The authorities of South Korea have formally requested the United States to lower the import tariffs on equipment and materials from the Asian country necessary to build a new steel plant in Louisiana. This is a joint project of Hyundai Motor Group and POSCO (Pohang Iron and Steel Company) valued at 5.8 billion dollars (about 4.9 billion euros).
The request was made this Saturday by the South Korean Minister of Industry, Kim Jung Kwan, in a meeting with the governor of Louisiana, Jeff Landry, held just before the groundbreaking ceremony of Hyundai-POSCO Louisiana Steel LLC (HPLS).
The plan foresees the construction of an integrated steel mill based on electric arc furnaces. According to the Ministry of Trade, Industry and Resources of South Korea, the works should begin in the fourth quarter of the year, as reported by the Yonhap news agency.
During the meeting, Kim urged the U.S. authorities to take into account the difficulties faced by South Korean companies channeling investments into the U.S. market and to support the initiative by reducing the taxes applied to the equipment and materials that must be shipped from South Korea.
The South Korean government argues that facilitating the entry of the necessary components to build HPLS would strengthen bilateral industrial cooperation, as the new factory will combine South Korean steel technology with the industrial and energy capabilities of the United States, according to the Ministry.
Once operational, the plant will focus on the production of steel for the automotive sector. The manufacturing will be aimed at supplying factories of international builders located in the southern United States and in Mexico, including the facilities of Hyundai Motor and Kia.
The kickoff event for the project was attended by the executive chairman of Hyundai Motor Group, Euisun Chung; the chairman of the POSCO Group, Chang In Hwa, and the South Korean ambassador to the United States, Kang Kyung Wha.
Chung emphasized that local production of steel for automotive will allow Hyundai Motor Group and other U.S. manufacturers to advance in the development of new mobility solutions.
On the other hand, the Secretary of Economic Development of Louisiana, Susan B. Bourgeois, stressed the impact that the investment is already having on the state's economy.
"Hyundai Steel is already demonstrating the reach that a transformative investment can have for Louisiana," Bourgeois has emphasized. "This project is creating jobs for Louisiana companies, forming a workforce around high-value manufacturing and driving new activity throughout the region even before production begins," he added, according to Yonhap.
The initiative is part of the $26 billion (about €22.375 billion) investment program announced last year by Hyundai Motor Group for the United States, after Hyundai Steel announced in March 2025 its intention to allocate $5.8 billion to the construction of its first steel plant in North America.
HPLS is configured as a joint venture between Hyundai Steel, Hyundai Motor, Kia, and POSCO. Hyundai Steel owns 50% of the capital, while Hyundai Motor and Kia each control 15%. POSCO holds the remaining 20%.