Minister of Trade, Industry and Energy Yoon Sang-jick speaks at a ceremony to mark the 16th anniversary of Steel Day on June 9.

Minister of Trade, Industry and Energy Yoon Sang-jick urged the Korean steel industry, which is struggling amid a downturn, to restructure business portfolios on a voluntary basis. 

In a speech at a ceremony to celebrate the 16th anniversary of Steel Day on June 9, Minister Yoon of the Ministry of Trade, Industry and Energy (MOTIE) said, “Now is a time when business portfolios should be restructured with a focus on mainstay businesses by aggressively eliminating nonessential business areas.”

Yoon said the government would enact a special law on supporting the restructuring of businesses to help steelmakers beef up fundamentals on a voluntary basis. The government will come up with comprehensive steps to strengthen Korea’s export competitiveness in order to cope with the sagging export industry in a more fundamental and structural perspective.  

He also urged the steel industry to help reduce unit prices through technology development, and process innovation that makes a difference in the global market. “The bleaker the situation turns, the more steelmakers will have to explore their own products and business areas through the development of proprietary technologies, and strive to reduce unit prices through process innovation,” said Minister Yoon, calling on the steelmakers to explore ways of making inroads into foreign markets in a differential manner by making the most of the foundation. 

Among some 300 people on hand at the anniversary event held at POSCO Center in Daechi-dong, Seoul were POSCO Chairman Kwon Oh-joon; concurrently chairman of the Korea Iron & Steel Association (KOSA); Hyundai Steel Vice Chairman Woo Yoo-cheol; Dongkuk Steel Chairman Chang Sae-wook; SeAh Steel Chairman Lee Soon-hyung; KISWIRE Chairman Hong Young-cheol; and TCC Steel Chairman Sohn Bong-rak.

In his commemorative speech, KOSA Chairman Kwon called for the steel industry to beef up fundamentals through structural business reform to overcome the difficulties. 

“Of late, the steel industry is implementing restructuring reform measures through choice and concentration by disposing of inefficient business sectors and voluntary restructuring,” said KOSA Chairman Kwon. “I’m sure that the move is a process of enormous pains, but it will be a platform for resurgence five years or 10 years later.” 

The Korean steel industry is struggling with a declining demand growth rate stemming from the recession of the global economy, coupled with the exacerbating of global supply gluts centering on Northeast Asia. 

Korean steelmakers are suffering from sagging sales caused by declining domestic demand and declining exports, influenced by low-priced Chinese products. Korean steelmakers chalked up $2.46 billion in steel exports in May, representing a drop for a fifth straight month. The downturn of the Korean steel industry is also blamed on plunging export unit prices stemming from a supply glut and declining raw material prices. 

In a toast, Hyundai Steel Vice Chairman Woo said, “Even though the Korean steel industry is faced with the difficulties, it will lead the Korean economy again some day, as iron has an attribute of being reborn at any environment.”

During the event, 27 people were honored with diverse prizes in recognition of their contributions to the development of the Korean steel industry.   

The Order of Industrial Service, Silver Tower went to Chairman Oh Wan-soo of Daehan Steel for his roles in contributing to lowering unit prices of contractors by introducing a steel fabrication system for the first time in Korea. 

KOSA holds diverse events to celebrate the first time molten metal was poured into a furnace at POSCO’s steelworks in Pohang on June 9, 1973. This year’s anniversary events included a marathon competition and a photo contest on the steel industry.