POSCO considering investment in Hyundai Steel's electric furnace steelworks in the U.S., strengthening North American strategy (South Korea)

It was revealed on the 13th that South Korean steel giant POSCO is considering taking a stake in a new electric furnace steel plant being built in Louisiana, USA, by Hyundai Steel, a subsidiary of the Hyundai Motor Group.
According to multiple industry sources, POSCO is apparently examining multiple strategic options regarding its investment in the US centered on Hyundai Steel's US base.
Hyundai Motor Group previously announced that it will build a 270,000 tonne annual production facility in Louisiana specializing in automotive steel sheets, aiming to start commercial production in 2029.
The company announced plans to build a 10,000-ton electric furnace steelworks in the city of Hyundai. Half of the total investment of $5.8 billion will be covered by external borrowings, and it plans to seek investment from affiliates, including Hyundai Steel, and external investors.
In this context, POSCO has emerged as a strong candidate for investment. For POSCO, the US is a strategically important market, and 20% of South Korea's steel exports were to the US last year.
POSCO itself exported about 500,000 tons of hot-rolled steel sheets to the U.S. last year. However, the previous Trump administration implemented Section 232 of the Trade Expansion Act, which prohibits the export of Korean steel.
In addition to the quantitative restrictions on imports (annual tariff-free quota of 2.63 million tons), the current administration, which has re-elected Mr. Trump, may impose a high tariff of 25%. This poses a risk factor for POSCO in expanding its business in the U.S. market.
In her New Year's address, POSCO Group Chairman Chang In-hwa said, "We will pursue a consistent localization strategy from materials to products in growing markets such as India and North America.
Regarding this matter, the POSCO Group said, "We are currently considering various strategic plans regarding our investment in the U.S., and no decision has been made at this point."
A comment was released.