Seoul: The South Korean government has pledged to take all available steps in response to the European Union (EU)'s proposal to reduce tariff-free steel import quotas and increase duties on out-of-quota shipments. This decision came after an emergency meeting presided over by Vice Trade Minister Park Jong-won.

According to Yonhap News Agency, the Ministry of Trade and Industry stated that the emergency meeting was called following the announcement by the European Commission, which is responsible for trade matters for the EU. The EU represents South Korea's second-largest export market for steel products, making the proposed changes a significant concern for the country.

During the meeting, domestic steelmakers expressed the need for a swift and robust government-level response to the EU's proposed measures. Participants also urged the government to enhance support for the industry's transition towards low-carbon and high value-added products, emphasizing its importance for the long-term structural improvement amid heightened global competition.

The EU's proposal includes a 47 percent cut in its annual tariff-free steel import quota, reducing it to 18.3 million tons. Additionally, the out-of-quota tariff rate is set to double from the current 25 percent to 50 percent. The EU currently employs a safeguard mechanism that imposes a 25 percent tariff on steel imports exceeding established quotas. This system is scheduled to expire in June 2026, and the new proposal would effectively replace it, pending the approval of EU member states.