Pohang: The government has announced the introduction of a new export guarantee program valued at approximately 400 billion won (US$290 million) aimed at supporting the steel industry, which is currently grappling with significant tariffs imposed by the United States. This was stated by Industry Minister Kim Jung-kwan during a meeting with top executives of major steel companies, including POSCO, in the southeastern city of Pohang.
According to Yonhap News Agency, the U.S. administration of President Donald Trump had initially imposed 25 percent tariffs on steel and aluminum imports, which were subsequently increased to 50 percent in June. Minister Kim emphasized that the government, in collaboration with steelmakers, financial institutions, and policy lenders, will develop a guaranteed scheme to reinforce the steel industry's supply chains. This initiative is expected to generate an economic impact equivalent to the support of about 400 billion won.
The minister further committed to maintaining dialogue with Washington to seek tariff relief. Additionally, he promised to implement follow-up support measures for the industry and to intensify efforts to prevent unfair imports. The government plans to address the regional economic challenges caused by the steel sector's issues by collaborating with the National Assembly on legislation to strengthen the industry.
The aggressive tariff policy by Washington has adversely affected domestic steelmakers, resulting in a more than 25 percent decline in exports on a year-on-year basis in July.