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South Korea Steel Market

ID: MRFR/CnM/42489-HCR
111 Pages
Chitranshi Jaiswal
October 2025

South Korea Steel Market Research Report By Steel Type Outlook (Flat Long By Steel Product Outlook (Structural Steel Prestressing Steel) and By Steel Application Outlook (Building Construction Automotive Electrical Appliance)-Forecast to 2035

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Summary Table of Contents Segmentation Download PDF

South Korea Steel Market Summary

As per Market Research Future analysis, the South Korea steel market Size was estimated at 63.93 USD Billion in 2024. The South Korea steel market is projected to grow from 66.05 USD Billion in 2025 to 91.5 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.3% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The South Korea steel market is currently experiencing a shift towards sustainability and technological innovation.

  • Sustainability initiatives are increasingly shaping production practices in the South Korea steel market.
  • Technological advancements are driving efficiency and reducing costs in steel manufacturing processes.
  • The construction sector remains the largest segment, while the automotive sector is the fastest-growing segment in steel consumption.
  • Rising demand from the construction sector and government policies supporting the steel industry are key market drivers.

Market Size & Forecast

2024 Market Size 63.93 (USD Billion)
2035 Market Size 91.5 (USD Billion)
CAGR (2025 - 2035) 3.31%

Major Players

ArcelorMittal (LU), China Baowu Steel Group (CN), Nippon Steel Corporation (JP), POSCO (KR), JFE Steel Corporation (JP), Tata Steel Limited (IN), Thyssenkrupp AG (DE), United States Steel Corporation (US), Steel Authority of India Limited (IN)

South Korea Steel Market Trends

The steel market in South Korea is currently characterized by a dynamic interplay of domestic demand and international influences. The nation remains one of the leading producers of steel, driven by robust industrial activities, particularly in construction and automotive sectors. Recent government initiatives aimed at enhancing infrastructure development have further stimulated demand for steel products. Additionally, South Korea's strategic position in the Asia-Pacific region allows it to engage in significant trade relationships, impacting pricing and availability. As the market evolves, factors such as technological advancements and environmental regulations are likely to shape production methods and material usage. In November 2025, the steel market appears to be navigating challenges related to global supply chain disruptions and fluctuating raw material costs. The emphasis on sustainability is becoming increasingly pronounced, with manufacturers exploring eco-friendly production techniques. Furthermore, the competitive landscape is intensifying, as domestic firms strive to innovate and improve efficiency. Overall, the outlook for the steel market in South Korea suggests a period of adaptation and growth, influenced by both local and international trends.

Sustainability Initiatives

The steel market is witnessing a shift towards sustainable practices, driven by both regulatory pressures and consumer demand. Companies are increasingly investing in green technologies to reduce carbon emissions and enhance energy efficiency. This trend is likely to reshape production processes and product offerings, aligning with global sustainability goals.

Technological Advancements

Innovations in manufacturing processes are transforming the steel market. Automation and digitalization are being adopted to improve efficiency and reduce costs. These advancements may lead to higher quality products and faster production times, positioning South Korean firms competitively in the international arena.

Infrastructure Development

Government-led infrastructure projects are significantly influencing the steel market. Initiatives aimed at modernizing transportation networks and urban development are driving demand for steel. This trend suggests a sustained growth trajectory, as investments in infrastructure are expected to continue in the coming years.

Market Segment Insights

By End Use: Construction (Largest) vs. Automotive (Fastest-Growing)

The South Korea steel market exhibits varying market share distributions among its end-use segments. The construction segment holds the largest share due to significant infrastructure development and housing projects. Following closely are automotive and shipbuilding, while aerospace and consumer goods take smaller portions of the market. Each segment contributes uniquely to the overall demand for steel, reflecting different industrial needs and market dynamics. Growth trends in the South Korea steel market are driven by advancements in technology, stricter environmental regulations, and a shift towards sustainability. The automotive segment is witnessing fast-paced growth due to the increasing demand for lightweight materials and electric vehicles. Furthermore, construction continues to grow steadily as mega-projects are initiated, ensuring a robust future for the market, while aerospace and shipbuilding are expected to see moderate growth amidst global trends.

