The steel industry, which is struggling due to tariffs reaching 50%, a decline in construction activity, and competition with low-priced steel from China, has significantly reduced its expenditure on research and development (R&D). Experts note that to overcome the crisis, customized steel types tailored to demand industries are necessary, and the government must also provide support.

According to the steel industry on the 11th, POSCO's expenditure on research and development in the first quarter of this year was 89.4 billion won, a decrease of 18% compared to the same period last year. During the same period, Hyundai Steel's expenditure on research and development was 51.5 billion won, down 42% from the first quarter of last year. DongKuk Holdings' research and development expenditure was 2 billion won, a decrease of 0.2%.

Researchers are making experimental steel slabs using a vacuum melting furnace at Hyundai Steel Research Institute. /Courtesy of Hyundai Steel

SeAH Steel Holdings spent 1.4 billion won on research and development in the first quarter, an increase of 3% from the same period last year, while SeAH Besteel Holdings spent 1.4 billion won, a decrease of 19%. KG Steel and KISWIRE also saw reductions of 18% and 7%, respectively.

The industry stated that although the decrease in research and development expenditure is an inevitable situation, essential research activities, such as steel type development, are being continued. Jang In-hwa, chairman of the Korea Iron and Steel Association (POSCO), stated at the Iron Day event on the 9th, "The industry is facing a situation where it must seriously consider survival due to deepening uncertainty and global oversupply. We must strengthen research and development and focus on developing proprietary technologies and high-value products to secure a technological edge."

Experts point out that for the steel industry to overcome the crisis, active research and development must be conducted, and the government should support this.

Jung Eun-mi, a senior researcher at the Korea Industrial Technology Institute, said, "Since existing products are difficult to compete with against China, developing new steel types tailored to demand industries such as shipbuilding and automotive is a critical challenge for the steel industry," adding, "To respond to the demands of the diversifying downstream industries, it is necessary to increase investment in research and development, and the government also needs to support this."