Korean steel sector faces strain from carbon costs, steep tariffs

South Korea's steel industry, already under pressure from the United States’ and European Union's steep import tariffs and influx of cheap Chinese imports, is now facing another major blow, the soaring cost of carbon emission permit costs says a report by Pulse, the English service of Maeil Business Newspaper Korea.

- TBG NETWORK

The two largest steelmakers alone are expected to incur about 3 trillion won (USD 2.1 billion) in additional costs over the next five years. According to multiple sources from the steel industry in Korea on Thursday, under the Korean government's allocation plan for the fourth phase of the Korean Emission Trading Scheme (K-ETS), which will be implemented from 2026 to 2030, major steelmakers POSCO and Hyundai Steel Co. are expected to pay around 600 billion won annually, or 3 trillion won in total over five years, for emission credits. Under the fourth plan, the government's total annual allocation of carbon credits to all companies will shrink from 580 million tons to 450 million tons, red