The shadow of US tariff policies is looming over the South Korean steel industry. Recently, two major steel giants in South Korea, Hyundai Steel and Pohang Steel, announced the closure of five domestic factories and plans to relocate some production lines overseas, with an estimated 2500 layoffs. This measure has raised concerns in the industry about the future of the South Korean steel industry.

Factory shutdown, employees facing layoff crisis

In February, the Hyundai Pohang Second Plant located in Pohang, Gyeongbuk, South Korea appeared unusually deserted. Since December last year, the factory has partially shut down, with half of the over 260 production workers on standby. Similarly, Hyundai's factory in Ulsan is also facing a shutdown crisis, and the Ulsan 1 factory 2 production line, which produces electric vehicles such as IONIQ 5, plans to suspend production from February 24th.

According to Reuters, some South Korean steel companies are considering building new steel plants in the United States to cope with potential tariff policies implemented by the Trump administration. However, this measure may lead to domestic production cuts in South Korea. An employee told the South Korean newspaper, "If the new factory in the United States starts construction, I don't know if the Ulsan factory can operate at its previous scale. I'm worried that the atmosphere of layoffs will become even more severe

A steel industry insider stated, "In the changing business environment, expanding overseas production is an inevitable choice, so we will try our best to minimize domestic personnel adjustments and carefully consider relevant plans.

This round of adjustment in the South Korean steel industry not only reflects changes in the global trade environment, but also highlights the helpless choices of enterprises in dealing with policy risks. In the future, it remains to be seen whether South Korean steel companies can find new growth points in overseas markets while reducing the impact on domestic employment.