Will the "K-Steel Act" Speed Up Amid U.S. Tariffs and Chinese Pressure? Intensifying Ruling-Opposition Rivalry a Key Variable

Steel Excluded Again from Korea-U.S. Tariff Talks, High Tariffs Remain
Ruling and Opposition Parties Aim to Pass K-Steel Act This Month, Review Set for 19th
Extensive Provisions and Political Deadlock Raise Concerns of Further Delays

Despite the domestic steel industry being pushed to the brink due to a flood of low-priced Chinese steel imports and the continued imposition of high U.S. tariffs, the so-called "K-Steel Act" (Special Act for Strengthening Steel Industry Competitiveness and Transition to Green Steel Technology) to support the sector has been pending in the National Assembly for three months. As the situation has become more severe, both the ruling and opposition parties have planned to pass the bill at a plenary session this month and have begun to accelerate the process. However, with recent intensifying political conflict freezing the political climate, concerns are growing that it will be difficult to meet the targeted deadline.

Steel products are piled up at Pyeongtaek Port in Pyeongtaek City, Gyeonggi Province, on the 12th of last month. Photo by Yonhap News Agency

According to the political community on the 5th, the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee will hold a subcommittee for bill review on the 19th to discuss the K-Steel Act and related legislation. Previously, in August, 106 lawmakers from both parties jointly proposed the bill to support the struggling steel industry, but contrary to expectations, discussions have not progressed quickly. As a new law, the bill contains many provisions to review, and with the opposition between the parties overlapping with the period of the National Assembly audit, it has been pushed down the list of priorities.

A Democratic Party member of the committee explained, "Since seven government ministries are involved with this bill, extensive coordination within the government was required," adding, "There are no major disagreements between the parties, so once the government proposal is finalized, the goal is to review and pass it at the subcommittee on the 19th." Lee Sanghui, co-chair of the National Assembly Steel Forum and a member of the People Power Party, also said in a phone interview, "There were some shortcomings in the bill, and as we merged it with other proposed bills, the process was delayed."

President Lee Jae-myung is greeting after delivering the policy speech on the next year's government budget at the plenary session of the National Assembly in Yeouido, Seoul on the 4th. On the same day, members of the People Power Party protested the arrest warrant request for former floor leader Choo Kyung-ho by holding a silent protest outside the plenary session hall while absent. Photo by Yonhap News Agency

However, some argue that it is difficult to guarantee passage within this month. Given the length of the bill and opposition from climate groups, there is a possibility that the standing committee review will be delayed. With the ruling and opposition parties fiercely clashing over issues such as the budget bill and special prosecutor investigations, cooperation at the plenary session will also be difficult. A Democratic Party committee member noted, "It is uncertain whether the review can be completed within the targeted timeframe due to physical constraints."

If the K-Steel Act is delayed further, the pain for the steel industry, which has faced a 50% tariff rate on exports to the United States since June, will inevitably worsen. Last week, Korea and the United States reached agreements on tariffs for sectors such as semiconductors and automobiles at a summit, but steel, classified as a security item, was not even brought to the negotiating table. In response, the government announced a steel industry advancement plan the previous day, but there is consensus that the K-Steel Act is essential for fundamental improvements such as steel supply-demand adjustment. A Democratic Party official stated, "The best approach is to pass this bill as a basic law first, and then address concerns from labor or environmental groups and any shortcomings at the enforcement ordinance stage."

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