Debate on the Special Act to strengthen competitiveness in the steel industry and transition to green steel technology (K-Steel Act), introduced by 106 lawmakers from both parties, will begin at the National Assembly on the 19th. Public officials in charge at the Ministry of Trade and Industry (MOTI) and people from the steel industry are making last-minute efforts to pass the bill, visiting lawmakers' offices at the National Assembly in Yeouido, Seoul, to explain the K-Steel Act.
The Ministry of Trade and Industry (MOTI) and the steel industry are concerned that if the K-Steel Act once again fails to be discussed in the National Assembly due to political strife, mid-sized and small companies with a high share of exports to the United States could be the first to face a crisis.
According to the steel industry and the National Assembly on the 18th, the Trade. Industry Energy. SMEs. and Startups Committee's bill review subcommittee will hold a meeting on the 19th to deliberate the K-Steel Act. The committee plans to hold a full meeting as early as the 21st to vote on the bill. Lawmakers from both parties on the committee are said to agree on the need for swift handling of the K-Steel Act.
Lee Cheol-gyu, chair of the Trade. Industry Energy. SMEs. and Startups Committee (People Power Party), said in a call the previous day, "We need to craft a good bill to support steel," adding, "Not only the bill subcommittee but also the committee members overall share this view."
An aide in the office of Rep. Park Sung-min of the People Power Party, who chairs the committee's bill review subcommittee, said, "We plan to deliberate with the goal of passing the bill as quickly as possible," adding, "If the full committee meets on the 21st to approve it and it then passes the Legislation and Judiciary Committee and the plenary session, the bill will be finally passed."
Public officials at the Ministry of Trade and Industry (MOTI) and people from the steel industry said they met with aides in lawmakers' offices at the National Assembly until late the previous day to explain the K-Steel Act and ask for cooperation in handling the bill. An official at MOTI said, "The 106 lawmakers who introduced the bill know its contents, but there are still lawmakers who do not," adding, "We are visiting such offices one by one to explain the bill."
The K-Steel Act contains support measures for the steel industry in response to weak demand, increased imports of low-priced steel, stronger global tariff barriers, and mounting pressure for carbon neutrality. The bill includes practical measures such as ▲ strengthening steel industry competitiveness and designating it as a national strategic industry ▲ supporting and accelerating the transition to green steel technology ▲ responding to unfair trade and protecting the market ▲ industrial restructuring and workforce development. The bill was jointly introduced by 106 lawmakers from both parties in Aug., but discussion in the National Assembly has stalled for over three months.
The steel industry says swift passage of the bill is urgent. It is struggling due to weak demand and the impact of U.S. tariffs. POSCO, the nation's No. 1 steelmaker, shut down the Pohang No. 1 steelmaking plant and No. 1 wire rod plant last year due to weakened competitiveness. Hyundai Steel is also tightening its belt, closing Pohang Plant No. 2 early this year.
As a result, steel cities such as Pohang, Gwangyang, and Dangjin have suffered blows across their urban economies. Pohang was designated an industrial crisis preemptive response area in Aug. The industry says the K-Steel Act needs to be implemented swiftly to prevent a wave of bankruptcies among small and medium steel companies.
Jung Eun-mi, a senior researcher at the Korea Institute for Industrial Economics & Trade (KIET), said, "The bill also includes content on restructuring in the steel industry," adding, "Since business reorganization led by the government is accompanied by incentives, passage of the K-Steel Act in the National Assembly is urgent."
However, a variable is that continued standoff between the parties over the decision to drop the appeal in the Daejang-dong development scandal could still push back discussion of the K-Steel Act. To bring the bill to the plenary session, it must pass the Legislation and Judiciary Committee, but with escalating partisan conflict, it is uncertain when the committee will meet.
As of today, the floor leadership of both parties has not reached an agreement on pursuing a parliamentary investigation into the decision to drop the appeal in the Daejang-dong case. The Democratic Party of Korea says there was no external pressure at the government level and is calling for a parliamentary probe into prosecutors who engaged in "insubordination," while the People Power Party says the scope of the investigation should include allegations of external pressure. The People Power Party leadership and more than 50 lawmakers held a news conference in front of the presidential office in Yongsan, Seoul, the previous day to call for a parliamentary investigation, intensifying their offensive.
An official at a large steel company said, "Even though this is a bill that both parties agreed to prioritize without disagreement, it has not been discussed for the past three months," adding, "It is regrettable that political strife is holding back even economic bills."