South Korea K-steel act lacks subsidies and power cost cuts for low-carbon steel transition while EU and Japan offer billions

South Korea's new K-steel act took effect in June 2026 but critics say it falls short because it does not include direct subsidies for low-carbon steelmaking or cuts to industrial electricity rates. The law introduces a low-carbon steel certification system and special zones but offers no financial support comparable to what European and Japanese steelmakers receive. Germany caps industrial electricity rates at 5 cents per kWh for steel and chemicals through 2028, while South Korean industrial rates have risen 75% since 2021 to about 185.5 won per kWh, roughly 2.5 times the German subsidized rate. The EU has approved about 9 billion euros in subsidies for steel decarbonization projects since 2022, and Japan committed 20 trillion yen over 10 years under its GX policy. Without power cost relief or direct subsidies, Korean steelmakers face competitive disadvantages as CBAM tariffs and EU import quotas tighten. The steel industry is urging bolder measures to protect what it calls a key national strategic industry.