Crisis Threatens the Foundation of Korea's Steel Industry,
Joint Government-Wide Action Urged
K-Steel Act Must Include Practical Support Measures,
Such as Electricity Cost Solutions and National Funding for Infrastructure
Pohang, Gwangyang, and Dangjin have spoken with one voice.
On December 12, the steel cities of Pohang, Gwangyang, and Dangjin, which have supported the nation’s industry for decades, held a press conference at the National Assembly Communication Center, warning that the steel industry is now on the brink. They declared, “There is no more time to delay,” and called on the government and the National Assembly to prepare comprehensive, government-wide measures.
"Prevent the Collapse of the Steel Industry" Pohang, Gwangyang, and Dangjin Urge Drastic Measures to Overcome the Crisis. Photo by Pohang City
On December 12, at the National Assembly Communication Center in Seoul, National Assembly members Lee Sanghui (Pohang South/Ulleung) and Uh Kigoo (Dangjin, South Chungcheong), who jointly sponsored the K-Steel Act, as well as National Assembly members Kim Jeongjae (Pohang North) and Kwon Hyangyeop (Gwangyang, South Jeolla), Mayor Lee Kangdeok of Pohang, Mayor Jung Inhwa of Gwangyang, Mayor Oh Seonghwan of Dangjin, Pohang Chamber of Commerce and Industry Chairman Na Jooyoung, Gwangyang Chamber of Commerce and Industry Chairman Woo Gwangil, and Dangjin Chamber of Commerce and Industry Chairman Shin Hyeondeok, held a joint press conference. They issued an appeal for a bipartisan, government-wide response, calling for renegotiation of tariffs on steel products exported to the United States and the establishment of effective enforcement ordinances for the K-Steel Act.
As of last year, Pohang, Gwangyang, and Dangjin accounted for 93% of domestic crude steel production, making them key industrial hubs. However, the combined impact of the global economic slowdown and high U.S. tariffs has dealt a heavy blow to these cities. As of October this year, steel product exports had decreased by 28.4% in Pohang and 10.9% in Gwangyang compared to the previous year, with the rate of decline continuing to widen.
In particular, following the conclusion of tariff negotiations between South Korea and the United States at the end of October, the 50% tariff rate on domestic steel products was maintained, further heightening the sense of crisis within the industry.
The three cities pointed out that, amid an unprecedented recession, the 50% tariff is accelerating the collapse of the local economy. They emphasized that the steel industry, which supplies core materials to major sectors such as automotive, shipbuilding, and construction, is a national key industry. They defined the current situation as a “major crisis threatening the entire national economy.”
Accordingly, they proposed three key policy tasks to the National Assembly and the government: ▲ developing a government-wide response strategy, including renegotiations with the United States; ▲ reflecting local opinions and including practical support measures in the enforcement ordinance for the K-Steel Act; and ▲ designating the regions as preemptive response areas for industrial and employment crises.
First, they urged government ministries such as the Ministry of Foreign Affairs and the Ministry of Trade, Industry and Energy to establish a joint response system and promptly develop a negotiation strategy with the United States. They also stressed that the enforcement ordinance for the K-Steel Act must include effective measures such as reducing companies’ electricity costs, supporting carbon-neutral investments, and allocating national funds for expanding steel infrastructure.
Additionally, the three cities called for the designation of Dangjin as a “preemptive response area for industrial crisis” and the designation of Gwangyang and Dangjin as “preemptive response areas for employment crisis,” urging the implementation of practical and comprehensive regional support measures.
Jung Inhwa, Mayor of Gwangyang, emphasized, “The enforcement ordinance for the K-Steel Act must include concrete measures for immediate reduction of electricity costs and support for carbon neutrality to alleviate the burden on companies.” Oh Seonghwan, Mayor of Dangjin, appealed, “The fact that only Dangjin has not been designated as a preemptive response area for industrial crisis is a major disappointment for local businesspeople,” and called for swift designation.
Mayor Lee Kangdeok stated, “The crisis in steel is not just a problem for certain companies or regions, but a crisis for the entire national economy. In particular, without a fundamental solution to U.S. trade issues, we cannot discuss the future of Korean steel. I earnestly urge the government to mobilize all diplomatic efforts and engage in renegotiations.”
Mayor Lee Kangdeok of Pohang urging special measures to overcome the crisis. Provided by Pohang City
Na Jooyoung, Chairman of the Pohang Chamber of Commerce and Industry, stressed, “Government support in trade diplomacy and R&D is essential for the survival of the steel industry.” Woo Gwangil, Chairman of the Gwangyang Chamber of Commerce and Industry, appealed, “The K-Steel Act must include effective measures to reduce the burden on companies, especially by addressing industrial electricity costs.”
Shin Hyeondeok, Chairman of the Dangjin Chamber of Commerce and Industry, said, “Dangjin must be designated as a preemptive response area for industrial crisis and emergency support measures must be prepared.” He spoke on behalf of local businesses, warning that without national support, the industrial base itself could be shaken.
The three cities stated that they will continue to work closely with the government and the National Assembly to ensure that their policies are reflected, and will focus their efforts on securing future competitiveness and a sustainable transition for the steel industry.
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