Korean steelmakers unlikely to benefit from Biden’s visit

Domestic steelmakers remain skeptical that U.S. President Joe Biden’s meeting with President Yoon Suk-yeol will lead to the renegotiation of the U.S. import quota on Korean steel products, according to industry officials, Friday.

“Chances are slim for the steel tariffs being placed on the summit’s agenda,” a Korea Iron & Steel Association official said. “This topic should be discussed in a working-level meeting.”

The lobby group for domestic steelmakers expected the two countries’ leaders to focus more on tightening the economic alliance through Korean conglomerates’ investments in America’s semiconductor, electric vehicle, battery and renewable energy industries.

The government has reiterated that it will continue to talk with the U.S. Department of Commerce about the trade barrier, without confirming whether Yoon will mention this issue during his meeting with Biden.

Since last month’s announcement of Biden’s trip to Korea, attention has been focused on whether the U.S. would abolish the former Donald Trump administration’s regulation on steel imports from Korea.

Investors have expressed cautious hope for an unexpected gift from the U.S. president, even though U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Ambassador Katherine Tai both dismissed the possibility of renegotiating the quota agreement with Korea.

During Friday’s trading session, stock investors bet big on companies related to the steel industry, such as MoonBae Steel, Bookook Steel, Hanil Steel and Dongil Steel, based on the expectation that the U.S. may reach an agreement with Korea to temper the effects of the Section 232 steel tariffs.