Steel Industry Crisis, Pohang-Gwangyang-Dangjin Unite! ... Steel Cities Take Joint Action

Pohang, Gwangyang, and Dangjin Hold Emergency Video Conference of Steel Industry City Mayors
Call for Nationwide Measures to Protect and Strengthen the Competitiveness of the Domestic Steel Industry

Amid the escalating crisis in the steel industry due to the worsening global trade environment, Pohang City held an 'Emergency Video Conference of Steel Industry City Mayors' with Gwangyang and Dangjin Cities on the 13th to seek joint responses.

On the 13th, Pohang City held an "Emergency Video Conference of Steel Industry City Mayors" with Gwangyang and Dangjin Cities to seek joint response measures. Photo by Pohang City

The video conference was attended by Lee Kang-deok, Mayor of Pohang, Jeong In-hwa, Mayor of Gwangyang, and Hwang Chim-hyun, Deputy Mayor of Dangjin. They shared the current status and damage situations of the steel industry in each local government and agreed to unite efforts for a joint response to overcome the crisis in the steel industry.

The global steel market has seen a decline in steel demand since 2021 due to the global economic downturn, but the supply-demand imbalance has worsened due to China's still high crude steel production volume.

Additionally, the domestic steel industry has faced an unprecedented recession due to China's low-price offensive and weakened competitiveness caused by Japan's weak yen, and the crisis has reached its peak recently with the U.S. imposing a 25% tariff on steel products.

The crude steel production volume of Pohang, Gwangyang, and Dangjin, which participated in the meeting, accounts for about 93% of the total domestic crude steel production, representing a significant share. Given the substantial impact of the steel industry on the regional economy, there is an urgent need for measures to respond to the steel industry crisis.

Accordingly, the three cities formed a consensus that they must unite to overcome the current crisis that could shake not only the regional industry but the entire Korean steel industry. They agreed to lead cooperation among ruling and opposition parties and the government to prepare proactive, government-wide response measures.

They also expressed concern that the collapse of the steel industry would lead to the collapse of the national economy as a whole, resulting in an irrecoverable situation, and adopted a 'Joint Proposal for Overcoming the Steel Industry Crisis' urging the preparation of practical measures such as emergency financial support and tax benefits for steel companies.

Lee Kang-deok, Mayor of Pohang, said, "Steel is an irreplaceable core material necessary for all industries such as automobiles, shipbuilding, and electronics, and a major export product of our industry. The crisis in the steel industry is a crisis not only for the region but for the entire Republic of Korea." He added, "We will work closely with Gwangyang and Dangjin Cities, actively listen to the opinions of local steel companies and related organizations, and make every effort to prepare government-wide responses to protect and strengthen the competitiveness of the domestic steel industry."

Pohang City is striving to be designated as a 'Special Industrial Crisis Response Area' to overcome the crisis in the local steel industry. It has continuously proposed special support measures at the government and National Assembly levels, including mandatory domestic company quotas, reduction of industrial electricity rates, prompt handling of anti-dumping petitions on Chinese steel plates, and diplomatic efforts to agree on export quotas.

Additionally, on the 11th, Lee Kang-deok, Mayor of Pohang, issued an appeal calling for a government-wide joint response to strengthen the competitiveness of the domestic steel industry.