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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, October 9 — South Korean steelmakers POSCO and Hyundai Steel are expected to pay approximately $281 million (₩400 billion) in tariffs to the United States this year, as higher U.S. import duties on steel and aluminum take a toll on Korean exports.
According to data submitted by the two companies to Rep. Park Soo-young of the ruling People Power Party, tariffs imposed between March and December 2025 amount to $281.4 million in total. The U.S. government first imposed 25% import duties in March, later doubling the rate to 50% in June, intensifying the financial strain on Korean steel exporters.
From March to May, when the 25% tariff was in effect, the two firms paid about $5.7 million in duties. Between June and August, under the higher 50% tariff, payments surged to $90.4 million. Based on export volumes in the first half of the year, the companies are projected to pay an additional $134 million in duties between September and December.
The figures indicate that nearly two-thirds of the companies’ second-quarter operating profits were effectively wiped out by U.S. tariffs. In Q2, POSCO (standalone) posted an operating profit of ₩513 billion, while Hyundai Steel earned ₩101.8 billion.
Industry analysts warn that unless Seoul and Washington reach an agreement to ease tariff rates, Korean steel producers could face a sustained decline in profitability amid rising global trade protectionism.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
