SEOUL, South Korea has announced plans to overhaul its steel industry as the sector grapples with growing challenges from international tariffs and persistent oversupply, the Ministry of Trade, Industry and Energy said on Tuesday.
According to the ministry, the restructuring initiative will focus on improving the industry’s overall competitiveness and resilience amid mounting global trade pressures. The United States and the European Union have recently imposed higher tariffs on steel imports, placing added strain on South Korean producers who are already contending with declining margins and weaker global demand.
The ministry said the government will take pre-emptive measures to adjust production capacity for steel products facing excess supply, in an effort to stabilise prices and improve operational efficiency across the sector. In addition, financial aid and policy support will be expanded to help exporters mitigate the impact of tariffs and maintain access to key international markets.
Authorities are also considering targeted investments in advanced steelmaking technologies and environmentally sustainable production methods to help local companies transition toward greener and higher-value products.
“The restructuring plan aims to ensure the long-term stability and competitiveness of Korea’s steel industry, particularly in light of global market changes and trade barriers,” the ministry said.
Industry observers note that South Korea, one of the world’s top steel exporters, has been under increasing pressure to adapt as the global market faces slower growth and heightened protectionism. The government’s move is seen as a step toward balancing industrial capacity while fostering innovation and sustainability within the steel sector.
