South Korean hopes for exemption from US steel tariffs

South Korea's trade minister on Monday expressed cautious hope for an exemption from US-proposed tariffs on Korean steel products as negotiators lobby to minimize the impact on local industries.

Pike Un-gyu, secretary of commerce, industry and energy, said South Korea is in talks with US officials through multiple channels to get a deferral of 25 percent steel duties, which are due to take effect on March 23.

South Korea sold 3.6 million tonnes of steel products to the United States last year, according to the Commerce Department, making it the third largest exporter of rolled steel after Canada and Brazil.

Despite a military and economic alliance with the United States, South Korea is in a more difficult situation than other countries due to its large steel imports from China, which is accused of flooding the global market with cheap products.

South Korean officials said they would make it clear that the country is cutting steel production to address global oversupply and does not serve as a springboard for Chinese steel to enter US markets.

While negotiations on steel tariffs and a new trade deal are under way at the same time, Pike said Seoul is involved that there is a chance in these negotiations given "different possibilities."

Regarding concerns about growing pressure on the Korean side to provide more negotiating room for US negotiators in trade negotiations, Pike said Seoul would not make unilateral concessions to US demands at the negotiating table.

In the last round of negotiations, the US called for increased market access to the Korean car market and stronger rules of origin.