Backed by a bipartisan group of 106 lawmakers, the bill aims to strengthen the global competitiveness of South Korea’s steel sector, which was excluded from tariff negotiations with the United States and remains subject to a 50% punitive import tariff.
Democratic Party lawmaker Eoh Ki-gu and People Power Party lawmaker Lee Sang-hwi, who co-chair the National Assembly Steel Forum, held a joint press conference at the National Assembly to introduce the proposal. The bill’s full title is the “Special Act on Strengthening Steel Industry Competitiveness and Transitioning to Green Steel Technologies” though it is popularly referred to as the K-Steel Act.
The proposed legislation calls for the establishment of a Special Committee on Enhancing the Competitiveness of the Steel Industry, chaired by the President. It also mandates the creation of a five-year master plan to systematically improve the sector’s long-term competitiveness.
To support green steel production, the bill proposes designating certain areas as “Green Steel Zones”, where regulatory hurdles would be eased. This includes simplified permitting procedures and exemptions from preliminary feasibility studies. It also outlines tax incentives and financial support measures to mitigate the negative impact of export-related pressures.
The proposal comes in response to the United States’ decision, effective June 2025, to impose a 50% tariff on steel imports globally, and the European Union’s upcoming Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, which will tax steel producers based on carbon emissions.
“The domestic steel industry is facing simultaneous internal and external crises due to additional regulatory pressures from the U.S. and Europe, as well as the influx of cheap Chinese steel,” the lawmakers stated. “This bill is a critical step toward ensuring the industry's sustainability. We will continue working diligently on the subsequent legislation.”
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