K-Steel Act Passage Imminent... Pohang City All-Out Effort to Reflect Local Steel Industry Support in Enforcement Decree

Passed the Legislation and Judiciary Committee... Final Plenary Vote on the 27th, "Effectiveness and Speed Are Key"
Pohang City and Steel Industry Mobilize to Include Concrete Support Measures for the Steel Sector in the Enforcement Decree

With the passage of the K-Steel Act now imminent, Pohang City has launched an all-out effort to ensure that support measures for the local steel industry are included in the enforcement decree.

The "Special Act on Enhancing the Competitiveness of the Steel Industry and Transition to Carbon Neutrality," a consolidated bill that merges four legislative proposals-including a special act co-sponsored by 106 lawmakers such as Assemblyman Lee Sanghui (Pohang South & Ulleung) and another special act on steel industry support led by Assemblywoman Kim Jeongjae (Pohang North)-has finally cleared the National Assembly’s Legislation and Judiciary Committee.

The K-Steel Act, which passed the committee review on November 26, now awaits only the final approval at the plenary session of the National Assembly scheduled for November 27.

National Assembly officials are optimistic about the bill’s passage on November 27, as it is classified as a non-contentious bill with no disagreements between the ruling and opposition parties.

Recently, the steel industry has faced an unprecedented combination of crises, including the global economic downturn, aggressive pricing from Chinese imports, worsening oversupply, and stricter carbon regulations.

In particular, it has become increasingly difficult for individual companies to bear the financial and technological burdens required for such a major transformation through their own investments alone. This has created a need for a national-level support system, which can be established through the enactment of this special law.

The K-Steel Act aims not only to provide support but also to fundamentally transform the structure of the steel industry. The bill includes provisions to establish a Special Committee for Strengthening Steel Industry Competitiveness under the Prime Minister’s Office, select and support low-carbon steel technologies, certify and create demand for low-carbon steel, designate and support special low-carbon steel zones, and protect the steel industry and foster talent development.

While welcoming the bill’s passage, the city emphasized that, in order to enhance the effectiveness of the policy, the demands and opinions from local sites must be reflected in the process of drafting the enforcement decree. Pohang City is currently preparing specific proposals to submit to the government.

The key proposals include support for the development and installation of carbon reduction technologies using blast furnaces, prioritizing existing steel cities when designating low-carbon steel special zones and recycled steel resource industry clusters, full government funding for national power, water, and hydrogen supply networks, and national funding support for energy-saving equipment for small and medium-sized enterprises. The city is making every effort to establish a solid foundation for practical support for the transition to low-carbon steel.

To ensure the successful drafting of the K-Steel Act’s enforcement decree, the three core steel industry cities-Pohang, Gwangyang, and Dangjin-plan to establish a joint response system and actively reflect the voices from the industry in the process.

On the 3rd of last month, the cities of Pohang, Gwangyang, and Dangjin held an "Emergency Video Conference of Steel Industry City Mayors." Photo by Pohang City

The three cities will soon hold a joint press conference at the National Assembly to adopt a unified proposal and deliver a message to the government, aiming to ensure that the K-Steel Act is implemented as a practical, field-oriented policy.

Jeon Ikhyun, Chairman of Pohang Steel Management Corporation, stated, "We welcome the passage of the K-Steel Act through the Legislation and Judiciary Committee," adding, "We hope that, along with the passage of the bill, the enforcement decree and detailed support measures will be established swiftly to provide relief to steel companies."

Mayor Lee Kangdeok said, "The passage of the K-Steel Act will be a decisive turning point for the Korean steel industry to prepare for a new leap forward. What matters most are speed and effectiveness," adding, "We will deliver the opinions of the three steel cities and work together with the government to ensure that concrete enforcement decrees are established quickly."

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