Korea to sharpen policy edge to bolster steel sector amid trade barriers, dumping

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Korea to sharpen policy edge to bolster steel sector amid trade barriers, dumping

Published: 19 Mar. 2025, 16:35 Updated: 19 Mar. 2025, 19:26

SHIN HA-NEE
[email protected]

Audio report: written by reporters, read by AI

Acting President Choi Sang-mok speaks during a ministerial meeting on current affairs held at the government complex in central Seoul on March 19. [MINISTRY OF ECONOMY AND FINANCE]

Korea will bolster antidumping measures against cheap Chinese steel and enhance support for domestic exporters as the country’s steelmaking industry continues to struggle with rising trade barriers and oversupply.

The move comes as Seoul navigates mounting trade uncertainties following U.S. President Donald Trump’s implementation of a 25 percent tariff on all steel and aluminum imports starting March 12, revoking Korea’s previous annual duty-free steel quota. The European Union's Carbon Border Adjustment Mechanism, which levies additional duties based on carbon emissions, is also set to come into full effect next year.

“The impact of the U.S. administration’s tariff policies has begun to materialize,” said acting President Choi Sang-mok in his remarks during a ministerial meeting on current affairs held at the government complex in central Seoul on Wednesday.

“Due to the significant uncertainty surrounding the details [of U.S. tariff policies] and major economies’ potential countermeasures, it is difficult to predict the extent of the policies’ implications on our companies,” Choi noted.

The acting president promised to remain in close communication with the industry, adding that the government will also accelerate its efforts to improve regulations and foster new sectors to drive growth.

The Ministry of Trade, Industry and Energy released its three-pillar plan to address challenges facing the steel sector: easing short-term trade uncertainties, cracking down on unfair practices and preparing for a long-term industrial shift.

The ministry plans to actively engage with government officials from the United States and the EU as global protectionism intensifies.

“We will put all our efforts into minimizing trade risks,” said Industry Minister Ahn Duk-geun during Wednesday’s meeting. “We will continue to request a tariff measure exemption from the United States, and promptly respond to higher trade barriers imposed by key partners.”

The Industry Ministry said Wednesday that Ahn plans to head to Washington on Thursday for a two-day trip to meet with U.S. Secretary of Commerce Howard Lutnick and Secretary of Energy Chris Wright, coming quickly on the heels of the minister's visit in February.

Ahn will request “non-discriminatory” treatment of Korea from the White House, and discuss potential cooperation to bolster energy securities.

The government will also expand a communication channel established at the Korea Trade-Investment Promotion Agency to help steel and aluminum exporters, in particular, by providing comprehensive support programs including tariff and legal consultations.

The Ministry of SMEs and Startups will conduct a survey in March to assess the potential implications of U.S. tariffs on small- and mid-sized enterprises, and the findings will be used to devise support measures.

Moreover, the government aims to tighten its regulations on dumping to prevent low-cost steel suppliers, such as those from China, from avoiding antidumping duties through circumvention. The plan includes expanding the definition of circumvention dumping to cover cases where products are rerouted through a third-party country, as the current rule only applies to cases where suppliers modify products within their country of origin. Steel suppliers will also be required to submit a mill test certificate verifying the production process and the country of origin.

A Posco employee works at its Pohang steel plant in North Gyeongsang. [YONHAP]

A long-term plan to foster the development of low-carbon, high-value-added steel products in response to competition from China’s low-cost steel products will be announced later this year.

During the ministerial meeting, the acting president also announced the latest plans to provide 75.4 trillion won ($51.9 billion) in policy loans for growth sectors such as AI, chips and EV batteries, and to curb recent housing price increases by mandating transaction approvals in some of Seoul’s most affluent neighborhoods.

“Property prices in some areas in Seoul have been rising steeply recently,” said Choi. “The government will utilize every tool available, such as real estate regulations and financial measures, to curb housing price escalation.”

Updated, March 19: Added information about industry minister's trip to the United States.

BY SHIN HA-NEE [[email protected]]