On February 11, steel products are stacked at Pyeongtaek Port in Gyeonggi Province following U.S. President Donald Trump’s official announcement of a 25% tariff on all imported steel and aluminum products. (Yonhap)
SEOUL, Feb. 20 (Korea Bizwire) — In a move to curb China’s aggressive low-cost steel exports, the South Korean government has announced plans to impose anti-dumping tariffs of up to 38% on Chinese heavy steel plates.
The decision, made on February 20, comes amid concerns over persistent oversupply from China and the looming impact of U.S. President Donald Trump’s 25% steel tariff policy.
The Ministry of Trade, Industry, and Energy’s Trade Commission recommended imposing provisional anti-dumping duties ranging from 27.91% to 38.02% on Chinese heavy steel plate imports. This follows a complaint filed by Hyundai Steel in July 2024 and a subsequent investigation launched in October 2024.
The South Korean steel industry has been struggling with excess supply from China and weakening global demand since 2023. Domestic heavy steel plate consumption, which remained around 8 million tons from 2021 to 2023, fell below that threshold in 2024 for the first time, reaching 7.8 million tons.
However, imports continued to rise, reaching 2.06 million tons in 2024, up from 1.26 million tons in 2021.
Chinese steel has taken an increasing share of South Korea’s market, with imports surging by 61% from 2022 to 2023, reaching 1.38 million tons last year.
With Chinese steel now accounting for approximately 17% of South Korea’s total heavy plate consumption, the government’s new tariffs are expected to provide relief to domestic manufacturers such as POSCO, Hyundai Steel, and Dongkuk Steel. The local heavy steel plate market is valued at approximately KRW 8 trillion ($5.56 billion).
Hyundai Steel heavy plate production in progress. (Image courtesy of Hyundai Steel)
Chinese heavy plate prices have been significantly lower than domestic alternatives, often by 30-40%. In January 2023, the domestic distribution price stood at KRW 1.05 million per ton, while Chinese imports were priced at KRW 748,000 per ton—a 28.76% discount.
While South Korea’s steelmakers are likely to benefit from the tariffs, some in the steel and trade industries have expressed concerns over potential trade friction with China.
Given the geographical and economic ties between the two nations, there has been caution within the government about taking aggressive trade measures against China. Notably, some South Korean steel firms have been reluctant to file trade complaints against Chinese manufacturers.
Experts caution against interpreting the move as a broad shift toward protectionism. Cho Sung-dae, head of trade research at the Korea International Trade Association, emphasized that the tariffs are a response to specific unfair trade practices rather than a trade war.
“This is about addressing individual cases of unfair competition under WTO principles, rather than a strategic move against China as a whole,” Cho said.
Similarly, Heo Yoon, a professor at Sogang University’s Graduate School of International Studies, noted that while China may react with discontent, outright trade retaliation is unlikely. “China will likely monitor South Korea’s approach to its excess steel supply and engage in discussions with trade authorities before escalating tensions,” he predicted.
M. H. Lee (mhlee@koreabizwire.com)
