The Democratic Party of Korea said on the 7th that it will push forward with the 'K-Steel Act,' which supports subsidies for the development and investment in green steel technology in the steel industry. With a legislative consensus between the ruling and opposition parties, the ruling party is expected to accelerate the progress of the K-Steel Act.
Democratic Party of Korea floor leader Kim Byeong-ki noted during a weekday strategy meeting that "the steel industry is the backbone of manufacturing and a pillar of the national economy," adding, "We will promote the K-Steel Act as a party agenda."
The United States decided in June to impose a 50% tariff on steel products imported from around the world. This measure was maintained in the U.S.-Korea trade negotiations concluded on the 31st of last month. With the domestic steel industry suffering from a double whammy due to China's low-priced steel products, there has been a growing call in the political arena for national-level active protection.
Kim, the floor leader, explained, "The steel industry is currently facing significant difficulties. Low-priced imports from China are flooding the market, and carbon regulations are intensifying," adding, "Reducing greenhouse gases is also an urgent task. Technological innovations like hydrogen reduction steelmaking and zero-carbon power are desperately needed."
He continued, "Enormous budgets are necessary for infrastructure development, but corporations alone find it difficult to shoulder the burden," stressing, "We will strive for the rapid passage of the bill in the National Assembly."
The K-Steel Act (Special Law for Strengthening the Competitiveness of the Steel Industry and Transitioning to Green Steel Technology) has formed a consensus between the ruling and opposition parties, indicating that the legislation is expected to gain momentum. Previously, the National Assembly Steel Forum, composed of lawmakers from both parties, jointly proposed the bill on the 4th, stating, "The K-Steel Act is a bipartisan proposal created by lawmakers who care about Korea's industry and economic future, transcending political divisions." The bill has the names of 106 lawmakers from both parties as joint sponsors.
The bill contains provisions for the government to establish a basic plan every five years and an annual implementation plan to strengthen the competitiveness of the steel industry and promote carbon neutrality. It includes the establishment of a special committee under the president to deliberate and coordinate major policies. Moreover, it provides financial support, including subsidies and loans, for the development of green steel technology and the introduction of facilities, as well as tax reductions based on greenhouse gas reduction performances. Additionally, it includes the basis for designating green steel special zones, offering various benefits such as special permits, tax reductions, and infrastructure support.