South Korea’s steel industry is set to receive a major boost after Industry Minister Kim Jung-kwan announced a KRW 400 billion ($286.83 million) export guarantee program to shield the country’s steel industry from the impact of steep US tariffs, according to media reports. The initiative comes as the sector struggles amid high US tariffs and declining exports, threatening both corporate competitiveness and regional economies.
Details of export guarantee
The minister explained that the new program will be jointly supported by the government, financial institutions, policy lenders, and steelmakers themselves. He described the plan as creating an economic effect equivalent to KRW 400 billion in backing, helping the sector maintain stability while also addressing unfair import practices.
Alongside financial backing, Mr. Jung-kwan pledged further measures, including:
- Continued negotiations with Washington to reduce tariff burdens.
- Stronger efforts to block unfair imports that threaten domestic producers.
- Regional support programs to ease the economic strain on steel-dependent areas.
- Legislative cooperation with the National Assembly to bolster industrial policy.
At the same time, the government has secured an agreement with Washington to lower tariffs to 15 percent, in exchange for a $350 billion South Korean investment pledge in the US.
The Bank of Korea has warned that US trade policies could shave 0.45 percentage points off South Korea’s economic growth this year. The central bank noted that, while the effects were cushioned in the first half of the year by stockpiling and early exports, the full impact is likely to become clearer in the months ahead.