Hyundai Steel's Dangjin plant/ Courtesy of Hyundai Steel

Hyundai Steel said Friday it has shifted to an emergency management mode in response to growing challenges, including the recent imposition of steel tariffs by the United States and an ongoing strife with unionized workers.

The company announced that all executives have taken a 20 percent pay cut effective Thursday, while the company has begun reviewing a voluntary retirement program for employees.

In addition, the company plans to minimize overseas business trips and implement extreme cost-cutting measures across operations.

The decision by Hyundai Steel, Korea's second-biggest steelmaker by sales, reflects the mounting pressure facing the domestic steel industry.

Hyundai Steel has already scaled back operations at its Pohang plant due to weakened demand caused by a downturn in the domestic construction market. It is also grappling with the influx of low-priced steel products from China and Japan, which have eroded its domestic market share.

The company's situation has been exacerbated by U.S. President Donald Trump's decision to impose a 25 percent tariff on steel imports to America, including goods from Korea, which went into effect this week.

Additionally, Hyundai Steel has been locked in prolonged wage negotiations with its labor union since September. The union has conducted multiple strikes, including partial and full-scale walkouts, disrupting production.

"Without strong self-rescue measures, improving the company's financial situation amid the severe domestic and global crises would be extremely difficult," the company said. (Yonhap)