South Korea is one of the largest and most advanced steel producers in the world, driven by both its robust manufacturing sector and cutting-edge technological capabilities. The steel industry plays a pivotal role in supporting the country’s industrialization and infrastructure development. The market is characterized by the presence of dominant players, such as POSCO and Hyundai Steel, which have established themselves as leaders in both production and innovation.
The demand for steel in South Korea spans across several key industries, including construction, automotive, shipbuilding, and machinery. Additionally, the increasing emphasis on sustainable and green construction practices, along with the rise of smart buildings, is creating new opportunities for innovation in steel production and applications.
South Korea Steel Market Size
The South Korean steel market was valued at 50.40 million metric tons (MMT) in 2024. The country’s steel production is expected to grow at a steady pace, with a projected volume of 60.84 MMT by 2034. This represents a modest but steady increase over the next decade, driven by both domestic demand and South Korea’s role in the global steel supply chain.
The steel industry remains a cornerstone of South Korea’s manufacturing landscape, supporting major sectors like construction, automotive, and shipbuilding. The country’s ability to produce high-quality steel products is one of the key factors that maintain its competitiveness in the global market.
South Korea Steel Market Trends
- Smart Buildings and Green Construction: A significant trend shaping the South Korean steel market is the increasing focus on sustainable building practices. The demand for green construction materials is growing, and steel is being used in innovative ways to meet the criteria for smart, energy-efficient buildings.
- Technological Advancements in Steel Production: South Korea’s steel industry is embracing technological advancements to boost productivity and reduce environmental impact. New production methods, such as electric arc furnaces (EAF), are becoming more popular, allowing for more sustainable and cost-efficient steel manufacturing processes.
- Automotive and Shipbuilding: The automotive and shipbuilding industries continue to be major consumers of steel. The shift towards electric vehicles (EVs) and lighter, stronger materials is encouraging steelmakers to innovate in producing high-strength, lightweight steel products suitable for EVs and new ship designs.
- Recycling and Sustainability: Steel recycling rates are rising as South Korea continues to push for more eco-friendly practices within the industry. Steel scrap is increasingly being used in the production of new steel, helping reduce both production costs and environmental footprints.
South Korea Steel Market Growth
The South Korean steel market is expected to grow at a compound annual growth rate (CAGR) of 1.90% from 2025 to 2034. This growth will be supported by ongoing developments in key industries such as construction, automotive, and shipbuilding, as well as increasing demand for more sustainable steel products.
The shift towards green and smart building practices will further drive the need for advanced steel products that meet specific environmental and performance standards. Additionally, South Korea’s strategic investments in technological advancements and automation will support continued production efficiency, making it a strong player in the global steel market.
The rise in demand for specialized steel products, such as high-strength steel for automotive and energy-efficient steel for construction, will continue to provide new growth avenues for manufacturers. With a focus on innovation and sustainability, South Korea’s steel market is poised to remain resilient and competitive in the years to come.
South Korea Steel Market Segmentation
Breakup by Product
- Long Steel
- Flat Steel
- Forged Steel
Breakup by Genre
- Carbon Steel
- Stainless Steel
- Others
South Korea Steel Market Forecast (2025–2034)
By 2034, the South Korean steel market is expected to reach a volume of 60.84 MMT. Over the forecast period, key factors such as increased production of high-strength, lightweight steel, growing demand for eco-friendly building materials, and advances in manufacturing processes will all contribute to this growth.
The adoption of cutting-edge technologies and sustainable practices will allow South Korean manufacturers to expand into new sectors such as green construction, electric vehicles, and advanced shipbuilding. These shifts in the market will help maintain South Korea’s position as a global leader in steel production.
Competitive Landscape
POSCO Holdings: POSCO is the largest steel producer in South Korea and one of the largest in the world. The company is a key player in both domestic and global markets, producing a wide range of steel products for sectors such as automotive, construction, and shipbuilding. POSCO’s commitment to sustainability and technological innovation positions it as a leader in the South Korean steel market.
LG Corp.: Although LG is primarily known for its consumer electronics, it also has a significant presence in the steel industry through its subsidiary LG Corp. LG’s focus on innovation and sustainability has made its steel products a key choice for environmentally-conscious consumers, especially in green building applications.
Hyundai Steel: As part of the Hyundai Motor Group, Hyundai Steel is one of South Korea’s major steel producers. The company is heavily involved in the automotive and construction sectors, producing high-quality steel products for these industries. Hyundai Steel is also investing in technologies to improve production efficiency and reduce carbon emissions.
KOSTEEL Co., Ltd.: KOSTEEL is a well-established steel manufacturer in South Korea, offering a variety of steel products, including high-strength steel. The company is known for its innovative approaches to steel production and is focused on meeting the increasing demand for specialized steel products in the automotive and construction industries.
Hwanyoung Steel Ind. Co., Ltd.: Hwanyoung Steel is another key player in the South Korean steel market, specializing in producing high-quality steel products. The company is focused on expanding its market share by investing in new technologies and production processes that improve efficiency and sustainability.
