The South Korean government has launched a KRW 400 billion ($278 million) export guarantee program to support small and medium-sized enterprises (SMEs) in the domestic steel sector.
Jointly backed by POSCO Group, the Industrial Bank of Korea, and the Korea Trade Insurance Corporation, the initiative offers preferential loans with lower interest rates, extended repayment periods, and reduced guarantee fees to help SMEs weather global oversupply and declining competitiveness.
The initial focus will be on general-purpose steel and rebar, sectors hit hard by excess capacity and shrinking margins. Companies that voluntarily scale back production will qualify for tax incentives and financial assistance under the upcoming Steel Industry Special Act.
To counter cheap imports, authorities plan to tighten antidumping rules, extend enforcement to bonded zones and third countries, and require certificates of origin starting in 2026.
In the long term, the government will invest KRW 200 billion by 2030 to develop 10 new specialized carbon steel grades, aiming to raise high-grade steel’s share in output from 12% to 20%, surpassing Japan’s 17% and approaching Germany’s 38%.
VietnamSteel by Hoa Sen Group
