South Korea has announced a $54 billion support package for the steel industry

South Korea has announced a large-scale support program for its steel industry to mitigate the effects of the conflict in the Middle East, according to SteelRadar.

The support, announced by the Financial Services Commission (FSC), will total 80 trillion won (nearly $54 billion). Of this amount, 25.6 trillion won will be provided through state-owned banks and state-owned credit institutions. Private financial institutions are expected to provide over 53 trillion won in credit support. Officials noted that the scope and scale of the program may be expanded depending on needs.

The government also announced new measures to ease financial pressure on the bond market. Additionally, through the 1 trillion won Corporate Restructuring Innovation Fund, which is set to begin operations as early as April, investments will be made in the restructuring of companies operating in sectors such as steel, petrochemicals, semiconductors, automotive, displays, and rechargeable batteries.

FSC Chairman Lee Eo-won noted during a meeting attended by industry representatives and financial institutions that the steel industry is facing rising logistics costs due to the crisis in the Middle East, concerns about supply chain disruptions, and additional pressure from tariff policies in the U.S. and the EU. Problems in the steel industry may not be limited to this sector alone but could spread to the entire economy through related sectors.

As a reminder, South Korea launched a large-scale support program for the steel industry last November. The plan includes a 400 billion won ($278 million) guarantee program to support steel exports, as well as 150 billion won for companies working with steel, aluminum, and copper products. Special attention is being paid to the “green transition.”