S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms

Preparations are well underway to protect Korean businesses big and small from potential disruptions in light of the 25-percent tariffs on steel and aluminium imports into the American market.

Our correspondent Moon Hye-ryeon reports.

The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday.

Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses.

At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington.

To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape.

Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers.

This initiative allows SMEs to support services essential for overseas market expansion, including legal consulting and trade certifications.

With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year.

Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month.

He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia.

Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so.

With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market.

Moon Hye-ryeon, Arirang News.