As global protectionist barriers rise, South Korea's steel industry is reworking its export strategies. Following the United States' imposition of a 50% steel tariff, the European Union has significantly reduced its duty-free import quotas, and Japan has strengthened anti-dumping regulations on South Korean steel products. Domestic companies are diversifying their business strategies through local production, expanding high-value products, and entering new markets to adapt to the protectionist era.
According to industry reports, trade barriers targeting South Korean steel have intensified this year. The Korea Trade-Investment Promotion Agency (KOTRA) reported that there were 241 import regulations against South Korean products globally in the first half of 2026, an increase of 11 from the previous half. Among these, steel and metals accounted for 113 cases, or 46.9% of the total.
Of the 25 new import regulation investigations initiated against South Korean products in the first half of this year, seven were related to steel and metals. With the U.S. leading the charge, countries are increasingly expanding trade remedy measures such as anti-dumping and safeguards.
Companies like POSCO, Hyundai Steel, and Dongkuk Steel Group are directly affected. Japan has imposed provisional anti-dumping tariffs on South Korean hot-dip galvanized steel since last month, with rates set at 29.2% for POSCO, 30.6% for Dongkuk CM and SeAH CM, and 38.0% for Hyundai Steel.
Additionally, Japan is conducting anti-dumping investigations on South Korean hot-rolled and cold-rolled steel, potentially broadening the scope of regulations to include all flat products. The EU has also added provisional safeguard measures on grain-oriented electrical steel (GOES) as of September 18, further increasing the export burdens on South Korean steelmakers.
In response, South Korean steelmakers are shifting their export-centric strategies. A key focus is on 'localization.' For instance, Hyundai Steel, in partnership with POSCO, is investing in a 2.7 million-ton electric arc furnace steel mill under construction in Louisiana, USA. This local production aims to avoid the 50% U.S. steel tariff, enhancing price competitiveness and accelerating entry into the North American automotive steel market.
POSCO is also expanding into the energy sector, focusing on large and small modular nuclear reactors (SMRs) through its subsidiary, POSCO E&C. The company is developing technologies that integrate fourth-generation high-temperature gas reactors with hydrogen-reduced steelmaking to secure new revenue sources amid increasing uncertainties in steel exports due to rising protectionism.
Dongkuk Steel Group is prioritizing product and market diversification over overseas investments. The company plans to reduce its reliance on exports to specific countries while differentiating its offerings, focusing on high-value color steel products like Luxsteel from Dongkuk CM.
An industry insider noted, "With the U.S., Europe, and Japan all raising steel trade barriers, relying solely on traditional export methods is becoming increasingly limited. Securing local production bases, increasing the share of high-value products, and diversifying export markets will be crucial strategies moving forward."
* This article has been translated by AI.
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