The South Korean government has unveiled a comprehensive plan to protect its steel industry from mounting trade risks. (Image courtesy of POSCO)
SEOUL, March 20 (Korea Bizwire) — The South Korean government has unveiled a comprehensive plan to protect its steel industry from mounting trade risks, including the recent 25% tariff imposed by the Trump administration in the United States and an influx of low-cost Chinese steel.
The Ministry of Trade, Industry and Energy announced on Wednesday a multi-agency strategy to counter unfair imports and safeguard domestic producers. The plan includes tightening oversight on “third-country circumvention” — a practice in which products subject to anti-dumping tariffs are minimally processed in another country and then re-exported under a new country of origin.
To close this loophole, the government plans to revise customs regulations to include minor modifications made in third countries as part of anti-circumvention investigations. Until now, these measures only applied to alterations within the country of origin.
South Korea has already imposed anti-dumping duties on Chinese H-beams (up to 32.72%) and heavy plate steel (up to 38.92% pending final confirmation), but industry sources note that rerouting via countries like Vietnam and Thailand has undermined the effectiveness of these penalties.
Under the new measures, importers will also be required to submit mill test certificates (MTCs) verifying the origin of crude steel production. Additionally, crackdowns will intensify on companies disguising foreign steel as domestically produced before re-exporting.
The government’s response is not only aimed at defending domestic industry but also at alleviating U.S. concerns about potential Chinese steel backdoor exports through South Korea. During a meeting on March 15, Jamieson Greer, a senior official from the U.S. Trade Representative’s office, reportedly raised the issue with Jeong In-kyo, South Korea’s trade negotiation chief.
“There’s a suspicion that while Korea is meeting its 2.63 million-ton U.S. export quota with domestic products, domestic demand is being increasingly filled by Chinese imports,” a government official explained.
Jang Sang-sik, head of international trade at the Korea International Trade Association, warned that small and mid-sized suppliers to industries like home appliances and auto parts could face price pressure from U.S. buyers in the wake of tariffs. “Policy support for these smaller exporters should be prioritized,” he said.
The government will soon launch an emergency survey to assess the tariff impact on smaller exporters and roll out support measures. It also plans to unveil a long-term strategy this year to advance the steel industry by focusing on low-carbon, high-value-added steel products to remain competitive in shifting global markets.
Ashley Song (ashley@koreabizwire.com)
