The Special Act on Strengthening Competitiveness in the Steel Industry and Transition to Green Steel Technology (K-Steel Act), aimed at supporting the domestic steel industry, cleared the subcommittee of the National Assembly's Trade. Industry Energy. SMEs. and Startups Committee. As the K-Steel Act is being pushed as a party platform by both the ruling and opposition parties, the legislation is expected to gain momentum.
The National Assembly's industry committee held the Subcommittee on Trade, Industry and Intellectual Property on Nov. 19 and approved the K-Steel Act. The K-Steel Act is scheduled to be introduced at the full meeting of the industry committee on Nov. 21.
The K-Steel Act is regarded as a representative "bipartisan cooperation bill." Uh Gi-gu of the Democratic Party of Korea, a native of Dangjin, South Chungcheong, and Lee Sang-hwi of the People Power Party, a native of Pohang, North Gyeongsang, who serve as co-chairs of the National Assembly Steel Forum, jointly introduced the bill. A total of 106 lawmakers from both parties took part in the bill. Both parties stated in August that they would push the K-Steel Act as a party platform.
The bill calls for the government to establish mid- to long-term plans to support strengthening the competitiveness of the steel industry. It creates the Special Committee on Strengthening Competitiveness in the Steel Industry, chaired by the President as the Chairperson, and establishes a basic plan every five years and annual action plans. Tax support measures are also included. It also includes provisions for the government and local governments to support corporations in research and development of carbon-neutral technologies and in securing facilities.
The ruling and opposition parties plan to use the K-Steel Act to support the steel industry, which faces a double whammy of U.S. steel tariffs of up to 50% and a flood of low-priced Chinese imports.
Kim Byung-kee, the Democratic Party floor leader, said in August while announcing that the K-Steel Act would be pushed as a party platform, "The steel industry is the foundation of manufacturing and a pillar of the national economy." In the same month, Song Eon-seog, the People Power Party floor leader, also said, "We will help ease the burden stemming from research and development and the expansion of production facilities in the steel industry, which has come to face high tariffs."