Key facts
- South Korea's industry minister, Kim Jung-kwan, urged the U.S. to ease tariffs on imported steel mill equipment.
- The tariffs affect equipment needed for Hyundai-POSCO Louisiana Steel LLC's $5.8 billion steel mill project in Louisiana.
- The project is a joint venture among Hyundai Motor Group affiliates and POSCO.
- The minister met with Louisiana Gov. Jeff Landry to discuss the issue.
- The steel mill is expected to strengthen supply chain cooperation between South Korea and the U.S.
South Korea's industry minister, Kim Jung-kwan, has urged the United States to ease tariffs on imported equipment essential for a significant steel mill project in Louisiana. The request was made during a meeting with Louisiana Governor Jeff Landry ahead of a groundbreaking ceremony for Hyundai-POSCO Louisiana Steel LLC (HPLS).
HPLS, a joint venture involving Hyundai Motor Group affiliates (Hyundai Steel Co., Hyundai Motor Co., and Kia Corp.) and POSCO, is set to begin construction in the fourth quarter of 2026. The $5.8 billion electric arc furnace-based integrated steel mill is scheduled to commence commercial production in 2029. The project aims to supply automotive steel to global automakers' facilities in the southern United States and Mexico.
Minister Kim highlighted that Korean companies face tariffs under Section 232 of the Trade Expansion Act of 1962, which allows for import adjustments based on national security concerns. He emphasized the need for U.S. support by easing tariffs on equipment and materials that must be shipped from South Korea. The minister stressed that the project would strengthen supply chain cooperation by integrating South Korean steelmaking technology with U.S. industrial and energy infrastructure.
Attendees at the groundbreaking ceremony included Hyundai Motor Group Executive Chair Euisun Chung, POSCO Group Chairman Chang In-hwa, and South Korean Ambassador to the United States Kang Kyung-wha. Governor Landry and Louisiana Economic Development Secretary Susan B. Bourgeois expressed enthusiasm for the investment, noting its potential to create jobs and stimulate economic activity in the region. The Louisiana plant is part of Hyundai Motor Group's broader $26 billion U.S. investment plan.