The Ministry of Trade, Industry and Energy (MOTIE) and Korea Iron & Steel Association (KOSA) held a ceremony to celebrate the 23rd anniversary of Steel Day on June 9.
They discussed the steel industry’s role in stabilizing the domestic supply chain and ways of ramping up competitiveness in a mid- and long-term perspective.
Thirty-two people, including President Yun Yang-su of POSCO Steeleon, were honored with government orders and other prizes in recognition of their contribution to the development of the domestic steel industry.
Steel Day has been observed since 2000 in celebration of POSCO Pohang Steelworks’ producing of its first molten iron in Korea’s history on June 9, 1973.
Among those on hand at the event were 1st Vice Minister Jang Young-jin of the Ministry of Trade, Industry and Energy, Chairman Choi Jeong-woo of the Korea Irion & Steel Association, concurrently POSCO chairman, President Ahn Dong-il of Hyundai Steel, Vice Chairman Jang Se-wook of Dongkuk Steel, Chairman Kwak Jae-sun of KG Dongbu Steel, Vice Chairman Howard Lee of SeAH Steel, and Vice Chairman Cho Suk-hee of TCC Steel.
Prior to the ceremony, MOTIE Vice Minister Jang had a closed meeting with KOSA Chairman Choi and steel company leaders. He lent an ear to the steel industry’s pending issues and recommendations.
In his commemorative speech, MOTIE Vice Minister Jang stressed an economic structure in which the private sector takes a lead, and the government offers support to overcome hard external and internal conditions, such as the restructuring of the global supply chain and raw material price hikes.
He said the government will offer support, such as easing the industry’s complaints as a partner of the steel industry, which plays a significant role in supplying the basic material to all industries at the front of the value chain.
Vice Minister Jang urged the steel industry to make efforts to secure raw materials to stabilize supply networks, ramp up shared growth with Korea demand industries, including automobiles and shipbuilding, and preemptively brace for the post-super cycle.
In particular, he emphasized investments for qualitative growth in a mid- and long-term perspective, not quantitative expansion.
Vice Minister Jang stressed the need to cope with global trade environment changes, such as the carbon border adjustment mechanism and the Indo-Pacific Economic Framework (IPEF), as well as the development of new materials tailored to meet demand industry changes, citing new opportunities.
Vice Minister Jang disclosed a plan to establish steps to manage iron resources, such as iron scraps whose demand is feared to surge in the course of the implementation of carbon neutrality.
As demand for electric furnaces, emitting less carbon, is on the rise, the supply of iron scraps, the main fuel of electric furnaces, has emerged as one of supply chain issues.
KOSA, POSCO, Hyundai Steel and Industrial Bank of Korea recently struck a deal to raise a 150 billion won steel ESG shared growth fund to support the steel industry’s SMEs and mid-size enterprises experiencing liquidity issues, caused by recent raw material price hikes, and spur ESG management
The fund is expected to be utilized for the operation of steel SMEs for the purpose of their ESG management.
Companies which have presented ESG management plans after they are recommended by KOSA, or contributing companies, are entitled to borrow money from the fund at a prime rate 1.43 percentage points lower than the current market rate.
If companies which have no ties with the large-sized contributing companies are recommended by KOSA, they will be able to utilize part of the fund.
Steel SMEs are expected to benefit from the latest fund, which sees greater interest reduction and loan caps compared to a 100 billion won steel fund, operated during the period between 2020 and 2022.
During the anniversary event, MOTIE Vice Minister Jang awarded orders and other government prizes to 32 people, including POSCO Steeleon President Yun, in recognition for their contribution to the development of the steel industry.
President Yun was honored with the Order of Industry Merit, Silver Tower for producing eco-friendly steel plates and improving the environment by launching the color plate integrated brand “INFINeLI.”
