GM Korea Company is set to replace China’s Baoshan Iron & Steel Company as a key supplier of automotive steel, as General Motors’ South Korean vehicle manufacturing subsidiary looks to decouple its supply chain from China in response to continued trade tensions between Washington and Beijing, according to local reports.
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GM Korea is understood to have selected local steel producer Hyundai Steel Company to replace Baoshan, which is reported to have accounted for around 20% of GM Korea’s steel purchases last year. This includes some 100,000 tons of sheet steel annually, valued at around KRW 180 billion (US$ 132 million).
Industry sources have suggested that GM Korea has already notified Baoshan of its decision to terminate its supply contract, effective from September 2025. GM Korea is understood to have begun the process of validating steel products from Hyundai Steel.
GM Korea sold a total of 499,559 vehicles globally last year, of which around 95% were exported, with the US market taking in around 85% of the company’s total vehicle output.
