To Set up KRW150bn Fund for R&D on Low-carbon Steelmaking
The Ministry of Trade, Industry and Energy and seven steelmakers (POSCO, Hyundai Steel, Dongkuk Steel, SeAH Steel, KG Steel, Daehan Steel and Aju Steel) signed an MOU on Feb. 16.
According to the MOU, they will form an alliance for low-carbon steelmaking and R&D cooperation. In addition, they will prepare a fund of 150 billion won to that end if their existing steel ESG fund of the same size is used up.
These days, regulations for carbon reduction are increasing in the steel industry, including the Carbon Border Adjustment Mechanism of the European Union. The South Korean government recently announced new industrial strategies to cope with such regulations and the ongoing oversupply in the industry.
The strategies include scrap iron industry ecosystem establishment by 2030 and development of the world’s first hydrogen reduction steelmaking technologies. Those also include completion of high-manganese steel value chains for green ships and becoming the third-largest steel exporter in the world.