Chang In-hwa, Korea Iron & Steel Association chairman (POSCO Group chairman), said on the 13th that the entire steel industry should solidify its edge in the high value-added race and step up efforts for a low-carbon transition and for establishing an accident-free steel industry.
At a New Year's gathering for the steel industry held the afternoon of the 13th at POSCO Center in Daechi-dong, Gangnam-gu, Seoul, Chairman Chang said, "There are tasks that our steel industry must prioritize for the sector's new leap," and stated accordingly.
Chang said, "Amid a prolonged slump in steel demand, global oversupply, and continued inflows of low-priced imported steel, our steel products must become an irreplaceable choice for sustainable development."
Chang added, "We must cement partnerships with downstream industries and strengthen cooperation in all areas, including technology development and marketing," and "if key industries secure global competitiveness with domestically produced steel, this will translate into demand."
Chang said, "We also need to strengthen efforts for a low-carbon transition," adding, "with the European Union's carbon border adjustment mechanism (CBAM—imposing taxes equivalent to carbon emissions generated during production on major imports) taking effect and the greenhouse gas emissions allowance trading scheme set to be strengthened, the low-carbon transition is a matter of survival."
He continued, "As a Korean-style hydrogen direct reduction steelmaking demonstration project is being pursued this year, we must proceed without setbacks with efforts to transition the industry to carbon neutrality," and "we must also work to expand the use of low-carbon raw materials for short-term carbon emission reductions."
Chang said, "Above all, we must make safety the top priority value and work to establish an accident-free steel industry," adding, "safety is the basis of all management activities and a prerequisite that ensures a corporation's survival. All executives and employees in the steel industry must make zero accidents the highest value and achieve it."
Regarding legislation of a special act to strengthen the steel industry's competitiveness (K-Steel Act), Chang called it "a spark of hope amid crisis." He added, "We must use this opportunity as a springboard to make this year a turning point for the steel industry to take off again."
At the New Year's gathering, about 200 people attended, including Chairman Chang; Vice Minister Mun Sinhak of the Ministry of Trade and Industry (MOTI); POSCO President Lee Hee-geun; Hyundai Steel President Lee Bo-ryong; KG Steel Chairman Kwak Jae-sun; SeAH Steel Vice Chairman Lee Hwi-ryeong; KISWIRE Vice Chairman Hong Seok-pyo; TCC Steel Vice Chairman Cho Seok-hee; and Korea Iron & Steel Association Vice Chairman Lee Kyung-ho, along with 21 member company representatives of the association, academics, researchers, and MOTI officials.
Vice Minister Mun Sinhak, like Chairman Chang, emphasized "high value-added steel." Mun said, "The first task I undertook as vice minister was to prepare a steel industry restructuring plan," adding, "as our steel industry enters a mature phase, fundamental restructuring is needed."
He continued, "The reason a few advanced countries still remain powerhouses in the steel industry is because they have maintained competitiveness in high value-added steel, including specialty steel," and said, "it will be difficult, but we must carry out restructuring of commodity products and move toward high value-added low-carbon steel."
Hyundai Steel CEO Lee Bo-ryong, making his first public appearance since taking office, told reporters right after the event, "I feel a heavy responsibility to take charge of the company in difficult times," adding, "I will do my best to work in step with the government so that the steel industry can make a strong leap."