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Gov't discusses response to EU's carbon tax policy with steel industry

Published: 08 Jan. 2026, 12:08 Updated: 08 Jan. 2026, 14:39

The Ministry of Trade, Industry and Resources building inside the government complex in Sejong is seen on Jan. 6. [YONHAP]

The Ministry of Trade, Industry and Resources held a meeting with the steel industry on Thursday to discuss response measures to the European Union's carbon tax policy launched this year, officials said.

The EU officially began implementation of the Carbon Border Adjustment Mechanism (CBAM) on Jan. 1 to levy tax on carbon-intensive goods imported to the region, such as steel, aluminum, cement and fertilizers. Starting in 2028, the EU plans to expand its carbon border levy to other items, including auto parts, refrigerators and washing machines.

In Thursday's meeting, major steelmakers here said they have preemptively devised response measures to ensure smooth compliance with the CBAM, noting they can receive carbon emission verification through domestic institutions recognized by the EU.

But they asked the government to continue efforts to further ease uncertainties related to the EU's new policy, as it is expected to keep evolving.

"As the EU plans to pursue additional law revisions [for CBAM] by the end of this year, we will use this opportunity to continue consultations with the EU to address the situation of Korean industries," said Lee Jae-keun, director general for new trade strategy and policy at the ministry.

Yonhap