Foundations will be laid to create a domestic low-carbon steel market through a low-carbon steel certification system and a low-carbon steel special zone. A designation system for specialized companies that process recycled iron resources will also be implemented to improve the quality of steel scrap and ensure a stable supply.
The Ministry of Trade, Industry and Resources said on the 9th that an enforcement decree for the Special Act on Strengthening Competitiveness of the Steel Industry and Transition to Carbon Neutrality (Steel Industry Act) with these provisions was approved at a Cabinet meeting. The decree stipulates matters delegated by the Steel Industry Act enacted in Dec. last year and will take full effect starting on the 17th.
The enforcement decree includes details such as: ▲ composition and operation of the Special Committee for Strengthening Competitiveness of the Steel Industry ▲ standards and procedures for low-carbon steel certification ▲ requirements and procedures for designating low-carbon steel special zones ▲ requirements and procedures for designating specialized companies that process recycled iron resources ▲ standards and procedures for joint conduct and information exchange to apply exceptions under the Fair Trade Act.
The Special Committee for Strengthening Competitiveness of the Steel Industry, chaired by the Chairperson, the Prime Minister, will comprise Minister-level officials from related ministries, including the Ministry of Economy and Finance, Ministry of Education, Ministry of Science and ICT, Ministry of Trade and Industry (MOTI), and Ministry of Climate, Energy and Environment, along with civilian members recommended by industry, academia, labor, and research institutions. The committee will deliberate on major policies, including establishing five-year basic plans and revising related laws and systems.
Low-carbon steel certification sets the standards announced by the Minister of the Ministry of Trade and Industry (MOTI), based on greenhouse gas emissions and reductions, as the certification criteria, and defines application and review procedures and the scope of work for certification bodies. For designation as a low-carbon steel special zone, requirements include the effects of industrial agglomeration and strengthened competitiveness, as well as the feasibility of securing necessary infrastructure.
Designation of specialized companies that process recycled iron resources is defined with requirements on holding land, facilities, and equipment, supporting improved quality and a stable supply base for steel scrap, a key raw material for carbon neutrality. It also includes procedures for approving joint conduct by companies with approved business restructuring and guidelines for prior reporting when exchanging information, supporting the industry's swift business restructuring.
An official at the Ministry of Trade and Industry (MOTI) said, "As a legal foundation has been laid to fundamentally strengthen the competitiveness of the steel industry, we will work closely with related ministries and promptly push ahead with the policy tasks under the law."