Seoul: The government has announced new measures to assist the steel industry in transitioning to high-value, eco-friendly products. This initiative, revealed by the industry ministry, aims to address the ongoing challenges of global oversupply and increasing trade protectionism affecting this ailing sector.

According to Yonhap News Agency, the strategic road map was disclosed during a ministers' meeting focused on economic issues. The plan includes supporting steelmakers in adjusting production capacities for oversupplied items like structural steel and steel pipes, contingent upon their commitment to responsible management. The Ministry of Trade, Industry and Resources highlighted these efforts as part of the broader strategy to enhance the competitiveness of the steel industry.

The government also intends to strengthen its response to protectionist measures from major economies, such as the 50 percent tariffs imposed by the United States on steel imports and the European Union's proposed new safeguard measures. In parallel to ongoing negotiations, Korea will implement a support package for exporters introduced in September to mitigate the impact on local firms.

This September, the government announced an emergency financial aid package of up to 570 billion won (approximately US$398 million) for 2023. This includes special low-interest loans and trade insurance aimed at steel and aluminum companies affected by tariffs. Expanding on these measures, the government plans to introduce a 400 billion-won guarantee program for steel exports and a 150 billion-won support program for derivatives of steel, aluminum, and copper.

Additionally, the ministry is committed to fostering investment in future growth areas for the steel sector, such as special carbon steel, and supporting the integration of artificial intelligence technology. The government will also advance the green transition of the industry by promoting the development of hydrogen-based steelmaking technology.