Relentless Efforts to Revitalize the Steel Industry, the Foundation of the Region and the Heart of K-Manufacturing
Joint Initiative by Lawmakers Lee Sanghui and Uh Kigoo... K-Steel Act Passes the National Assembly
No Political Strife Before National Interest! 'City of Steel' Pohang Fires the Starting Signal for Industrial Reconstruction with the K-Steel Act.
With the joint efforts of Pohang City and both the ruling and opposition parties, the "Special Act on Strengthening the Competitiveness of the Steel Industry and Transition to Carbon Neutrality" passed the National Assembly plenary session on November 27, providing a crucial opportunity to restore the competitiveness of Korea's steel industry.
The enactment of the K-Steel Act is significant in that both the local political community and lawmakers from both parties joined forces through multifaceted efforts, finally establishing an institutional framework through the plenary vote.
On August 4, 106 lawmakers from both parties, including Lee Sanghui (Pohang South and Ulleung), Co-Chair of the National Assembly Steel Forum, and Uh Kigoo (Dangjin, South Chungcheong), jointly sponsored the "Special Act on Strengthening the Competitiveness of the Steel Industry and Transition to Carbon Neutrality."
Subsequently, Assemblyman Lee Sanghui carried out various activities to promote the enactment of the bill, gathering feedback from the steel industry in his constituency, including POSCO, to improve the bill’s completeness. In September, he also hosted a policy debate at the National Assembly Steel Forum, drawing attention to the significance and future tasks of the K-Steel Act.
Later, four bills-proposed by Kim Jeongjae (Pohang North), Kwon Hyangyeop (Suncheon, South Jeolla), and Kim Woni (Mokpo, South Jeolla)-were integrated, combining efforts to overcome the steel industry crisis and resulting in the passage of the special act.
Until the K-Steel Act was enacted, Pohang City had been making all-out efforts to revitalize its industrial complexes and diversify its industrial structure by significantly increasing special guarantees for small business owners and operating funds for small and medium-sized enterprises. Given the nature of the steel industry as a national key industry, the city has been persistently appealing to the government and the National Assembly for the swift enactment of the K-Steel Act, emphasizing the urgent need for strong and strategic support from the central government.
In particular, Mayor Lee Kangdeok staged a campaign in front of the White House and the Capitol in Washington, D.C. last September, earnestly urging the United States to stop imposing steel tariffs on its ally, Korea.
Additionally, Pohang City has been making joint efforts by holding emergency video conferences with the mayors of Dangjin and Gwangyang (in February and November) to discuss government-wide response measures and submitting official joint proposals to the government and the National Assembly.
Pohang City held an "Emergency Video Conference for Steel Industry City Leaders" with Gwangyang and Dangjin Cities last February to seek joint response measures. Photo by Pohang City
As a result of these efforts, Pohang City was designated as a Special Support Zone for Small and Medium-Sized Enterprises for an additional two years this January, became the first among all steel cities nationwide to be designated as a Preemptive Industrial Crisis Response Area in August, and was designated as a Preemptive Employment Crisis Response Area in November.
Once enacted, the K-Steel Act, which includes various measures to strengthen the global competitiveness of the steel industry and support the transition to carbon neutrality, will help enhance the industry’s competitiveness through initiatives such as a carbon steel certification system, designation of low-carbon steel special zones, and shortening the review period for business combinations.
However, some provisions of the bill do not fully reflect the unique characteristics of Pohang, where massive steel facilities and equipment are concentrated. Therefore, the city plans to actively propose that effective provisions tailored to the realities of the industry be included in the upcoming enforcement decree.
The core proposals include: preferential support criteria for the development and introduction of carbon emission reduction technologies for existing blast furnaces; providing the legal basis for prioritizing Pohang as a low-carbon steel special zone; full government funding for the introduction of energy-saving equipment by small and medium-sized enterprises; establishment of a steel resource recycling industrial cluster in Pohang; specifying full government funding for the construction of national power grids, water, and hydrogen supply infrastructure; and requiring alternative investment plans or employment retention measures for the region when approving business restructuring.
To this end, the three steel cities of Pohang, Gwangyang, and Dangjin plan to hold a joint press conference at the National Assembly Communication Center on December 12 to deliver a message urging the government for effective implementation of the K-Steel Act and to ensure that the voices from industrial sites are reflected in the enforcement decree.
Mayor Lee Kangdeok stated, "The K-Steel Act, which will serve as a foundation to address the pressing issues of strengthening the competitiveness of Korea's steel industry and achieving carbon neutrality, has passed the National Assembly thanks to the efforts of lawmakers from both parties, including local representatives. I sincerely welcome this together with the citizens of Pohang and will do my utmost to ensure that the voices of the region are reflected and the effectiveness of the bill is enhanced through follow-up measures."
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