Steel Association Welcomes Special Act, Expects Support for Both Competitiveness and Green Transition

Includes Power Grid Expansion and Measures Against Unfair Trade
Establishing an Institutional Foundation to Resolve U.S. Tariffs and More

The Korea Iron and Steel Association announced on the 4th that it welcomes the proposal of the "Special Act on Strengthening the Competitiveness of the Steel Industry and Transition to Green Steel Technology" (hereinafter referred to as the Special Act).

This Special Act was jointly proposed by Eo Gigu, a member of the National Assembly from the Democratic Party of Korea and co-chair of the National Assembly Steel Forum, and Lee Sanghui, a member of the People Power Party. The act aims to support the steel industry, which is facing difficulties due to global oversupply and the spread of protectionism in major countries, and to promote the transition to green technology at the national level.

Raw materials are emitting heat close to 900 degrees as they undergo the rolling process at a steel mill in Incheon. Photo by Asia Economy DB

The Special Act includes measures to support the steel industry such as: establishing a basic plan for strengthening the competitiveness of the steel industry and transitioning to carbon neutrality; designating green steel special zones; expanding the power grid and raw material base; and responding to unfair trade practices. The association evaluated, "Amid the complex crisis in the steel industry, it is significant that a comprehensive government-level response system has been established and a practical institutional foundation has been laid to achieve both industrial competitiveness and carbon neutrality."

The steel industry is regarded as a key industry that supplies basic materials to core sectors such as construction, automobiles, and shipbuilding. However, unlike the automobile sector, the 50% tariff was maintained during the recent tariff negotiations with the United States. In addition, as demands for a transition to carbon neutrality are increasing, the steel industry is facing a dual challenge: it must seek survival strategies while also investing in the transition to green technology.

The association expects that this Special Act will provide an institutional foundation that enables both strengthening the global competitiveness of the steel industry and transitioning to low-carbon processes, and that it will offer practical help in overcoming the industry's crisis. Furthermore, through the Special Act, the association plans to cooperate so that policy support for the steel industry is linked to a long-term vision and can be implemented effectively in the field.

Lee Kyungho, Executive Vice Chairman of the association, stated, "We welcome the proposal of this Special Act by the National Assembly Steel Forum at a very important time for overcoming the crisis in the steel industry and transitioning to green steel technology," and added, "We expect it will greatly contribute to strengthening the competitiveness of the steel industry and establishing a sustainable industrial foundation."