Posted on 04 Nov 2025
The government will reduce facilities for universal steel products such as rebar and shaped steel, where oversupply has intensified, and push for large-scale investments in future sectors like special carbon steel and hydrogen reduction steelmaking.
The Ministry of Trade, Industry and Resources announced the "Steel Industry Advancement Plan" at the Economic Ministers’ Meeting and the Industrial Competitiveness Strengthening Ministers’ Meeting on the 4th. This measure aims to improve the domestic steel industry’s structure, which has been shrinking due to global oversupply and carbon reduction pressures, and transition the industry toward high value-added and low-carbon production.
The government will first begin adjusting facility scales, focusing on oversupplied items like rebar and shaped steel. In particular, it will encourage voluntary facility reductions for rebar, which has a low penetration rate of imported materials, by linking the business restructuring process under the "Corporate Vitality Act" with tax incentives. If necessary, the government will review enacting a "Special Steel Act" after consulting the National Assembly. For shaped steel and steel pipes, it will support autonomous market adjustments, while for hot-rolled, cold-rolled, and galvanized steel sheets, it will first address imported materials before reviewing phased production cuts.
To shift away from a universal steel-centered industrial structure, the government will also pursue future investments centered on three pillars: special carbon steel, AI (artificial intelligence), and hydrogen reduction steelmaking.
By 2030, it plans to conduct 200 billion Korean won in R&D (research and development) for 10 core special carbon steel items, aiming to raise the market share of high value-added new materials—such as high-manganese steel for LNG, liquefied natural gas, ships, lightweight automotive steel sheets, and special steel for defense and aerospace—from the current 12% to 20% by 2030.
Additionally, it will develop steel-specific AI models through the "AI Factory Alliance," which includes POSCO, KG Steel, and Daehan Steel, and establish an AI verification system across the entire steel industry lifecycle by 2026.
For low-carbon transition, the government will begin the "Korean Hydrogen Reduction Steelmaking Demonstration Project," with a total project cost of 8.1 trillion Korean won, to commercialize technology that drastically reduces carbon emissions.
It will also strengthen responses to the global trade environment. The government plans to hold bilateral consultations on issues such as the U.S.’s 50% steel tariff and the EU’s proposal to convert safeguards into TRQs (tariff-rate quotas), while implementing follow-up measures to resolve export companies’ difficulties. In particular, based on the "Follow-up Support Measures for U.S. Tariff Negotiations" announced in September, it will establish a 400 billion Korean won "Steel Export Supply Chain Strengthening Guarantee Product" and a 150 billion Korean won "Secondary Guarantee Project for Steel, Aluminum, and Copper Derivatives" to improve policy financing accessibility for related companies.
Efforts to block unfairly imported steel will also be strengthened. Starting next year, quality inspection certificates (MTCs) for imported steel will be mandatory to enhance quality verification with steel-producing countries, and regulations against circumvention dumping—such as avoiding anti-dumping duties through third countries or bonded zones—will be tightened.
An industry ministry official said, "We will use this plan as a turning point for the steel industry’s new leap, proactively responding to structural crises and promoting future competitiveness."
Source:The Chosun Daily
