With South Korea's duty-free export quota reduced due to the implementation of the EU's new steel measures, the government has activated a response system aimed at minimizing the burden on the industry by creating domestic demand and blocking unfair imports.

Minister of Trade, Industry and Energy Kim Jeong-kwan held an emergency meeting with the steel industry at the Korea Trade Insurance Corporation on the 1st.

As the EU's steel safeguard measures expired on June 30, the EU implemented new steel measures to replace them starting on that day.

The total duty-free import quota for the EU decreased by 46% from the existing 33.82 million tons to 18.35 million tons.

Korea's national quota decreased by 19.7% from the existing 2.58 million tons to 2.073 million tons, and the Ministry of Trade, Industry and Energy stated that the reduction of 510,000 tons is relatively limited compared to other major countries.

Industry officials attending the meeting shared the impact on exports by product category and anticipated difficulties in customs clearance and logistics, and requested prompt government support during the initial implementation phase of the system.

The Ministry of Trade, Industry and Energy plans to launch a trade difficulties response team in collaboration with the Korea Iron & Steel Association, the Korea International Trade Association, and KOTRA to provide support for △system guidance △shipping and customs clearance response △and consultation on local difficulties.

Minister Kim stated, “I will personally step forward to consult with the EU on necessary matters.”

The Ministry of Trade, Industry and Energy is strengthening supply chain cooperation between the steel industry and major downstream industries such as shipbuilding, defense, and renewable energy, while simultaneously taking measures against circumvention dumping by institutionalizing the submission of information on crude oil countries regarding imported steel and strengthening the management of bonded factories.My plan is to respond.

Minister Kim emphasized, “We will create domestic demand of over 510,000 tons, the amount of the quota reduction, through inter-industry linkages and blocking unfair imports.”

The Ministry of Trade, Industry and Energy is not limiting itself to short-term responses but is also simultaneously pursuing productivity enhancement through the transition to high value-added, low-carbon production and the Manufacturing AI Transformation (M.AX).

Minister Kim noted that this measure emerged amidst a trend of protectionism among countries due to the global steel oversupply, and mentioned that there is a possibility that similar changes in the trade environment will recur.

Based on the industry opinions discussed today, the Ministry of Trade, Industry and Energy plans to promptly announce countermeasures for the implementation of EU quotas in collaboration with relevant ministries.