South Korean Industry Minister Kim Jung-kwan has stated that the South Korean government will seek to create new domestic demand for steel products to support its steel industry following the European Union’s implementation of stricter steel import measures, according to South Korean media reports.
Mr. Kim chaired a meeting with representatives of domestic steelmakers in Seoul to discuss measures to mitigate the impact of the EU’s new steel safeguard regime, according to the ministry of trade, industry and resources.
EU safeguard measures reduce South Korea’s quota
The EU’s new safeguard system, which entered into force on Wednesday, July 1, reduces the bloc’s overall tariff-free steel import quota by 46 percent, to 18.35 million mt from 33.82 million mt. South Korea received a country-specific quota of 2.07 million mt, representing a 19.7 percent reduction from the previous allocation.
Kim said the EU’s decision reflects global steel overcapacity and increasing protectionist trade measures, warning that similar developments could continue in the future.
Government targets more than 510,000 mt of new steel demand
The ministry noted that steel products originally destined for the EU market could be redirected to other export markets, intensifying competition in those regions. To mitigate the impact, the government plans to strengthen supply chain cooperation among steelmakers, shipbuilders, defense companies and renewable energy businesses to generate new domestic demand for steel.
According to Kim, these measures, together with efforts to eliminate unfair imports of raw materials, could create demand for more than 510,000 mt of steel, exceeding the reduction in South Korea’s EU tariff-free quota. The ministry added that South Korea will continue discussions with EU authorities to maintain supply chain cooperation and mutual benefits under the bilateral free trade agreement.