Preparing for the Future with AI and Hydrogen-based Steelmaking
Kim Jungkwan, Minister of Trade, Industry and Energy, is speaking at the Economic Ministers' Meeting and the Industrial Competitiveness Enhancement Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on September 3, 2025. Photo by Jo Yongjun
The government has established a new "Steel Export Supply Chain Enhancement Guarantee Product" worth approximately 400 billion won to help the steel industry overcome its current crisis and strengthen its future competitiveness. In addition, it will begin full-scale implementation of the Korean-style hydrogen-based steelmaking demonstration project, which is the world's first of its kind.
On September 19, Kim Jungkwan, Minister of Trade, Industry and Energy, visited Pohang and announced these support measures, emphasizing, "We will actively support process innovation based on AI and the transition to low-carbon, high value-added products."
In Pohang, which has been designated as a preemptive industrial crisis response area, Minister Kim inspected the No. 2 blast furnace at the POSCO steel mill and the Hydrogen-based Steelmaking Development Center, and held a meeting with the heads of major steel companies. During the on-site inspection, he stated, "Worker safety is the starting point of industrial competitiveness," and called for strengthened corporate management and increased investment to prevent serious industrial accidents.
The hydrogen-based steelmaking technology, which the government is prioritizing, is a core technology expected to dramatically enhance the "green competitiveness" of the steel industry. From 2026 to 2030, a demonstration project worth a total of 810 billion won will be carried out. Minister Kim stated, "We will continue to support the transition by enhancing production efficiency and safety management through the integration of AI, providing incentives for low-carbon steel and special carbon steel, among other measures."
The meeting was attended by executives from major steel companies, including POSCO, Hyundai Steel, Dongkuk Steel, Seah Steel, Nexteel, and TCC Steel, as well as the Executive Vice Chairman of the Korea Iron & Steel Association. Minister Kim explained, "We strongly demanded an exemption from steel tariffs during negotiations with the United States, but it was not easy to achieve," asking for the industry's understanding. He added, "We will continue negotiations to ease tariffs and strengthen defenses against unfair imports such as circumvention dumping."
He also stated, "Regarding the issue of domestic and international oversupply, we will maintain close communication with the industry to develop item-specific response strategies, and we will resolve the regional economic difficulties triggered by the steel industry crisis." He further added, "We will work to ensure that the Special Act on the Steel Industry, which has been proposed in the National Assembly, is enacted so that key policy tasks can be legislated."
The Ministry of Trade, Industry and Energy has continued discussions with experts and the industry, centered on the "Steel Industry Competitiveness Enhancement Task Force," which was launched in January. Based on these discussions, the ministry plans to soon announce the "Steel Industry Advancement Plan," which will include measures to respond to global oversupply, block unfair imports, promote the transition to low-carbon and high value-added products, and strengthen safety management and win-win cooperation.
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