South Korea has reached a general agreement with the European Union on the bloc’s proposed steel import quota system, which could adversely affect Seoul steel producers, the industry minister said on Monday.
“Our quota is about 2.58 million tons, and there was a consensus that the volume would not be reduced by as much as 46%,” Industry Minister Kim Jung-kwan said. “We are not offering anything specific to the EU,” Kim added. “We did point out that the measure violates the free trade agreement and emphasized that Seoul could also take retaliatory measures.”
The move follows Kim’s recent visits to the Middle East, Europe, and Kazakhstan. His remarks came as the EU prepares to sharply cut tariff‑free quotas on 30 steel product categories and increase tariffs to 50% on imports exceeding those limits, in an effort to tackle global overcapacity. The measures are expected to take effect from July 1.
The new system is expected to affect South Korean firms, as the EU’s tariff-free steel import quota for Asia’s fourth-largest economy will be reduced by 46%, from 33.8 million tons to 18.3 million tons. Kim added that Korea will also introduce support measures for steelmakers once the quota is finalized.
On Middle East reconstruction projects, Kim said the government will explore opportunities to participate once current risks have been eased.
“There are, however, financial sanctions against Iran, and negotiations with the United States remain sluggish, so we are remaining on the sidelines due to potential risks,” he noted.
Kim also suggested that the fuel tax cut program could be phased out.
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