South Korea provisionally slaps tariffs on Chinese steel plates for dumping

SEOUL, Feb 20 (Reuters) - South Korea's industry ministry said on Thursday it has provisionally decided to impose up to 38% tariffs on Chinese steel plate imports after an investigation into alleged dumping of the steel product used in shipbuilding and construction.

The move comes after South Korean authorities initiated an investigation into dumping by Chinese steel suppliers after local companies had filed complaints about an influx of low-cost steel plates from China, the world's biggest steel producer.

The ministry said that preliminary investigation results showed that there were "sufficient grounds" to suspect substantive damage to the domestic industry from dumped imports.

"In order to prevent damage that may occur during the full-fledged investigation period, we have decided to recommend the imposition of provisional anti-dumping duties of 27.91% to 38.02% to the finance minister," it said in a statement.

In 2024, South Korea imported $10.4 billion worth of steel products from China, accounting for 49% of its total steel imports.

Earlier on Thursday, shares of Hyundai Steel 004020.KS closed the session up 5.8% and POSCO Holdings 005490.KS jumped 3.9% on expectations of the announcement, while the broader KOSPI market .KS11 fell 0.7%.

The scrutiny on steel imports also comes as South Korea is bracing for the impact on the domestic industry of U.S. President Donald Trump's 25% U.S. tariffs on steel and aluminium imports.

Trade Minister Cheong In-kyo said last week that the U.S. tariffs due to come into force in March would reduce U.S. steel demand and erode steel exporters' profitability.