President Yoon Requests EU to Avoid Disadvantages for Korean Steel Industry

President Yoon Suk Yeol has urged the European Union (EU) to ensure that Korean companies do not face disadvantages under the new steel quota system.

Kim Yong-beom, the Chief of Policy at the Blue House, stated during a briefing in Rome on June 11 that President Yoon made this request during a meeting with António Costa, the President of the European Council, and Ursula von der Leyen, the President of the European Commission, in Brussels the previous day.

The EU has announced plans to transition its current steel quota system, based on World Trade Organization (WTO) guidelines, to a tariff-rate quota (TRQ) system starting July 1, in response to global oversupply in the steel market.

Under the new system, the EU's duty-free steel import quota will decrease, and tariffs on quantities exceeding the quota will rise from the current 25% to 50%.

Specifically, the introduction of the TRQ system will reduce the duty-free steel import volume from the current 33.82 million tons to approximately 18.35 million tons, a reduction of about 46%.

Last year, the EU was Korea's second-largest steel export market, importing 3.24 million tons and allocating a duty-free quota of about 2.58 million tons.

President Yoon also explained that the EU's measures could have broad implications not only for the steel industry but also for industrial cooperation, supply chain stability, investment, and employment between the two countries.

He emphasized the need for outcomes that reflect the mutually beneficial economic cooperation established through the Korea-EU Free Trade Agreement (FTA) and the strategic partnership between the two nations.

He requested that the EU adjust interests not only in steel but also in other areas to ensure that the mutual benefits of the Korea-EU FTA are not undermined.

In response, the EU stated, "Korea is a country that shares common values and is a strategically important partner, so we will consider the request as much as possible."

Kim noted that, following the guidance of the two leaders, intensive negotiations on quota volumes have made significant progress, and he expects favorable results compared to other countries.

He added, "This will serve as a good example of productive cooperation among partners with similar positions."