Yeo Han-gu, head of the Ministry of Trade, Industry and Energy's Trade Negotiation Headquarters, speaks at an industry meeting related to the CPTPP membership application held at the Korean Chamber of Commerce and Industry in Jung-gu, Seoul on April 27.  (Maekyung DB)
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Steel industry strong on expectations of Korea joining CPTPP… Head of Trade Headquarters asks member ambassadors to support joining Korea

Yeo Han-gu, head of the Ministry of Trade, Industry and Energy’s Trade Negotiation Headquarters, speaks at an industry meeting related to the CPTPP membership application held at the Korean Chamber of Commerce and Industry in Jung-gu, Seoul on April 27. (Maekyung DB)

Steel stocks strengthened in the domestic stock market as expectations for Korea’s accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) grew. It is expected that the increase in steel exports according to the agreement will lead to favorable results.

On April 28, Korea Steel closed the transaction at the upper limit of 6,700 won. The stock price, which reached the upper limit immediately after opening, drew an upward curve throughout the day. Daehan Steel (5.71%), SeAH Steel (4.89%), Hyundai Steel (4.73%), Posco Holdings (4.32%), and Korea Steel (2.04%) also finished rising side by side.

The reason steel stocks rose all at once was that Korea was more likely to join the CPTPP. CPTPP is a multilateral free trade agreement (FTA) formed by 11 countries in the Asia-Pacific region, including Japan and Australia, and is a large economic consultative body accounting for 15.2% of global trade as of 2019. Earlier, on April 15, the government held a meeting of foreign economy ministers and finally confirmed the promotion of CPTPP membership.

By joining the agreement, the export market with the agreement countries such as Mexico, Vietnam, and Malaysia will expand, and the disadvantageous conditions may be improved compared to competitors such as Japan. This is because countries with free trade agreements benefit from tariffs on imports and exports. In particular, the industry expects that exports will increase in areas such as steel and textiles.

In addition, on the 28th, Yeo Han-gu, head of the Ministry of Trade, Industry and Energy’s Trade Negotiation Headquarters, met with ambassadors to Korea of ​​member countries of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) at the Lotte Hotel in Seoul and asked for member countries’ interest and support for Korea’s application for membership. Director Yeo said, “By resolving the plan to join the CPTPP, we have taken an important first step toward joining the agreement. We will do our best to quickly complete domestic procedures such as reporting to the National Assembly.”

Accordingly, the Ministry of Trade, Industry and Energy reported that the CPTPP member ambassadors to Korea agreed that Korea was a strong candidate for membership in the CPTPP and supported Korea’s decision to apply for membership. “As a leading trade powerhouse in the Asia-Pacific region and an industrial and technological powerhouse, Korea’s accession to the CPTPP will also contribute to strengthening the regional supply chain,” Yeo stressed.

[신은빈 인턴기자]


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