How is South Korea adjusting its steel export strategy after EUs new import tariff measures?

• • Steelmakers seek govt support on quota management, shift in trade patterns

• • Product-specific strategies, customs clearance timings gain importance

SteelDaily:The South Korean government has begun reviewing export conditions to the EU and operational challenges faced by domestic steelmakers following the implementation of the European Union’s new steel trade measures this month.

The Ministry of Trade, Industry, and Energy (MOTIE) said Trade Minister Yeo Han-koo visited Hyundai Steel’s Dangjin steelworks in South Chungcheong Province on 13 July to assess the impact of the EU’s new steel measures on exports and discuss response strategies with industry representatives.

The meeting was organised to review how the quota arrangements secured through negotiations with the EU are being implemented and to ensure they translate into actual export opportunities. Officials and industry participants discussed the use of Korea-specific country quotas and residual global quotas, export conditions for individual steel products, operational difficulties, and responses to steel import restrictions imposed by the United States, the United Kingdom, and Canada, as well as the EU’s Carbon Border Adjustment Mechanism (CBAM).

Quota management becomes crucial amid tighter import regime:

The EU’s new steel safeguard regime came into effect on 1 July, replacing the previous global safeguard system. Under the new framework, imports exceeding quota allocations are subject to a 50% tariff, while the total annual tariff-free import quota has been reduced by about 46% to 18.35 million tonnes from 33.82 million tonnes previously.

The South Korean government said it secured a dedicated country quota of 2.073 million tonnes (mnt) through negotiations with the EU. Although this is around 19.7% lower than Korea’s previous country quota of 2.58 mnt, the government said it preserves much of Korea’s market access given the EU’s overall tariff-free quota was cut by about 46%. In addition to the country-specific allocation, Korean exporters can access up to 1.736 mnt under the residual global quota, making product-specific export strategies and careful management of customs clearance timing increasingly important.

Industry seeks stronger coordination on quotas, CBAM:

Industry representatives discussed ways to make more effective use of both the country-specific and residual global quotas, product-level export strategies, customs procedures, and changes in European demand. They also outlined practical difficulties arising from the implementation of the EU’s new measures and called for continued government support. Participants agreed that close cooperation and regular information sharing between the government and industry would be essential to respond to tightening steel import restrictions in major markets and broader changes in the global trade environment, including CBAM.

Trade Minister Yeo Han-koo said the new EU steel measures had significantly changed the export environment and stressed the importance of close cooperation between the government and industry to maximise quota utilisation and respond quickly to operational challenges. He added that the government would closely monitor the implementation of the EU’s new steel regime and continue consulting with the industry while providing necessary support in response to evolving trade measures, including steel import restrictions in major markets and CBAM.

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