Due to the prolonged economic downturn, Hyundai Steel planned to suspend the operations of its No.2 plant in Pohang, but the labor union opposed it and negotiations reached a deadlock. Therefore, the company has recently withdrawn this suspension directive.

In the third quarter of this year, the company suffered a net loss of 16.2 billion won, and its performance was affected by the impact of China's low-priced steel. The output of the No.2 plant accounts for about 5% of the total.

The domestic steel industry is accelerating its restructuring due to the economic recession and rising industrial electricity prices, and the downturn is expected to last until the first half of next year. Pohang Mayor Lee Kang-Deok called on labor and management to cooperate to deal with the crisis jointly.