South Korea Launches Major Support Program for Steel Industry

South Korea Launches Major Support Program for Steel Industry

The South Korean government has unveiled a comprehensive package to support the steel sector, amid global overcapacity and rising trade protectionism, according to The Korea Times.

The Ministry of Trade, Industry, and Energy stated that the government will increase financial assistance, stimulate innovation, and promote the transition to high value-added steel production.

Key elements of the plan include a 400 billion won ($278 million) guarantee program to support steel exports, alongside 150 billion won for companies working with steel, aluminum, and copper products. The fund will be jointly financed by POSCO Group, Industrial Bank of Korea, and Korea Trade Insurance Corp.

The program enables companies to access preferential loans with reduced interest rates and extended repayment terms. The government will also continue negotiations with key trading partners to lift or ease restrictive measures, such as the US 50% steel import tariff and new EU safeguard mechanisms.

From 2026, South Korea will implement mandatory quality certification for steel imports and intensify efforts against dumping practices.
As part of sector modernization, approximately 200 billion won will be allocated to R&D in special carbon steels and AI-based technologies.

The government is also prioritizing the green transition, promoting the development of hydrogen-based steel production technologies to enhance competitiveness and reduce CO₂ emissions.

Additionally, under a trade agreement with the US, the US tariff on South Korean imports will be reduced from 25% to 15%. South Korea has committed to invest $350 billion in the US, including $150 billion in joint shipbuilding projects and $200 billion in microchips, nuclear energy, batteries, and biotechnology. The country will also purchase $100 billion in American energy resources, including LNG, LPG, and oil, aligning with typical import volumes.