South Korea Prepares for EU's New Steel Import Regulations

As the European Union (EU) prepares to implement its new steel import management system in two weeks, the South Korean government and steel industry are ramping up efforts to secure export volumes to the EU. The EU plans to reduce its duty-free import quota by nearly half, making it crucial for the domestic steel sector to minimize the impact on market access.

On June 16, the Ministry of Trade, Industry and Energy held a meeting at the Seoul Chamber of Commerce and Industry, led by Han Young-gu, head of the Trade Negotiation Headquarters, to review the status of Korea-EU steel quota negotiations and discuss response strategies with representatives from the Korea Iron and Steel Association and major steel companies.

The EU is set to replace its global steel safeguard measures, which have been in place since 2018, with a new steel import management system starting July 1. This new system will allow duty-free imports for a specified volume of 30 steel product categories, while imposing a 50% tariff on imports exceeding that volume.

Notably, the total duty-free import quota allowed by the EU is expected to decrease from the current 33.82 million tons to 18.35 million tons, a reduction of approximately 46%. This is anticipated to intensify competition among major steel-exporting countries for securing quotas.

The EU is South Korea's second-largest steel export market. Following the tightening of steel trade barriers in the United States last year, there are concerns within the industry that increased import regulations from the EU could further complicate efforts to diversify export markets. The steel sector is currently focusing on defending its market share in Europe, particularly for high-value products such as automotive steel plates and energy plates.

Since April, the South Korean government has been conducting high-level and technical negotiations with the EU, advocating for stable market access for Korean steel products. Officials have emphasized that South Korea contributes to the stability of the European manufacturing supply chain and is actively participating in efforts to resolve global steel oversupply.

During the meeting, participants exchanged views on the impact of the new measures on specific product exports, on-site challenges, and future response strategies. Attending companies requested that their opinions be continuously reflected in the negotiation process and urged proactive measures to secure market access volumes.

Han stated, "The EU's new steel measures are a significant issue that could directly affect our steel industry's exports, investments, and employment. The government is making every effort to reflect our industry's interests through diplomatic channels, high-level consultations, and technical negotiations."

He added, "As negotiations enter their final stages, we will do our utmost to secure our steel industry's legitimate interests and market access until the very last moment."