With the "K-steel act (special act to strengthen the competitiveness of the steel industry and transition to carbon neutrality)" nearing passage in the National Assembly to bolster the competitiveness of Korea's steel industry, the industry is focusing on follow-up steps. Once the "special committee on strengthening steel industry competitiveness (steel special committee)" under the prime minister is established early next year, a practical roadmap will be produced, including a five-year basic plan to strengthen the steel industry's competitiveness and annual implementation plans.
According to the steel industry and the National Assembly on the 26th, the K-steel act is scheduled to be introduced at the National Assembly's plenary session on the 27th. The K-steel act is a livelihood and economy bill pushed by both ruling and opposition parties as their party line, and it also cleared The National Assembly's Legislation and Judiciary Committee's full session without difficulty that day.
The "K-steel act" consolidates four bills: the bill (special act to strengthen the competitiveness of the steel industry and transition to green steel technology) spearheaded by Eo Gi-gu of the Democratic Party of Korea and Rep. Lee Sang-hwi; the bill by Rep. Kwon Hyang-yeop of the Democratic Party of Korea (special act to promote the advancement of the steel industry and the transition to decarbonization); the bill by Rep. Kim Jeong-jae of the People Power Party (special act to support strengthening the competitiveness of the steel industry and the transition to carbon neutrality); and the bill by Rep. Kim Won-i of the Democratic Party of Korea (special act to strengthen the competitiveness of the steel industry and the transition to carbon neutrality). The Trade. Industry Energy. SMEs. and Startups Committee presented it as a committee alternative.
If the "K-steel act" passes the National Assembly's plenary session, the steel special committee under the prime minister will be established. This is a body to deliberate and decide on major policies and plans related to strengthening the steel industry's competitiveness and the transition to carbon neutrality. It was initially pushed as a body under the president, but in the committee alternative it was changed to be under the prime minister. Once the act is promulgated, a preparatory committee for the steel special committee will be launched, and the Ministry of Trade and Industry (MOTI) and the Korea Iron & Steel Association are expected to lead the formation of the committee.
A senior official in the steel industry said, "A roadmap on how to support the current steel industry has not been clearly laid out," adding, "The MOTI plan is not final, so specific execution plans will be finalized through the special committee."
The steel special committee plans to prepare: ▲ a five-year basic plan for the steel industry ▲ annual implementation plans ▲ measures to overcome short-term expense competitiveness issues such as electricity rates ▲ measures to resolve terms of trade ▲ support plans for industrial crisis response zones.
There is an assessment that the K-steel act has been somewhat strengthened on "transition to carbon neutrality" compared with the original member's bill. It includes implementing a low-carbon steel certification system, designating low-carbon steel special zones, shortening the review period for corporate combinations, and exceptional permission for concerted acts. Low-carbon steel refers to steel produced by applying technologies that reduce greenhouse gas emissions.
In particular, by stipulating special cases for the application of the "Monopoly Regulation and Fair Trade Act," such as allowing information exchange to prepare for business restructuring, it appears the industry will be able to move outside the regulatory net. This means that special cases for strengthening competitiveness and transitioning to carbon neutrality, and deregulation under the K-steel act will take precedence over other laws.