During a meeting with reporters on June 22 at the government complex in Sejong, Minister Kim highlighted the achievements of President Yoon Suk-yeol's recent trip to Europe, stating, "We have reached a significant agreement regarding the steel TRQ. While the EU plans to reduce its steel allocation by 46%, the reduction for South Korea is expected to be smaller."
The EU is set to implement new protectionist measures to replace its existing steel safeguards. The plan includes a substantial reduction in TRQ volumes, which impose lower tariffs up to a certain quantity, and an increase in tariffs on quantities exceeding the quota from 25% to 50%. The new steel TRQ is expected to take effect next month.
Minister Kim noted, "South Korea currently secures 2.58 million tons of steel TRQ, but if the reduction is 46%, approximately 1.3 million tons will be excluded. I believe that negotiating to reduce this amount is a significant achievement for our industry. Expanding dialogue channels to trade and industry is also important."
He emphasized that, given the EU's protectionist stance, South Korea's free trade agreement (FTA) with the EU provides a strong basis for arguing against such measures. "South Korea could also retaliate, which would place a considerable burden on the EU, and they will likely feel the need to address this issue," he added.
Regarding the steel TRQ, he stated, "It is crucial for companies to identify new demand sources, and we plan to announce support measures aligned with the final volume decision at the end of June or early July."
On the topic of the Canadian submarine contract, he expressed, "We are waiting with anticipation for an announcement from Canada. There are local speculations that South Korea and Germany may share the contract, but we have not received any official confirmation, so we will wait until the end of this month."
He further remarked, "The Canadian submarine contract not only impacts the shipbuilding industry but also strengthens cooperation between our two countries amid global uncertainties such as the Middle East conflict. It also provides an opportunity to diversify our presence in the North American market and expand cooperation related to Arctic shipping routes."
Concerning the Middle East, Minister Kim reaffirmed the stability of oil supply. Reflecting on his visits to the United Arab Emirates (UAE) and Saudi Arabia, he stated, "We have reconfirmed oil supply stability and discussed infrastructure reconstruction. We consistently heard discussions on what we can do together for the development of the Middle East."
On the topic of reconstruction in Iran, he acknowledged both possibilities and risks, stating, "Not only Iran but the entire Middle East is undergoing reconstruction and redesign. Saudi Arabia and the UAE are working on alternative routes for oil transportation outside of Hormuz, and Iran has areas that require reconstruction. However, participation in Iran's reconstruction involves complex issues such as finance, EU sanctions, and negotiations with the U.S., so we are monitoring the situation."
Regarding investments in the U.S., he mentioned, "With the establishment of the U.S. Investment Corporation, we are currently following the necessary procedures. It remains to be seen whether the first project will be a single initiative or multiple projects, but we must consider the counterparties involved."
On the push for joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he stated, "While no final decision has been made, our commitment to actively pursue it remains unchanged. We are in close discussions with various CPTPP member countries. The previous discussions stalled due to a lack of reporting to the National Assembly, so we are considering how to proceed with that reporting."
* This article has been translated by AI.
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