Hyundai Steel's U.S. Mill Must Deliver for Both Nations

Key attendees break ground at the groundbreaking ceremony for the Hyundai Steel-POSCO Louisiana electric arc furnace steel mill in Donaldsonville, Louisiana, on Nov. 4. From left: POSCO Group Chairman Chang In-hwa, Louisiana Gov. Jeff Landry, Hyundai Motor Group Executive Chair Chung Euisun, U.S. Rep. Troy Carter, Industry and Trade Minister Kim Jung-kwan, U.S. Under Secretary of Commerce for International Trade William Kimmitt, and Hyundai Steel President Lee Bo-ryong. Photo courtesy of Hyundai Motor Group Hyundai Steel (004020) and POSCO will invest $5.8 billion, or about 8 trillion won, to build an electric-arc-furnace steel mill in Louisiana with annual capacity of 2.7 million tons. The plan is to leap over rising U.S. steel tariff barriers, attack the North American market directly and secure a stable supply of automotive steel sheet for the local plants of Hyundai Motor (005380) and Kia (000270). It carries particular weight because Hyundai Steel and POSCO, the two pillars of Korea's steel industry, have joined hands to compete overseas. Hyundai Motor Group Executive Chairman Euisun Chung also laid out a blueprint to supply specialty steel made at the site to advanced industries such as robotics and rockets. By combining natural-gas-based direct reduced iron with electric arc furnaces, the mill will cut carbon emissions by about 70% compared with a blast furnace, and over the long term natural gas is to be replaced by hydrogen. The Louisiana mill is a symbol of industrial cooperation between Korea and the United States. As the first integrated steel mill built in the U.S. in 60 years, it is a new model of cooperation that links the supply chains of the two countries and strengthens American manufacturing competitiveness. William Kimmitt, U.S. under secretary of commerce for international trade, spoke in this context when he stressed that a country that cannot produce steel cannot be a great power. This project must deliver tangible benefits to both sides. If the U.S. gains a steel mill and jobs, Korean companies should be given incentives that ease trade pressure and widen their business opportunities. The government should press for relief from tariffs on the equipment and materials needed for construction, and should highlight the industrial cooperation benefits in investment negotiations with Washington. Korea must also prepare for concerns that expanding production abroad could weaken the manufacturing base at home. The strategy is to win back a U.S. market blocked by tariff walls through local production, but there is no shortage of voices worried about job losses in Korea. Steel is a foundational industry that underpins manufacturing, from autos to shipbuilding to defense. If that pillar wobbles, a chain reaction across related industries is inevitable. The government and the National Assembly should reconsider including low-carbon steel, recycled plastics and electric vehicles — all left out of the domestic production tax credit dubbed Korea's version of the Inflation Reduction Act — among the programs' beneficiaries. Support for the green transition also needs to be accelerated, including relief from electricity costs, improvements to the emissions trading scheme and hydrogen-based steelmaking. A meticulous industrial strategy is needed so that overseas investment does not shrink domestic jobs and production capacity. Watch · Seoul Economic Daily More → 2:39 Treasury Share Sales Vanish: One Disposal in Two Months After EB Crackdown | September 04 2026 | Securities Daily 2:39