K-Steel Act to Take Effect Next Month, with Change in the Steel Industry at Stake
The government will implement the “Special Act on Strengthening the Competitiveness of the Steel Industry and Transitioning to Green Steel Technologies” next month. The act includes a transition to carbon neutrality and support for low-carbon technologies, but questions remain about its short-term impact because cuts to industrial electricity rates were excluded and restructuring was left to companies’ discretion.
The government will implement the “Special Act on Strengthening the Competitiveness of the Steel Industry and Transitioning to Green Steel Technologies” next month. The act aims to strengthen the fundamentals of steelmakers, enhance the industry’s competitiveness, and support the transition to low-carbon production. It is set to take effect next month.
The act includes provisions for establishing a master plan for the steel industry’s transition to carbon neutrality and for supporting low-carbon steel technologies. The bill passed a plenary session of the National Assembly last year 11month. Opinions have been gathered through a legislative notice.
Some in the industry have pointed out that measures to cut industrial electricity rates were excluded from the act. The act includes a provision leaving restructuring decisions to companies. Some say this will limit immediate relief from cost pressures.
released by the Ministry of Trade, Industry and Energy, 2025annual export and import trends show that steel product exports last year were down 9.0% year over year, reaching 303billion dollars. This figure shows that the industry’s downturn is continuing. The government says it will strengthen transition support through legislation.
So far this year, 1month and 2month saw exports post 0.1% and -7.8% respectively. 1–2The trend from month to month indicates that a recovery has not taken hold in the short term. The industry has called for additional measures.
3month saw -2.2%, while 4month saw -11.6% export declines. As a result, exports have continued to fall quarter by quarter. Ministry of Industry data reflected the monthly weakness as it stood.
U.S. exports totaled 35billion dollars, while those to the European Union totaled 36billion 5000million dollars. Declining exports to these regions affected overall results. Trade restrictions and tariff measures have been cited as sources of pressure.
Exports to the ASEAN region totaled 48billion 1000million dollars. Last month, steel exports by country totaled 2billion 9000million dollars for the United States, up 21.4% year over year. The European Union and ASEAN both saw declines that month.
Sources: 뉴시스 경제
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