Trade minister conveys Seoul's concerns over EU's trade protectionist measures to European Parliament

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South Korean Trade Minister Yeo Han-koo has taken Seoul's concerns over the European Union's (EU) planned steel safeguards directly to European lawmakers and top trade officials, according to South Korea's Ministry of Trade, Industry and Resources. The diplomatic push comes as the EU prepares to implement a new steel tariff rate quota (TRQ) system on July 1, a mechanism that officials in Seoul say could sharply curtail South Korean steel exports to the bloc.

Coverage comparison

Reports from Yonhap News, South Korea's leading wire service, detail a multifaceted outreach campaign by Minister Yeo over the past several weeks. On May 14, news agency reported that Yeo met with Maros Sefcovic, the European Commissioner for Trade and Economic Security, in Brussels, where he raised deep concerns about the planned measures. This was followed by a May 28 meeting in Seoul with a delegation from the European Parliament, where Yeo reiterated his concerns. Most recently, on June 4, Yonhap reported that Yeo met again with Commissioner Sefcovic, during which he specifically called for favorable treatment for South Korean firms under the new system.

Key Claims

• The EU plans to implement a new steel TRQ system, which is stronger than the current steel safeguard system, starting in July. This claim is consistently reported across multiple reports and is the central issue of the diplomatic outreach.
• The new system would nearly halve the quota for the EU's tariff-free steel imports to 18.3 million tons from the current 35 million tons, alongside a doubling of tariffs on out-of-quota imports to 50 percent from 25 percent. This statistical detail is reported by a single source.
• South Korea exported approximately US$4.48 billion worth of steel to the EU in 2024, accounting for 13.5 percent of the country's total steel exports, according to data compiled by the Korea International Trade Association and cited in the reports.
• Yeo discussed the issue with Maros Sefcovic, the European Commissioner for Trade and Economic Security, and the two agreed to continue discussions to find a mutually beneficial solution. This is reported as part of the June 4 meeting.
• The EU's new steel import system is part of broader trade measures, which also include the Industrial Accelerator Act, a bill that would give benefits to products made within the EU. This context was part of the discussions with the European Parliament delegation.
• The EU plans to raise tariffs on 30 steel items and reduce tariff-free quotas on foreign steel imports starting in July.
• During his visit, Yeo also traveled to Mexico to push for the resumption of free trade agreement negotiations. While in Mexico, he met with Mexican Secretary of Economy Marcelo Ebrard, and they agreed to launch a new ministerial-level strategic dialogue.

Perspectives

From the perspective of the South Korean government, as reported by Yonhap, the EU's measures are a direct threat to a key domestic industry. The reports, drawing on statements from the Ministry of Trade, Industry and Resources, frame the EU's actions as trade protectionist and warn of significant adverse effects on Korean companies and broader global supply chains.

From the perspective of the EU, as reported by Yonhap, the new TRQ system is presented as a necessary update to existing trade defense instruments. While the specific impetus is not detailed in full, the trims to quotas and the doubling of tariffs suggest an EU priority to protect its domestic steel industry, a sector that has seen significant scrutiny in recent years.

A third perspective, common to the concerns of the South Korean government and the companies it represents, focuses on the legal and economic impact on industries such as automobiles and home appliances, which rely on steel and would face higher input costs or supply chain disruptions.

This article includes reporting from Yonhap News Agency.