South Korea will protect its steel industry from global pressure

South Korea is seeking to protect its steel industry from growing global pressure, according to The Korea Herald.

A bipartisan bill has been introduced in the country aimed at helping local steel producers, who have been hit hard by the 50% US tariff and a sharp increase in imports of cheap Chinese products.

The K-Steel Act, announced by 106 lawmakers from both the ruling and opposition parties, outlines a long-term industrial strategy that views steel as the foundation of national security and economic stability.

The bill calls for the creation of a presidential committee tasked with developing five-year master plans and annual roadmaps for the sector.

It also includes financial incentives to support the industry’s green transition (subsidies, low-interest loans, tax breaks, and production cost support for companies investing in hydrogen-based and other low-emission technologies).

“Green steel zones” are proposed – designated areas where permitting and regulatory procedures will be simplified.

The document provides for stronger protective measures – stricter rules of origin, restrictions on imports of low-quality steel, and expanded government powers to combat unfair trade practices.

The bill proposes financial and regulatory support during the restructuring of the metallurgical industry, including temporary exemptions from antitrust legislation for mergers.

According to lawmakers, the country’s metallurgical sector is currently facing an unprecedented crisis, faced with a global drive for carbon neutrality, a flood of cheap Chinese imports, and high tariffs from key trading partners.

Despite the recent trade agreement with the US, 50% tariffs on Korean steel remain in place. At the same time, South Korean steelmakers will face additional costs with the final implementation of the European CBAM in 2026 if they do not decarbonize quickly.

The reduction in the steel base could spread to the country’s broader industrial ecosystem, threatening other sectors, from shipbuilding to electric vehicle development.

Thanks to bipartisan support, lawmakers plan to quickly pass the bill and, if necessary, additional legislation.

The US and South Korea have reached a trade agreement that provides for a reduction in US tariffs on imports from that country to 15% instead of the previously promised 25%.

South Korea has agreed to invest $350 billion in the United States, including $150 billion in joint shipbuilding projects, and another $200 billion in microchips, nuclear energy, batteries, and biotechnology. The country will also purchase $100 billion worth of American energy, including LNG, LPG, and oil. The government emphasized that this corresponds to typical import volumes