South Korea to Introduce New Export Guarantee Program for Steel Industry

Strategic Insights -

Industry Minister Kim Jung-kwan announced a new export guarantee program worth 400 billion won (approximately $290 million) to support the country's steel industry facing significant tariffs from the United States. The program, aimed at strengthening steel supply chains, will create an economic effect equivalent to about 400 billion won in support. The government will work closely with steelmakers, financial institutions, and policy lenders to implement the measure, with ongoing talks with Washington for tariff relief.

Key Takeaways:

  • The South Korean government will introduce a new export guarantee program worth 400 billion won for the steel industry, which is struggling with steep tariffs from the United States.
  • Industry Minister Kim Jung-kwan said the government, steelmakers, financial institutions, and policy lenders will work together to create a guaranteed scheme to strengthen the steel industry's supply chains.
  • The program will create an economic effect equivalent to about 400 billion won in support, aiming to bolster the steel industry and ease regional economic strains triggered by the sector's difficulties.
  • The government will seek to block unfair imports and continue holding talks with Washington for tariff relief.
  • Minister Kim Jung-kwan vowed to roll out follow-up support measures for the industry and step up efforts to ease the economic impact on the region.

Statistics:

  • The new export guarantee program is worth approximately 400 billion won (US$290 million).
  • Steel exports from South Korea tumbled more than 25 percent on-year in July due to the impact of US tariffs.
  • The US administration imposed 25 percent tariffs on steel and aluminum imports, doubling the rate to 50 percent in June.

Sources:

  • Yonhap News Agency, September 19, 2025.