**Support for Steel Industry Facing Dual Challenges of US Tariffs and Chinese Competition**
The bill to support the domestic steel industry, known as the ‘Special Act on Strengthening Steel Industry Competitiveness and Transition to Green Steel Technology (K-Steel Act),’ has cleared the subcommittee stage of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee. Since both ruling and opposition parties are pushing the K-Steel Act as part of their party platforms, it is expected that the legislation process will accelerate.
On the 19th, the Trade, Industry, Energy, and Intellectual Property Subcommittee convened and passed the K-Steel Act. The bill is slated to be submitted to the full committee meeting on the 21st.
The K-Steel Act is regarded as a representative ‘bipartisan cooperation bill.’ It was jointly proposed by Eo Gi-gu, a Democratic Party representative from Dangjin, South Chungcheong Province, and Lee Sang-hwi, a People Power Party representative from Pohang, North Gyeongsang Province, who are both co-chairs of the National Assembly Steel Forum. A total of 106 members from both parties participated in the proposal. In August, both parties expressed their intention to push the K-Steel Act as their party policy.
The bill includes provisions for the government to formulate and support long-term plans to enhance the competitiveness of the steel industry. It proposes the establishment of a ‘Special Committee on Strengthening Steel Industry Competitiveness’ chaired by the President, and the creation of a basic plan every five years along with annual action plans. Tax support measures are also included. Furthermore, it contains provisions for government and local authorities to support companies in research and development of carbon-neutral technology and the establishment of necessary facilities.
Through the K-Steel Act, both parties intend to support the beleaguered steel industry, facing dual challenges of steep US tariffs, which are as high as 50%, and the inundation of low-priced Chinese steel.
Kim Byung-gi, the Democratic Party’s floor leader, announced that the K-Steel Act would be pursued as party policy in August, saying, “The steel industry is the backbone of manufacturing and a pillar of the national economy.” In the same month, Song Eon-seok, the People Power Party’s floor leader, stated, “We aim to alleviate the burden stemming from research and development and the expansion of production facilities in the steel industry, which is subject to high tariffs.”