Seoul, Nov 4 (NationPress) The government has announced further assistance for the steel sector, aimed at facilitating its transition toward producing high-value and eco-friendly products, as stated by the industry ministry on Tuesday. This initiative is part of the latest efforts to revitalize an industry grappling with global oversupply and increasing trade protectionism.

The strategic outline designed to enhance the steel sector's competitiveness was disclosed during a meeting of economy-related ministers.

According to the Ministry of Trade, Industry and Resources, the government will back steel manufacturers in taking proactive steps to adjust production capacities for products experiencing oversupply, such as structural steel and steel pipes, contingent upon the companies' commitment to responsible management. This information was reported by Yonhap news agency.

Moreover, the government plans to strengthen its response to the protectionist measures imposed by significant economies, including the United States' 50 percent tariffs on all steel imports and the European Union's suggestions for new safeguards.

While negotiations regarding these protectionist measures continue, Korea will diligently implement the support package for exporters introduced in September to mitigate the impact on local businesses, the ministry indicated.

In September, the government announced it would offer up to 570 billion won (approximately US$398 million) in emergency financial aid this year. This assistance includes special low-interest loans and trade insurance for steel and aluminum companies affected by tariffs.

In addition to existing initiatives, the government will establish a new 400 billion-won guarantee program for steel exports, alongside a 150 billion-won support initiative for derivatives related to steel, aluminum, and copper, according to the ministry.

The 400 billion-won fund will be co-established by the steelmaking giant POSCO Group, the Industrial Bank of Korea, and the Korea Trade Insurance Corp.

To guard against the influx of unfairly imported products, South Korea will mandate the submission of mill test certificates for all steel imports starting next year and will tighten regulations to combat circumvention dumping practices.

The ministry also highlighted plans to encourage investment in future growth drivers for the sector, such as special carbon steel, and to support the industry's adoption of artificial intelligence (AI) technologies.

Specifically, around 200 billion won will be directed towards supporting special carbon steel research and development initiatives.

Lastly, the government will advocate for a green transition within the steel sector, advancing the national agenda to develop hydrogen-based steelmaking technology, the ministry added.