Low-carbon steel zones to reflect regional traits as K-Steel Act takes effect June 17

The Steel Industry Act, known as the K-Steel Act, will take full effect June 17, establishing a legal framework to support South Korea's steel sector.

The Ministry of Trade, Industry and Energy said the cabinet approved the enforcement decree for the K-Steel Act on Tuesday.

The decree fleshes out provisions delegated by the Special Act on Strengthening the Competitiveness of the Steel Industry and Transitioning to Carbon Neutrality, enacted in December last year.

The decree covers five areas: the formation and operation of a Special Committee on Steel Industry Competitiveness; certification standards and procedures for low-carbon steel; designation requirements and procedures for low-carbon steel special zones; designation requirements and procedures for companies specializing in recycled steel resource processing; and the criteria and procedures for applying fair trade law exemptions to joint activities and information sharing.

The Special Committee will deliberate on key policies including steel-related laws and regulations and five-year master plans. It will consist of government members drawn from minister-level civil servants at related ministries, as well as private-sector members appointed on the recommendation of relevant institutions and organizations.

Through this structure, the government plans to systematically carry out core policy tasks and strengthen cross-ministry cooperation.

The decree also lays the institutional groundwork for a low-carbon, high-value transition in the steel industry. Certification standards for low-carbon steel will be set by the minister of trade, industry and energy through official notice, taking into account steel production methods, applied technology, and greenhouse gas emissions and reductions.

When designating low-carbon steel special zones, authorities will examine criteria including the effect on industrial clustering and competitiveness, and the feasibility of securing necessary infrastructure.

The decree also establishes application and review procedures for zone designation, the ministry said, enabling the creation of a steel industry innovation ecosystem tailored to the characteristics of each region.

The designation requirements for companies specializing in recycled steel resource processing include whether the applicant holds the necessary site, facility and equipment for processing operations.

"Now that the legal foundation for fundamentally strengthening the steel industry's competitiveness is in place, we will work closely with related ministries to advance policy tasks as quickly as possible," a ministry official said.