Under the dual pressure of rising global trade protectionism and intensified geopolitical competition, South Korea's steel industry is facing unprecedented survival challenges. With the United States officially implementing a 25% tariff on imported steel, this industrial pillar, which heavily relies on exports to the U.S., is undergoing a domino-effect crisis. The "emergency management" declaration by Hyundai Steel, South Korea's second-largest steel manufacturer, not only reveals the tip of the iceberg regarding the difficulties facing South Korea's steel industry but also exposes the strategic vulnerabilities of traditional manufacturing countries in the context of global supply chain restructuring.

The "emergency management" measures initiated by Hyundai Steel appear to be self-rescue efforts on the brink of bankruptcy protection. Specific measures include: a 20% reduction in executive salaries, implementation of a "voluntary retirement" plan for employees, scaling down operations at certain factories, and reducing overseas business trips, among other cost-saving initiatives.

According to the latest data from the Korea Iron and Steel Association, the U.S. market accounts for 13% of South Korea's total steel exports, second only to Southeast Asia and the EU. However, since the U.S. reinstated tariffs on steel and aluminum on March 12, South Korean steel companies have not only lost 2.63 million tons of duty-free quotas but are also facing the harsh reality of a 25% cost increase.

As the second-largest steel company in South Korea, Hyundai Steel's price advantage in products like cold-rolled and galvanized steel in the U.S. market has instantly collapsed, triggering a cash flow crisis for the company.

Compared to Hyundai Steel's position in the industry, South Korea's 1,800 small and medium-sized steel companies are facing life-or-death survival challenges. These companies contribute to 40% of the country's steel exports but generally lack the capacity to hedge against exchange rate risks and tariff costs.