Finance minister calls on industry to accelerate self-rescue efforts, vowing backing for proactive players
South Korea will inject 570 billion won ($396 million) into its steel industry to strengthen export competitiveness, curb unfairly priced imports, and accelerate technological innovation, the government announced Tuesday.
The support package — part of a broader industrial restructuring plan — includes a 400 billion won guarantee program aimed at reinforcing export supply chains, in addition to 170 billion won in policy financing to back companies undertaking modernization and capacity adjustments.
The plan was unveiled during a ministerial meeting presided over by Finance Minister and Deputy Prime Minister Koo Yun-cheol, who also urged the country’s petrochemical firms to accelerate long-delayed restructuring before the year-end deadline.
“The conclusion of the Korea-US tariff deal has largely eased the uncertainty weighing on our economy,” Koo said. “The government will continue to strengthen the core competitiveness of our industries to ensure resilience against external shocks.”
Under the new package, the government will focus first on the general-purpose steel segment, particularly rebar — a key construction material — where oversupply has weakened profitability and raised import dependence. Firms that voluntarily adjust production capacity will be eligible for tax incentives and financial support, while additional measures will be considered under the pending Steel Industry Special Act.
To counter the inflow of low-priced steel imports, authorities plan to expand anti-dumping duties to cover cases involving circumvention through third countries and bonded zones.
The government will also invest 200 billion won by 2030 to develop 10 specialized grades of carbon steel, aiming to raise the share of high-grade steel in domestic production from 12 percent to 20 percent — surpassing Japan’s 17 percent and approaching Germany’s 38 percent.
Longer term, Seoul aims to position Korea as a leader in low-carbon steelmaking, advancing hydrogen-based production technologies and AI-driven process optimization to reduce emissions and improve productivity.
“The steel industry is the foundation of our manufacturing competitiveness,” Koo said. “This support plan is designed to help our companies overcome current challenges, strengthen technological capacity, and secure sustainable growth.”
jwc@heraldcorp.com
