Yoon Indae: "We Will Review Support Measures with Relevant Ministries for Swift Action"
The government met with steel companies in the Pohang region to discuss ways to strengthen industrial competitiveness and protect export-oriented businesses. Amid mounting challenges in the steel industry, the government is considering designating Pohang as a Preemptive Industrial Crisis Response Area to prevent employment concerns and related issues from spreading throughout the region.
Yoon Indae, Deputy Minister for Economic Policy at the Ministry of Economy and Finance (second from the right in the front row), visited the POSCO headquarters in Pohang, Gyeongbuk on the 14th, inspecting the site and listening to explanations from officials. Ministry of Economy and Finance
On August 14, the government held the "Pohang Steel Companies Relay On-site Meeting" at Pohang City Hall in North Gyeongsang Province. The meeting was attended by Yoon Indae, Deputy Minister for Economic Policy at the Ministry of Economy and Finance, officials from the Ministry of Trade, Industry and Energy and other relevant ministries, as well as representatives from local governments such as North Gyeongsang Province and Pohang City. Six Pohang-based companies-POSCO, Hyundai Steel, Dongkuk Steel, SeAH Steel, Nexteel, and TCC Steel-also participated.
Since the launch of the first Growth Strategy Task Force (TF) on August 5, the Ministry of Economy and Finance has been holding a series of on-site relay meetings to gather suggestions from companies aimed at alleviating their burdens and addressing difficulties, with the goal of promoting corporate growth and dynamism. The latest relay meeting was co-hosted by the Ministry of Trade, Industry and Energy, and focused on discussing strategies to overcome the steel industry crisis in the Pohang region.
The participating companies, facing difficulties due to recent global oversupply and U.S. tariffs, as well as other trade issues, proposed institutional support measures to strengthen the competitiveness of the steel industry and protect export-oriented businesses. This was followed by in-depth discussions with local governments.
During efforts to enhance the competitiveness of the steel industry, participants emphasized the need for active government support for corporate research and development aimed at reducing carbon emissions and improving energy efficiency, as a response to global oversupply. Government representatives responded by stating that they would further develop plans for the steel industry’s transition to low-carbon operations and industrial advancement.
Participants also reached a consensus on the need for preemptive action to prevent the steel industry crisis from spreading to the broader Pohang regional economy. Several opinions were raised, including the need for support to stabilize employment and financial assistance for local partner companies and small business owners to address the challenges facing the region.
Oh Seungcheol, Director General for Industrial Policy at the Ministry of Trade, Industry and Energy, stated, "We will promptly review whether to designate Pohang as a Preemptive Industrial Crisis Response Area, taking into account the conditions of the city and local companies." Deputy Minister Yoon added, "Through the Industrial Crisis Response Review Committee, we will work with relevant ministries to review support measures and ensure swift action."
Going forward, the government, led by the Ministry of Economy and Finance, plans to continue holding relay on-site meetings to promote corporate growth and dynamism, gather feedback from the field together with relevant ministries, and continuously identify issues for regulatory and support system improvements.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
