Seoul: South Korea has been allocated a quota of 2.07 million tons under the European Union (EU)'s new safeguard measures on steel imports, marking a reduction of about 20 percent from the previous level, the trade ministry announced Tuesday. However, this decrease is smaller compared to the overall reduction implemented by the EU.

According to Yonhap News Agency, the new allocation represents a decline from the previous quota of 2.58 million tons, which was in place from July 2025 to June this year. The EU is set to significantly cut tariff-free quotas on 30 steel products while increasing the tariff rate to 50 percent for imports exceeding these quotas. These measures are aimed at addressing global steel overcapacity and will take effect Wednesday.

The EU's total tariff-free quota will be reduced to 18.35 million tons, down 46 percent from the earlier figure of 33.82 million tons. Despite the overall reduction, South Korea's decrease in quota was limited to 19.7 percent, indicating efforts to protect local steelmakers' market access in the EU.

Trade Minister Yeo Han-koo emphasized the country's efforts, stating, "South Korea has utilized all available channels to help local steelmakers export even one more ton of steel to the EU market." He further highlighted that, given the ongoing global steel oversupply and tightened import regulations, the government will proactively work to ensure that domestic companies maintain stable market access and competitiveness abroad.

In addition to the allocated quota, South Korea can access an additional 1.47 million tons through competition with other countries. The trade ministry plans to collaborate with local businesses to maximize their share of this shared quota.