The South Korean government has declared it will take all necessary steps to protect domestic steel companies ahead of the European Union's new steel import regulation. The regulation is expected to come into effect on July 1 and aims to limit global excess capacity.
Trade Minister Yeo Han-koo stated in a meeting with representatives of domestic steel companies that the new EU steel policy is a critical issue that could directly affect the sector's exports, investments, and employment. The minister noted that the government is in the final stages of negotiations to safeguard the legitimate interests and market access of South Korean companies.
According to the EU plan, the duty-free quota on 30 steel products will be significantly reduced. The tax rate applied to imports outside the quota is also expected to increase to 50%.
The new system is anticipated to have adverse effects on South Korean companies. The EU's duty-free steel import quota is projected to drop from the current 33.8 million tons to 18.3 million tons.
Seoul and Brussels have been discussing the details of the steel quotas since April. While talks continue, the South Korean administration is closely monitoring the process to maintain companies' positions in the European market.
Yeo Han-koo highlighted that South Korean companies might face additional trade measures such as tariff increases, safeguard measures, and anti-dumping duties in other parts of the world. The minister emphasized the need to strengthen fair trade practices and transparency to prevent unnecessary barriers in exports.
The changes in the EU's steel policy are not seen merely as a regional issue for South Korea's export-driven industrial structure. With negotiations nearing completion, the Seoul administration is striving to address both the sector's concerns and the conditions for market access in Europe.
