Pohang: The government will consider designating Pohang, a major hub of South Korea's steel industry, as a special zone requiring a preemptive response to a possible industrial crisis caused by U.S. tariffs and a global oversupply, officials said Thursday.
According to Yonhap News Agency, Oh Seung-cheol, deputy minister of industries and enterprises at the industry ministry, stated in a meeting with six steelmakers based in Pohang that the government will swiftly review the designation of the city as a preemptive industrial crisis zone. This consideration comes in light of the current challenges faced by the city and businesses in the region.
Yoon In-dae, a senior official at the finance ministry, indicated that the government plans to devise support measures for the steel industry through collaboration with relevant agencies. This initiative is crucial as Korean steel manufacturers confront mounting difficulties due to U.S. President Donald Trump's administration imposing a 50 percent tariff on all steel imports and the oversupply of cheap steel products worldwide.
During the meeting, companies such as POSCO Holdings Inc. and Hyundai Steel Co. emphasized the need for the government's continued efforts to protect the domestic industry from the substantial impact of these tariffs. Additionally, they requested active government support for their research projects. These projects aim to develop technologies for carbon emission reduction, energy efficiency, and artificial intelligence transformation, which are vital for strengthening the global competitiveness of the Korean steel industry.