The South Korean government has unveiled a 400 billion Korean won ($278.41 million) steel export guarantee program to strengthen small and medium-sized enterprises in the domestic steel sector. According to local media reports, the initiative launched on November 4, 2025, aims to cushion domestic industry from headwinds in the global market caused by oversupply, rising trade barriers and declining export competitiveness.
The new program, jointly supported by the South Korean steel concern POSCO Group, the Industrial Bank of Korea and the Korean Commercial Insurance Corporation, will allow relevant enterprises to access preferential loans with interest rates up to two percentage points below standard rates. The support package also extends repayment periods from one year to three years and reduces warranty costs from 1.0 percent to 0.7 percent, offering tangible relief to smaller players facing liquidity and competitiveness challenges.
Focus on general purpose steel and rebar
The government's initial focus under the new initiative will be on the general-purpose steel segment, in particular rebar, a key material in South Korea's construction industry. The sector has been severely affected by oversupply and weakening margins. To balance production and increase profitability, firms that voluntarily adjust their capacities will be eligible for tax breaks and financial assistance. Further measures are expected to be taken in accordance with the upcoming Special Law on the Steel Industry.,
