The 23rd Iron Day Commemoration Ceremony
[Asia Economy Sejong=Reporter Dongwoo Lee] The Korea Iron & Steel Association, POSCO, Hyundai Steel, and IBK Industrial Bank of Korea recently decided to establish a 150 billion KRW-scale 'Win-Win Fund' to support small and medium-sized steel companies facing liquidity difficulties due to rising raw material prices.
The Ministry of Trade, Industry and Energy and the Korea Iron & Steel Association announced on the 9th that they held a ceremony to sign an agreement to establish the Win-Win Fund during the 23rd Steel Day commemorative event held at the POSCO Center in Gangnam-gu, Seoul.
This fund will be used as working capital for ESG (Environmental, Social, and Governance) management of small and medium steel companies. Companies that are recommended by fund-contributing companies or the association and submit ESG management plans can receive loans at a preferential interest rate reduced by 1.43 percentage points compared to market rates.
A portion of the total fund will be allocated to companies that do not have cooperative relationships with the contributing large corporations, and non-cooperative companies can receive support through recommendations from the Steel Association. Compared to the 100 billion KRW 'Steel Win-Win Cooperation Fund' established in 2020, this fund expands interest rate reductions and loan limits, and it is expected that about 200 steel-related companies will receive practical assistance through the fund.
Jang Young-jin, Vice Minister of the Ministry of Trade, Industry and Energy, said, "To overcome challenging domestic and international conditions such as global supply chain restructuring and rising raw material prices, an economic structure where the private sector leads and the government supports is necessary," adding, "The government will become a partner of the steel industry and actively support resolving industry difficulties."
He also urged securing raw materials for supply chain stabilization, strengthening win-win cooperation with domestic demand industries such as automobile and shipbuilding, and taking preemptive measures after the supercycle (super boom).
Meanwhile, Steel Day commemorates June 9, 1973, when the first molten iron was produced at POSCO Pohang Steelworks, Korea's first blast furnace, and related events have been held since 2000.
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