South Korea will unveil a steel industry advancement plan this month, including measures for production cuts and facility adjustments, as global trade barriers tighten and oversupply from China persists, according to the local media reports.
Vice Minister of Industry and Trade Moon Sin-hak said the plan, prepared jointly with related ministries, will address strategies by product type to counter global oversupply and strengthen defenses against unfair imports. This comes just seven months after the government’s first steel industry measure in March, reflecting growing pressure on domestic producers from U.S. tariffs, weak construction demand, and competition with Chinese exports.
The policy is expected to focus on reducing output of low value-added products such as rebar, structural steel, and plates, while promoting high value-added specialty steel. Similar to restructuring efforts already announced in the petrochemical sector, the plan will emphasize facility adjustment, financial stability, and minimizing local economic impacts.
Exports remain under pressure, with steel product exports down 6.8pct YoY in January-August 2025. The EU, Korea’s largest steel export market, plans to cut tariff-free quotas by 47pct and double out-of-quota duties to 50pct. The U.S. has imposed a 50pct tariff on steel products, while India has mandated priority use of domestic steel in public projects.
While large-scale forced closures are unlikely, the government aims to support the industry’s transition to higher-value products. Planned initiatives include USD 290 mln export guarantee program in cooperation with financial institutions. Authorities will also pursue consultations with the EU to mitigate the impact of new quota restrictions under the FTA framework.
