South Korea imposes 38% tax on Chinese steel plates

South Korea's Ministry of Industry announced on February 20 that the country has decided to impose an anti-dumping tax of 38% on Chinese steel plates after an investigation, according to Reuters.

The Korea Trade Commission (KTC) launched an investigation in October 2024 after South Korea's Hyundai Steel complained about low prices of steel plates imported from China, the world's largest steel producer.

The preliminary investigation results show that there is sufficient basis to suspect that this source of cheap imported steel has caused significant damage to the domestic steel industry. In order to prevent possible damage during the full investigation, the authorities decided to recommend that the Ministry of Economy and Finance impose a provisional tax of 27.9-38%.

China has not commented on this move.

In 2024, South Korea imported $10.4 billion worth of steel products from China, accounting for 49% of total steel imports. Hyundai Steel's stock price closed 5.8% higher on February 20, while Posco's stock rose 3.9% and the Korean market's Kospi fell 0.7%.

South Korea's move comes as the country awaits the impact on its domestic steel industry from the Trump administration's 25% tariff on all imported steel and aluminum.

South Korean Trade Minister Cheong In-kyo said last week that the US tariffs scheduled to take effect in March would reduce steel demand in the US and reduce the profits of steel exporters.