South Korea has introduced the “K-Steel Act,” a bipartisan bill aimed at revitalizing its steel industry amid rising global challenges, including a 50pct U.S. tariff on Korean steel and increased competition from low-cost Chinese imports.
Backed by 106 lawmakers, the bill positions steel as a strategic sector essential to national security and economic stability. It warns that a shrinking domestic steel base could harm key industries like shipbuilding and electric vehicles.
Despite a recent tariff deal reducing most U.S. duties to 15pct, Korean steel remains subject to the full 50pct tariff. Meanwhile, the EU’s incoming Carbon Border Adjustment Mechanism threatens additional costs unless Korean producers accelerate decarbonization.
Modeled after industrial policies in the U.S., EU, and Japan, the K-Steel Act outlines a long-term strategy centered on government-led planning. It proposes a presidential committee to draft five-year master plans and annual roadmaps.
The bill includes financial incentives such as subsidies, tax breaks, low-interest loans, and cost support for companies investing in low-emission and hydrogen-based technologies. It also proposes “green steel zones” to streamline permits and attract investment.
To reinforce trade defenses, the legislation calls for stricter rules of origin, tougher action on low-quality imports, and expanded authority to counter unfair practices. It also allows government intervention, including temporary antitrust exemptions, to support restructuring when needed.
