Industry Minister Ahn Duk-geun, left, enters a conference room with POSCO CEO Lee Hee-geun, right, and Hyundai Steel CEO Seo Gang-hyeon, center, to participate in a meeting to discuss countermeasures against U.S. steel tariffs at POSCO Center in Seoul, Thursday. Yonhap

The government has yet to come up with any practical countermeasures, a day after the United States started imposing 25 percent tariffs on steel and aluminum imports from all countries and nullified up to 2.63 million tons of an annual tariff-free quota it had agreed upon with Korea during U.S. President Donald Trump's first term in 2018.

Acting President Choi Sang-mok ordered relevant ministries in a meeting on Thursday to prevent any possible disruption in the domestic market in the aftermath of a potential oversupply of steel products that were initially supposed to be shipped to the U.S.

In an interview with the Wall Street Journal, however, Choi denied any plans to impose retaliatory tariffs on imports of U.S. products, a stark contrast from the stance of Canada and the European Union, both of which decided to immediately retaliate against the U.S. metal tariff.

Although the acting president called for all-out efforts for negotiations with the U.S., the government has yet to disclose how it will convince Washington.

Industry Minister Ahn Duk-geun said the same day that the government would announce plans to overcome risks facing the steel industry this month.

"Through various channels, including high-level talks, the government will go all out to cope with this issue," he said during a meeting with the CEOs of domestic steelmakers, mentioning Trade Minister Cheong In-kyo's departure for the U.S. this week.

Ahn also asked companies to make efforts to counteract the changing international trade environment.

"Companies should consider heightened uncertainties as a constant variable and proactively review investment and export strategies focused on highly value-added products," he said.

SMEs and Startups Minister Oh Young-ju, right, inspects GJ Aluminium's factory in Hwaseong, Gyeonggi Province, Wednesday. Yonhap

The Ministry of SMEs and Startups indicated its intention to focus more on supporting the market diversification of small manufacturers of products made with steel and aluminum rather than helping them continue exporting their products to the U.S.

"The government will help tariff-hit small- and medium-sized enterprises (SMEs) to normalize their business and diversify their export destinations," SMEs Minister Oh Young-ju said Wednesday.

Last month, the Korea Investors Service forecast that domestic steelmakers will face an additional cost of up to $890 million if the U.S. levies a 25 percent metal tariff as planned. Considering the U.S. imposition of tariffs on products made with steel and aluminum, the cost appears to be bigger than expected.

In response, POSCO will push ahead with global sales of highly value-added products, such as high-manganese steel. Hyundai Steel will seek to establish new export strategies to capitalize on the abolishment of the tariff-free quota.

A steel industry insider said that steelmakers want the government to enable them to compete with their Japanese rivals in the U.S. market under equal conditions. Japan has been trying to exempt the country's steelmakers from the U.S. tariff, although Washington has yet to accept Tokyo's request.

"The best scenario is Washington's designation of Korea as a country that is exempt from the metal tariff, but it seems unlikely, given the absence of the top decision-maker in the government," a metal industry official said on condition of anonymity.

As concerns are also growing about the potential oversupply of low-priced Chinese steel products in the domestic market following intensifying global protectionism, the government cited plans to build taller trade barriers against dumping as well. Earlier this week, the industry ministry decided to reinforce the Korea Trade Commission to better investigate unfair trade practices.

"The government is working to bolster trade safeguard measures, strengthening the monitoring of imported goods and any attempt to circumvent anti-dumping regulations," the industry minister said.