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Key Points

South Korea is preparing a robust response to the European Union's proposed steep cuts in steel import quotas. The EU plans to reduce tariff-free steel imports by 47% and double out-of-quota tariff rates to 50%. Korean trade officials held emergency meetings to discuss potential countermeasures and support for the domestic steel industry. The situation highlights the growing tensions in international trade and the strategic importance of steel exports for South Korea.

Key Points: S Korea Challenges EU Steel Import Quota Cuts

  • S Korea's steel industry faces significant EU import quota challenges
  • Government pledges comprehensive strategy to protect trade interests
  • EU plans to double out-of-quota tariff rates to 50%
  • Domestic steelmakers demand swift government-level intervention
2 min read

S. Korea vows all-out response to EU's plan to cut steel import quotas

South Korean government vows robust response to EU's proposed 47% reduction in steel import quotas, protecting crucial export market

"Close cooperation with affiliated agencies is crucial - Kim Jung-kwan, Industry Minister"

Seoul, Oct 10

The South Korean government on Friday pledged to take all available steps in response to the European Union (EU)'s proposal to sharply reduce tariff-free steel import quotas and increase duties on out-of-quota shipments.

Possible measures were discussed during an emergency meeting presided over by Vice Trade Minister Park Jong-won, the Ministry of Trade and Industry said, following the announcement by the European Commission, which handles trade matters for the EU. The EU is South Korea's second-largest export market for steel products.

The ministry said domestic steelmakers, who took part in Friday's meeting, called for a swift and robust government-level response to the EU's move, reports Yonhap news agency.

Participants also urged the government to expand support for the industry's transition toward low-carbon and high value-added products, calling it essential for the long-term structural improvement amid heightened global competition.

Under its proposal, the EU plans to cut its annual tariff-free steel import quota by 47 percent to 18.3 million tons. In addition, the out-of-quota tariff rate will be doubled from the current 25 percent to 50 percent.

The EU currently operates a safeguard mechanism that imposes a 25 percent tariff on steel imports exceeding established quotas. The system is set to expire in June 2026, and the new proposal would effectively replace it, pending approval by EU member states.

Meanwhile, Industry Minister Kim Jung-kwan met with the heads of key industry ministry-affiliated agencies on Friday and asked for their cooperation to thoroughly implement the government's key policy priorities.

"Close cooperation with affiliated agencies is crucial for the Ministry of Trade and Industry to successfully accomplish the government's five policy priorities," Kim said during the meeting held in central Seoul, as he noted changes following the government's reorganization that took effect on Oct. 1.

Under the reorganization, the energy departments of the industry ministry, as well as 21 government-affiliated agencies, have been transferred to the new energy ministry for the first time in 32 years.

Its name also changed from the Ministry of Trade, Industry and Energy to the Ministry of Trade and Industry.

- IANS

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Reader Comments

R
Rohit P
Interesting how South Korea is responding proactively. Indian steel industry should learn from this - we need to focus more on high-value products rather than just volume. The transition to low-carbon steel is the future! 🔥
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Sarah B
While I understand South Korea's concerns, the EU has the right to protect its industries too. The 47% quota cut is quite drastic though. Hope both sides can find a balanced solution through negotiations.
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Arjun K
This shows why India needs strong FTAs with multiple countries. Over-dependence on any single market can be risky. Our trade ministry should take note and diversify our export destinations. Jai Hind! 🇮🇳
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Karthik V
The doubling of out-of-quota tariffs to 50% is really harsh! This could seriously impact Korean steel companies. Makes me worried about similar moves affecting Indian exports. Our government should be prepared.
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Michael C
Respectfully, I think South Korea's response is appropriate but they should also consider why the EU is taking this step. Sometimes trade protection measures are needed to support domestic industries and workers.
D
Divya L
Good to see the Korean government acting quickly with emergency meetings. This is how responsive governance should work. Hope our Indian ministries are also monitoring such global trade developments closely.

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