO added SeAH agreed on employment security for all workers that will be affected by the deal.

(jyseo@heraldcorp.com)