POSCO and Hyundai Steel Face 400 Billion Won US Tariff Hit, Matching Quarterly Operating Profits

Tariffs Total $281 Million from March to December
Payments Surge After 50% Rate Applied in June
Korean Steel Exports to US Expected to Drop 9% in Second Half

It has been revealed that the two major steel companies in South Korea, POSCO and Hyundai Steel, are expected to pay tariffs totaling 400 billion won in the United States this year.

According to data on tariff payments to the United States received from POSCO and Hyundai Steel by Assemblyman Park Sooyoung of the People Power Party on October 10, the total amount to be paid from March, when the tariffs were imposed, through December is estimated at 281 million dollars (approximately 400 billion won). This amount is equivalent to the combined operating profits of the two companies in the second quarter of this year.

Yonhap News Agency

The office of Assemblyman Park stated, "This is the first time the specific amounts of U.S. tariff payments by the two companies have been disclosed," adding, "Following discussions with each company, it was decided not to release the individual tariff payment amounts for each company, citing trade secrets and other business reasons."

According to the data, the two companies paid 11.5 million dollars, 12.2 million dollars, and 33.3 million dollars in tariffs to the United States in March, April, and May, respectively, when a 25% tariff rate was applied. However, in June, when the tariff rate was raised to 50%, the payment surged to 42.6 million dollars. The total amount paid from March to August reached 147 million dollars, or about 210 billion won.

The two companies estimated that the tariffs to be paid from September to December would be at least 30 million dollars per month, totaling approximately 134 million dollars. This estimate was calculated based on export volumes in the first half of this year, as well as average and previous year export volumes and current market conditions.

Meanwhile, the Korea Iron & Steel Association stated in materials submitted to Assemblyman Park's office that "due to the slowdown in downstream industries in the United States and the impact of tariffs, exports of Korean steel products to the United States in the second half of this year are expected to decrease by about 9% compared to the first half."