South Korea has introduced a comprehensive support package exceeding KRW 80 trillion ($53.97 billion) to help its steel sector cope with the fallout from the Middle East crisis.
The initiative was announced after a high-level meeting led by Financial Services Commission Chairman Lee Won-geon and attended by major steel producers, financial institutions and policymakers.
Rising costs and pressure on supply chains
Authorities stressed that the steel industry faces growing pressure from higher energy and logistics costs, supply chain disruptions and new trade measures from key markets such as the US and EU.
These issues are also expected to impact downstream industries, including machinery and electronics.
Extended financing and liquidity measures
Support package includes 25.6 trillion South Korean won ($17.27 billion) in policy funding and more 53 trillion South Korean won ($35.75 billion) in private sector programs.
Financial institutions will expand lending to companies affected by the crisis, while additional measures are aimed at reducing funding costs in capital markets.
Bond market support and cost reduction
Authorities will ease P-CBO refinancing terms and reduce bond issuance costs by about 50 basis points. Market stabilization tools, including bond purchase programs, will be deployed to support high- and low-rated issuers.
Support
