Hyundai Steel has decided to close its second plant in Pohang, North Gyeongsang Province...the aftermath of a recession

Amid the sluggish steel industry, Hyundai Steel has reportedly decided to close its second plant in Pohang, North Gyeongsang Province.

It is understood that Hyundai Steel has decided to suspend the operation of the second plant in Pohang and notified its executives and employees.

"We understand that Hyundai Steel has been struggling due to the economic downturn, but decided to close it to increase production and operational efficiency," an industry source said.

The plant scheduled to be closed is a facility related to steelmaking and rolling processes, accounting for about 3% of Hyundai Steel's total production.

The decision to suspend operations comes as major domestic steelmakers suffer from falling unit prices and sluggish domestic demand due to oversupply of iron ore products from China.

Earlier in July, Hyundai Steel filed an anti-dumping complaint, saying it was suffering from Chinese companies' exports of low-cost back plates.