Bipartisan lawmakers back act to strengthen Korea's steel industry amid rising global challenges
Published: 01 Aug. 2025, 18:29
Updated: 01 Aug. 2025, 18:51
![Steel products are stacked at Pyeongtaek Port in Gyeonggi on Aug. 1. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/08/01/24159b9d-5cc6-4d86-983d-594e8e6e021a.jpg)
Steel products are stacked at Pyeongtaek Port in Gyeonggi on Aug. 1. [NEWS1]
A bipartisan group of over 100 lawmakers is backing legislation to support Korea’s steel industry amid growing threats from the United States’ high tariffs and an influx of cheap Chinese steel.
Democratic Party Rep. Eoh Kiy-ku and People Power Party Rep. Lee Sang-hwi — co-heads of the National Assembly’s Steel Forum — will introduce the “Special Act to Strengthen Steel Industry Competitiveness and Promote Green Steel Technology Transition,” nicknamed the “K-Steel Act,” on Aug. 4.
As of Wednesday, 96 lawmakers had pledged to co-sponsor the bill, with the goal of gathering more than 100 signatures across party lines to bolster the proposal.
Countries around the world are bolstering their steel industries in response to U.S.-led protectionism. The United States pursued the Steel Modernization Act last year to revive its steel industry, while the European Union (EU) unveiled the Steel and Metals Action Plan earlier this year to promote decarbonization and global competitiveness.
Korea’s bipartisan push for the K-Steel Act reflects a shared understanding of the need for comprehensive policy support to keep pace with this global trend.
The bill calls for the government to establish mid- to long-term plans to strengthen steel competitiveness and take the lead in implementing them. A special committee headed by the president would be formed to devise five-year basic plans and annual action plans.
The bill also includes provisions for financial and tax support. The central and local governments would back corporate efforts in research and development for carbon-neutral technologies and equipment modernization.
![U.S. President Donald Trump walks with workers as he tours U.S. Steel Corporation's Mon Valley Works-Irvin plant, Friday, May 30, 2025, in West Mifflin, Pa. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/08/01/7484fad1-4d3b-45ee-befb-0b64844412ab.jpg)
U.S. President Donald Trump walks with workers as he tours U.S. Steel Corporation's Mon Valley Works-Irvin plant, Friday, May 30, 2025, in West Mifflin, Pa. [AP/YONHAP]
To prepare the bill, the Steel Forum held a policy debate in April and consulted with domestic steelmakers, the Korea Iron & Steel Association and relevant ministries.
“Just as the 1970 Steel Industry Promotion Act laid the foundation for Korea’s industrialization, the K-Steel Act will serve as a breakwater for the steel sector as it faces widespread crises,” Rep. Eoh said.
The external and internal environment surrounding steel — widely considered the foundation of industry — is increasingly challenging, particularly in trade. The United States imposed a 25 percent tariff on imported steel in March and raised it to 50 percent in June.
According to the Korea International Trade Association, the United States was Korea’s largest steel export market last year, accounting for $4.35 billion, or 13.1 percent, of Korea’s $33.29 billion in steel exports. Posco sends about 10 percent of its exports to the United States, while Hyundai Steel and SeAH Steel ship 33 percent and 36.5 percent, respectively, to the market.
Lee Jae-yoon, head of the Korea Institute for Industrial Economics and Trade’s carbon-neutral industry transition division, noted that Japan, which has smaller U.S. exports and plans for local production, and the EU, which is building an internal supply base under its action plan, are relatively insulated from the tariff impact.
“Policy support is urgently needed for Korean steelmakers whose export markets are in flux,” Lee said.
![Export containers are stacked at Pyeongtaek Port in Gyeonggi on Aug. 1. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/08/01/97ede3ed-9d08-4eb4-8d4f-803868f98013.jpg)
Export containers are stacked at Pyeongtaek Port in Gyeonggi on Aug. 1. [NEWS1]
Although the United States recently lowered auto tariffs to 15 percent for Japan and the EU after trade negotiations, it is maintaining the 50 percent steel tariff. The White House indicated the EU may discuss supply chain issues in the future, but for now, the higher tariff remains in place. Observers say Korea, which is in the final stages of trade talks, is unlikely to avoid the 50 percent duty.
U.S. domestic pressure is also mounting. On July 25, the American Iron and Steel Institute sent a letter to U.S. President Trump warning that countries like Japan and Korea are calling for tariff exemptions rather than addressing global steel overcapacity.
“There is no basis for negotiating away the steel tariffs as part of these reciprocal tariff negotiations,” the letter read.
“The Trump administration views steel — unlike finished goods like automobiles — as a national security industry and will likely resist easing tariffs,” said Sohn Young-wook, CEO of the Institute for Steel Industry Analysis.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE SU-JEONG [[email protected]]
with the Korea JoongAng Daily
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