South Korea Steel Industry Support: Financial Aid and Export Growth
The South Korean government announced a major package to support the steel industry amid global overcapacity and trade protectionism. As a result, steel exporters can access 400 billion won ($278 million) in guarantees to improve competitiveness. The initiative also allocates 150 billion won for companies producing steel, aluminum, and copper products. Steel giant POSCO, Industrial Bank of Korea, and Korea Trade Insurance Corp will jointly finance the fund.
The program enables companies to secure preferential loans with lower interest rates and longer repayment terms. Meanwhile, the government negotiates with trading partners to ease restrictive tariffs, including the US 50% steel import tariff and new EU safeguard measures. Additionally, South Korea will introduce mandatory steel import quality certification from 2026 and strengthen anti-dumping measures.
Green Steel Transition and R&D Investment
South Korea focuses on modernization and sustainability in steel production. Approximately 200 billion won will fund R&D in special carbon steels and AI-driven manufacturing technologies. Hydrogen-based steel production technologies will also receive government support, reducing CO2 emissions and enhancing global competitiveness.
The US-South Korea trade agreement lowers US tariffs on South Korean steel imports to 15%. The country will invest $350 billion in the US, spanning shipbuilding, microchips, nuclear energy, batteries, and biotechnology. South Korea will also import $100 billion of American energy resources, including LNG, LPG, and oil, reinforcing trade relations while supporting domestic industry growth.
SuperMetalPrice Commentary:
South Korea’s comprehensive steel support package strengthens both exports and domestic competitiveness. By combining financial assistance, modernization programs, and green technology adoption, the government ensures the industry can navigate global trade challenges. Investors should monitor POSCO and other key steelmakers as hydrogen-based production and AI-driven processes reshape the market. These policies also position South Korea as a leading supplier in high value-added and sustainable steel products.
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