As the tariff on Korean products is set at 15%, the 50% tariff on steel, which is subject to item tariffs, remains in place, continuing the concerns within the steel industry. In response, the National Assembly has proposed the so-called 'K Steel Act' to support Korea's steel industry.
According to relevant industry sources on the 4th, more than 100 lawmakers from both the ruling and opposition parties proposed a special bill for strengthening the competitiveness of the steel industry and transitioning to green steel technology. The bill was co-sponsored by Democratic Party of Korea lawmaker Eo Gi-goo and People Power Party lawmaker Lee Sang-hwi, who are co-representatives of the National Assembly Steel Forum.
The K Steel Act includes provisions for: ▲ the establishment of a special committee under the president to strengthen the competitiveness of the steel industry ▲ the designation of green steel special zones and granting regulatory exemptions ▲ the selection of core strategic technologies for steel ▲ tax and financial support ▲ and exceptions to the prohibition of collusion regulations. A National Assembly official noted, "The aim is to establish a sustainable growth foundation for the steel industry and contribute to national economic security and development."
Major countries, including the United States and Europe, are implementing policies to protect their domestic steel industries. The U.S. raised the tariffs on imported steel to 50% last March, and the European Union announced the 'Steel and Metal Action Plan' to enhance the competitiveness of the steel industry earlier this year.
Overall, the steel industry viewed the proposal of the K Steel Act positively. The Korea Iron & Steel Association stated on the same day, "We warmly welcome the proposal of the K Steel Act." A steel industry official also remarked, "There is a consensus that the steel industry is struggling, and it is positive that the government and the National Assembly are discussing support measures."
However, another steel industry source stated, "It is now time to focus on policies that will benefit the entire steel industry rather than support for carbon reduction."