Global steel industry has grown very rapidly through economic growth of BRICs- countries since the 2000’s. To get a competitive advantage, the paradigm of steel industry is shifting toward new direction such as diminishing barriers in trade and appearance of huge steel maker through M&A. In addition, global steel mills are focusing on producing higher value added products and developing new production process to lower the production costs and to meet the needs of environment issues. The purpose of this study is to describe the cause and consequences of FINEX developed by POSCO. FINEX is the first commercialized technology among new iron ore reduction processes. To achieve the study purpose, the history and development process of FINEX are reviewed, then the success factors of FINEX are analyzed. In addition, the performance and future direction of FINEX are explained. Finally, managerial implications of this technology are also discussed.