Seoul: The industry ministry has expressed concerns over Britain's protectionist new steel trade measure, arguing that the move could be in potential violation of a bilateral free trade agreement (FTA) with South Korea. The Ministry of Trade, Industry and Resources issued such a position late Thursday after the British government announced a plan to reduce its overall quota levels for steel imports by 60 percent and impose a 50 percent tariff on shipments exceeding those quotas starting in July.

According to Yonhap News Agency, the ministry stated that such a measure amounts to an effective extension of the existing steel safeguard scheme and could be in violation of World Trade Organization rules, as well as the Korea-Britain FTA, which provides for a tariff-free steel trade. Authorities will hold close consultations with London and actively respond to the matter to minimize damage to Korean companies, it added.

Britain accounts for 2.3 percent of South Korea's overall steel exports, as reported by the ministry. The new trade measure is seen as a significant concern for South Korea's steel industry, prompting Seoul to seek diplomatic and trade discussions with Britain to address the potential impacts on its steel exports.