Seoul Semiconductor makes products used in Lighting in mobile phones

POSCO, Korea's biggest steelmaker, will buy a 1 percent stake in Seoul Semiconductor Co., adding to efforts to grow outside of its metal production business.

"The plan is in line with our efforts to secure a new engine for growth," said Choi Youn-joung, a POSCO spokeswoman. "We will cooperate on developing light-emitting diode technologies." Seoul Semiconductor makes products used in Lighting in mobile phones and televisions.

POSCO is investing in gas plants and studying a bid for trading company Daewoo International Corp. as Chief Executive Officer Chung Joon-yang taps cash generated from rising earnings. Global revenue of the light-emitting diode market will increase 22 percent to $9.1 billion next year, according to researcher iSuppli Corp. last week.