Sung Yun-mo "Supporting AI Integration in Steel Industry through Korean New Deal... Leading Digital Growth"

Sung Yun-mo, Minister of Trade, Industry and Energy / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] Sung Yoon-mo, Minister of Trade, Industry and Energy, said on the 15th, "We will actively support the spread of artificial intelligence (AI) convergence in the steel industry through the 'Korean New Deal,'" adding, "We expect the steel industry to lead a digital growth model based on AI and data."

On the same day, Minister Sung held the '3rd Post-Corona Industrial Strategy Dialogue' at the Korea Chamber of Commerce and Industry in Seoul to assess the crisis situation in the steel industry and discuss countermeasures.

The meeting was attended by major steel company CEOs and experts, including Choi Jeong-woo, Chairman of POSCO, and Ahn Dong-il, President of Hyundai Steel, to discuss international steel market trends, suggestions for resolving difficulties, and ways to strengthen competitiveness.

The steel industry is facing a severe downturn as demand in the automobile, shipbuilding, and construction sectors has contracted due to the novel coronavirus disease (COVID-19). Steel exports last month decreased by 24.1% compared to the previous year, and exports in May and June are expected to decline by more than 20%.

The domestic market size has also been shrinking for four consecutive years, and this year it is forecasted (by POSCO Research Institute) to fall below 50 million tons for the first time since 2009.

In response, the government plans to support the steel industry in overcoming the crisis and making a leap forward by focusing on three aspects: resolving difficulties, recovering demand, and strengthening competitiveness.

First, the government will continuously monitor whether liquidity support programs are functioning on the ground and plans to minimize industry difficulties by easing environmental regulatory burdens such as greenhouse gas emission permits.

To recover domestic demand, the execution of existing projects such as infrastructure investment and petrochemical plant investment will be expedited as much as possible.

To support the high value-added transformation of the steel industry, more than 400 billion KRW will be invested in metal sector research and development (R&D) over the next five years. Preliminary feasibility studies for new technology development projects are also underway.

Minister Sung urged, "The industry should actively invest in R&D," and added, "The traditional smokestack industry of steel should rather lead industrial intelligence and strive to create a cooperative ecosystem for the digital growth of the entire industry."

He also expressed his intention to support the spread of AI convergence in the steel industry through the Korean New Deal and to back industry efforts such as entering new industries and domestic reshoring through the Corporate Vitality Act and the Return-to-Korea Act.

On the day, the steel industry proposed expanding liquidity support due to sharp sales declines, deregulation, and expanding domestic demand to overcome the crisis.

In particular, business leaders hoped that the steel industry would be included in the target sectors for the Industrial Stability Fund currently under discussion, along with expanded government liquidity support.

They also voiced difficulties caused by the sharp decline in exports of oil country tubular goods (OCTG) and pipelines due to low oil prices. To create demand for steel pipes, they requested expanded public investment in energy infrastructure such as gas pipelines and heat transport pipes, as well as in projects to repair aging water supply pipes.

They also requested relief from environmental regulatory burdens, such as allocating as many emission permits as possible to the industry during the third phase (2021?2025) of the greenhouse gas emission permit plan.

The Ministry of Trade, Industry and Energy said it will actively support the industry's requests through consultations with related ministries via the Economic Central Disaster and Safety Countermeasures Headquarters.

This content was produced with the assistance of AI translation services.