South Korea Steel Market Outlook
According to the report by Expert Market Research (EMR), the South Korea steel market attained a volume of 50.40 million metric tons (MMT) in 2024. Supported by robust industrial demand, dynamic export potential, and continuous advancements in steelmaking technologies, the South Korea steel market size is projected to grow at a compound annual growth rate (CAGR) of 1.90% between 2025 and 2034, reaching approximately 60.84 MMT by 2034.
South Korea has long been recognised as one of the world’s leading producers and consumers of steel. The country’s steel industry is underpinned by major global players such as POSCO and Hyundai Steel, which have played a pivotal role in driving technological innovations and enhancing production capacities. Steel remains a critical component of South Korea’s industrial backbone, serving essential sectors such as construction, automotive, shipbuilding, and machinery manufacturing.
South Korea Steel Market Size and Share
South Korea is among the top six global steel producers and ranks high in per capita steel consumption. The market’s volume of 50.40 MMT in 2024 reflects a mature and well-established industry. Domestic steel production and consumption are largely driven by demand from the country’s robust export-oriented industries, particularly shipbuilding and automobiles, which require high-quality and specialised steel grades.
In terms of global market share, South Korea commands a significant portion of the Asian steel production landscape, trailing only behind China, India, and Japan. Its steel exports reach multiple international destinations, especially in Southeast Asia, Europe, and the Americas. The country’s capacity to produce value-added products such as advanced high-strength steel (AHSS) and electrical steel ensures its competitiveness in the global market.
South Korea Steel Market Trends
Several key trends are shaping the South Korea steel market:
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Green Steel and Decarbonisation Initiatives: Amid mounting global pressure to reduce carbon emissions, South Korean steelmakers are investing heavily in low-carbon steel production technologies, including hydrogen-based direct reduced iron (DRI) and electric arc furnaces (EAF). These initiatives align with South Korea’s national carbon neutrality goals.
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Technological Upgrades: Automation, digital twin technology, and AI-integrated process optimisation are being adopted across the industry to improve production efficiency, reduce energy consumption, and enhance product quality.
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High-Performance Steel Products: There is increasing demand for advanced and specialty steels, including ultra-high-strength steels for automotive safety, corrosion-resistant steels for shipbuilding, and grain-oriented electrical steels for electronics and energy sectors.
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Reshoring and Supply Chain Resilience: The COVID-19 pandemic and geopolitical uncertainties have prompted manufacturers to strengthen domestic supply chains, thereby stimulating local demand for steel.
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Drivers of Growth
Multiple factors are driving the South Korea steel market forward:
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Automotive Industry Demand: South Korea is home to major global car manufacturers, such as Hyundai and Kia. The growing shift towards electric vehicles (EVs) and lightweight vehicles continues to fuel demand for high-performance steel products.
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Infrastructure Development: The government’s focus on smart cities, urban redevelopment, and public infrastructure enhancement stimulates consistent demand for structural steel products.
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Export Competitiveness: South Korean steelmakers maintain a competitive edge through high product quality, technological innovation, and customer-centric services. Export growth is a major contributor to industry performance.
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Energy Transition: The development of offshore wind power and other renewable energy projects necessitates the use of specialised steel structures and materials, creating new growth opportunities.
Technology and Advancement
The South Korean steel industry is at the forefront of technological innovation. Key developments include:
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Hydrogen Steelmaking: POSCO has initiated plans to implement hydrogen-based steelmaking as part of its “Green Steel” strategy. This could revolutionise steel production by eliminating carbon emissions associated with traditional blast furnace operations.
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Smart Manufacturing: Digitalisation through AI, IoT, and big data analytics allows for real-time monitoring, predictive maintenance, and enhanced process control, contributing to greater operational efficiency.
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Recycling and Circular Economy: Increasing emphasis is placed on steel recycling and the circular economy model, supported by investments in advanced electric arc furnaces and scrap processing facilities.
South Korea Steel Market Segmentation
The market can be divided based on product and genre.
Market Breakup by Product
- Long Steel
- Flat Steel
- Forged Steel
Market Breakup by Genre
- Carbon Steel
- Stainless Steel
- Others
Key Players
Some of the major players explored in the report by Expert Market Research are as follows
- POSCO Holdings
- Hyundai Steel
- KOSTEEL Co., Ltd.
- Hwanyoung Steel Ind. Co., Ltd.
- Dongil Ind. Co., Ltd
- Korea Iron & Steel Co., Ltd
- SeAH Besteel Corporation
- SeAH CSS Corp.
- KG Steel Co., Ltd.
- TCC Steel.co.
- Others
Challenges and Opportunities
While the South Korea steel market demonstrates resilience and long-term potential, it faces several challenges:
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Global Overcapacity: Oversupply in the global steel market, particularly from China, exerts downward pressure on prices and profitability.
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Raw Material Volatility: Fluctuations in the prices of iron ore, coking coal, and other raw materials impact production costs and margins.
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Environmental Compliance: Adapting to stringent environmental regulations requires substantial capital investment and innovation.
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Labour and Demographic Constraints: The ageing workforce and skill shortages present challenges for the industry’s future workforce sustainability.
However, these challenges are counterbalanced by multiple opportunities:
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Green Transformation: The global pivot towards carbon neutrality opens avenues for South Korea to lead in green steel production and export.
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Growing EV Market: The rising demand for lightweight and high-strength steel in EV manufacturing creates new markets for specialised steel products.
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Strategic Trade Agreements: South Korea’s participation in regional trade pacts such as RCEP enhances market access and export opportunities.
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Digital Steel Ecosystems: The integration of digital platforms and smart logistics into the steel supply chain can significantly improve agility and customer responsiveness.
Market Forecast
Looking ahead, the South Korea steel market is projected to steadily expand from 50.40 MMT in 2024 to 60.84 MMT by 2034, growing at a CAGR of 1.90%. This growth will be underpinned by stable domestic demand, technological advancements, and expansion into green and value-added steel segments.
In the short to medium term, the market is expected to benefit from post-pandemic economic recovery, infrastructure stimulus projects, and export diversification. Over the longer term, the transition to green steel, digital transformation, and deepening integration into global value chains will be instrumental in shaping the future trajectory of the South Korea steel industry.
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