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| South Korea K Steel Act |
South Korea Enacts K-Steel Act to Boost Competitiveness
South Korea passed the K-Steel Act to support domestic steel producers and enhance global competitiveness.
The law mandates five-year master plans and annual action plans led by the Minister of Trade, Industry, and Energy. Meanwhile, a special committee under the Prime Minister oversees key decisions.
Key Measures and Industry Reactions
The K-Steel Act promotes low-carbon steel technologies, green steel zones, and strengthened scrap supply chains.
However, the law excludes electricity subsidies, disappointing producers aiming to switch to electric arc furnaces. The Korea Iron and Steel Association expects faster implementation of government steel development plans.
Meanwhile, steel companies warn that rising electricity tariffs and emission permit costs could add up to 1 trillion won annually. The government’s support package includes a 400 billion won export guarantee and 150 billion won for steel, aluminum, and copper product firms.
ScrapInsight Commentary
The K-Steel Act provides a solid legal framework for South Korea’s steel competitiveness and green transition.
Excluding electricity subsidies may limit full decarbonization potential, while export guarantees can enhance global market resilience. Strategic planning and scrap utilization will be key to cost-effective implementation.
