South Korea to offer export guarantee program for steel industry amid US tariffs

The South Korean government will introduce a new export guarantee program for the steel industry amid US tariffs. This was announced by the country’s Minister of Industry Kim Jong-kwan, according to The Korea Times.

The official made the announcement late last week during a meeting in Pohang with the heads of the country’s major steel companies, including POSCO.

“The government, steel producers, financial institutions, and lenders will work together to create a guaranteed scheme to strengthen the steel industry’s supply chains,” Kim said.

The minister explained that the measure is intended to provide financial support of approximately 400 billion won ($290 million).

Kim promised to continue negotiations with the US on reducing tariffs, introduce further measures to support the industry, and intensify efforts to protect against unfair imports. The government also seeks to ease economic tensions in regions caused by difficulties in the steel industry.

In addition, South Korea’s Ministry of Trade, Industry, and Energy held a meeting with private companies and trade agencies to discuss the country’s response to the potential expansion of US tariffs on steel and aluminum derivatives. In August, the Trump administration already imposed 50% tariffs on 407 new commodity codes.

The ministry held the meeting to assess the potential impact of Washington’s move and discuss measures to support Korean industry. In particular, the ministry promised to help companies submit written comments to the Trump administration against the expansion of tariffs and to provide advice on the export of affected goods.

It should be recalled that this summer, a bipartisan bill was introduced in the country to help local steel producers affected by the 50% US tariff and the sharp increase in imports of cheap Chinese products. The K-Steel Act, announced by 106 lawmakers, outlines a long-term industrial strategy that views steel as the foundation of national security and economic stability.