South Korea's industry minister urged the United States on Saturday to ease tariffs on equipment that Korean companies will need to import for a US$5.8 billion steel mill in Louisiana they are investing in.
Industry Minister Kim Jung-kwan made the request at a meeting with Louisiana Gov. Jeff Landry before attending a groundbreaking ceremony for Hyundai-POSCO Louisiana Steel LLC (HPLS), an electric arc furnace-based integrated steel mill scheduled to begin construction in the fourth quarter, the Ministry of Trade, Industry and Resources said in a press release.
HPLS is a joint venture among Hyundai Motor Group affiliates Hyundai Steel Co., Hyundai Motor Co. and Kia Corp., and steelmaker POSCO.
Foreign steelmakers in the US face tariffs under Section 232 of the Trade Expansion Act of 1962, which allows the US president to adjust imports deemed to threaten national security, as well as other trade remedy measures, the ministry said.
Kim urged Washington to pay close attention to difficulties facing Korean companies investing in the US and support the project by easing tariffs on equipment and materials that need to be shipped from South Korea.
He stressed the importance of the project, which is expected to strengthen supply chain cooperation between the two countries by combining South Korean steelmaking technology with US industrial and energy infrastructure, the ministry said.
The plant will supply automotive steel to global automakers' production facilities in the southern United States and Mexico, including those operated by Hyundai Motor and Kia, it said.
Hyundai Motor Group Executive Chair Euisun Chung, POSCO Group Chairman Chang In-hwa and South Korean Ambassador to the United States Kang Kyung-wha attended the groundbreaking ceremony.
Chung said automotive steel produced at the Louisiana plant would help Hyundai Motor Group and US automakers develop next-generation mobility solutions.
"Hyundai Steel is already showing the scale of what transformational investment can mean for Louisiana," Louisiana Economic Development Secretary Susan B. Bourgeois said. "This project is creating work for Louisiana companies, building a workforce around high-value manufacturing and driving new activity across the region before production has even begun."
The project is part of Hyundai Motor Group's $26 billion US investment plan announced last year.
Hyundai Steel said in March 2025 that it would invest $5.8 billion to build its first steel mill in North America, with commercial production scheduled to begin in 2029.
POSCO has taken a 20 percent stake in the project. Hyundai Steel, Hyundai Motor and Kia hold 50 percent, 15 percent and 15 percent, respectively. (Yonhap)
