Mon Feb 17 05:02:11 UTC 2025: ## US Tariffs Threaten South Korea’s Steel City of Pohang

**Pohang, South Korea –** The city of Pohang, South Korea’s steelmaking heartland, faces an existential threat from impending US tariffs on steel imports. The 25% tariff, scheduled for next month, targets South Korea, the fourth largest steel exporter to the US (13% of total imports in 2024). This move comes as the industry already grapples with global oversupply and decreased demand, particularly from China.

Pohang, home to major steelmakers POSCO, Hyundai Steel, and Dongkuk Steel, has long been a cornerstone of South Korea’s economic growth. However, the city’s mayor, Lee Kang-deok, warns that the tariffs could destabilize the entire South Korean economy, citing the steel industry’s crucial role in construction, automotive, and shipbuilding. The potential impact on employment is severe, with factory closures and job losses already underway. One Hyundai Steel factory visited by AFP reporters showed signs of closure and worker protests.

Workers express deep concern, with anecdotal evidence of significant job losses over the past year. A long-time POSCO subcontractor, Lee Woo-man, reports that 20 of his colleagues have lost their jobs in the past year and anticipates further decline.

While some suggest the tariffs might create opportunities for South Korean firms to find new export markets, the immediate threat of widespread job losses in Pohang overshadows any potential benefits. Analysts, such as Vladimir Tikhonov, professor of Korea studies at the University of Oslo, agree that the impact of the tariffs will be significant, exacerbating existing challenges posed by Chinese competition and unfavorable exchange rates. The fear is that steel barred from the US market may flood Southeast Asia and Europe, intensifying price competition for South Korean producers. The future of Pohang’s steel industry, and indeed the city itself, hangs precariously in the balance.

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