POSCO and Hyundai Steel labor unions held a joint news conference March 19 at the National Assembly, urging the government to ease the burden of industrial electricity rates and carbon-related costs. They said domestic steelmakers face “the worst collapse” as energy costs pile onto slowing global demand and oversupply, and called for concrete support measures.
The event was co-hosted by the POSCO union under the Federation of Korean Trade Unions’ metal workers federation and Hyundai Steel’s Pohang branch under the Korean Confederation of Trade Unions’ metal workers union. Speakers focused on electricity prices and carbon regulation as the biggest pressures on the industry.
Kim Seong-ho, chair of the POSCO union, said the industry is being hit by sharply worsening profitability, stronger protectionism in advanced economies and “astronomical” carbon-emissions costs. “This is the point where the government must step in with real support,” he said.
Kim said it was the first time in POSCO’s 57-year history that its union had joined Hyundai Steel in a coordinated response, underscoring the severity of the crisis. Observers called it unusual for unions at the country’s No. 1 and No. 2 steelmakers — competitors with different affiliations — to speak together.
Song Jae-man, head of Hyundai Steel’s Pohang branch, said industrial electricity rates have risen about 85% over the past five years while steel output has fallen sharply, pushing the sector to its limits. He said plant downsizing and job insecurity are becoming reality, weakening local economies.
Song said stressing carbon neutrality while leaving power costs untouched ignores industrial realities. He called for Pohang to be designated a steel-industry crisis area, for industrial power rates to be lowered, and for government support to shift to cleaner steelmaking processes.
The two umbrella labor groups also cited management strain from exchange-rate swings tied to risks from the Iran war. Because the steel industry relies heavily on imported raw materials, they said higher oil prices and currency volatility feed directly into costs.
A union official said even a small rise in the exchange rate can sharply increase fixed-cost burdens. With the market already weak, the official said, added energy costs have pushed worksites to the brink.
On the government’s recently announced power-pricing overhaul, the unions said steelmaking is a continuous, 24-hour process, meaning higher nighttime rates could outweigh any benefit from lower daytime rates. They said the plan is unlikely to deliver meaningful relief.
The unions demanded measures including relief on industrial electricity bills, reforms to the emissions-trading system, and expanded financial and infrastructure support for a shift to greener processes such as hydrogen-based steelmaking.
Also attending were People Power Party lawmaker Lee Sang-hwi, Democratic Party lawmaker Kwon Hyang-yeop and independent lawmaker Kim Jong-min, who voiced support for a joint response to the steel industry crisis.
* This article has been translated by AI.
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