Construction (Dominant) vs. Automotive (Emerging)

The construction segment is a dominant force in the South Korea steel market, characterized by its reliance on heavy steel for infrastructure projects, residential buildings, and commercial spaces. It benefits from government initiatives and substantial investments in public works, fostering broad demand. In contrast, the automotive segment, while emerging, is rapidly gaining traction due to the transition towards electric vehicles, greater fuel efficiency, and innovations in automotive design. This segment emphasizes the use of advanced high-strength steels and lighter materials, appealing to manufacturers focused on enhancing performance and sustainability in vehicles. Together, these segments reflect the diverse applications of steel, shaping the market's landscape.

By Product Type: Flat Steel (Largest) vs. Long Steel (Fastest-Growing)

In the South Korea steel market, Flat Steel holds the largest market share, primarily driven by its versatile applications across various industries such as automotive, construction, and appliances. Long Steel, while currently smaller in share, is rapidly expanding due to increasing demand for infrastructure projects and housing developments, reflecting a broader trend towards urbanization and industrial growth in the region. The growth trends in the South Korea steel market are significantly influenced by government initiatives aimed at enhancing infrastructure and residential construction. Factors like rising investments in renewable energy projects and green building practices are also propelling the demand for both Flat and Long Steel. As businesses and consumers transition towards sustainable practices, the need for high-quality and durable steel products becomes paramount, further stimulating market growth.

Flat Steel (Dominant) vs. Alloy Steel (Emerging)

Flat Steel maintains its dominance in the South Korea steel market due to its extensive use in critical sectors. It offers advantages such as excellent strength, lightweight properties, and corrosion resistance, making it ideal for a wide range of applications from automotive to construction. In contrast, Alloy Steel is emerging as a key player, particularly in high-performance applications requiring enhanced mechanical properties. Its adaptability for specialized tasks, such as tooling and machining, positions Alloy Steel as a significant contender, capturing interest from industries focusing on innovation and efficiency. Both segments showcase distinct attributes that cater to evolving market needs.

By Manufacturing Process: Basic Oxygen Steelmaking (Largest) vs. Electric Arc Furnace (Fastest-Growing)

In the South Korea steel market, the manufacturing process segment exhibits a diverse landscape, with Basic Oxygen Steelmaking (BOS) capturing the largest market share due to its efficiency in mass production and cost-effectiveness. This method accounts for a significant portion of steel production, followed by Electric Arc Furnace (EAF), which is gaining traction due to its eco-friendliness and flexibility in sourcing raw materials. Other methods like Open Hearth Furnace, Ladle Refining Furnace, and Continuous Casting contribute to the overall production but hold smaller shares in comparison. The growth trends within this segment are largely attributed to increasing demand for high-quality steel and advancements in technology. Electric Arc Furnace is recognized as the fastest-growing process, driven by the shift towards sustainable manufacturing practices and innovations in energy efficiency. Meanwhile, Basic Oxygen Steelmaking remains dominant, supported by its established infrastructure and widespread use in various applications across the industrial sector.

Basic Oxygen Steelmaking (Dominant) vs. Electric Arc Furnace (Emerging)

Basic Oxygen Steelmaking is characterized by its ability to produce steel in large volumes with lower production costs, making it a dominant technology in the South Korea steel market. This method utilizes molten iron and a stream of oxygen, resulting in higher efficiency and reduced impurities in the final product. Conversely, the Electric Arc Furnace technology is emerging as a popular choice due to its environmentally friendly approach, utilizing recycled steel and consuming less energy. This method is especially favored for smaller batches and specialty steel production. The shift towards Electric Arc Furnace indicates a growing preference for green technologies as industries look to optimize sustainability while meeting diverse steel requirements.

By Application: Infrastructure (Largest) vs. Energy (Fastest-Growing)

The South Korea steel market displays a diverse application distribution, with Infrastructure holding the largest market share. Segments such as Transport and Industrial also play significant roles, but they are overshadowed by the robust demand for infrastructure projects, which are essential for economic development. In the backdrop, the Energy segment is rapidly emerging, driven by the transition towards renewable energy sources, which is altering steel demand patterns. Growth trends indicate that the Infrastructure segment benefits from government investments in construction and public works, promoting long-term stability. In contrast, the Energy segment is witnessing a surge in demand fueled by sustainability initiatives and innovations in steel applications. As industries focus more on green technologies, the Energy segment is expected to expand significantly, driven by advancements in materials technology and regulatory support.

Infrastructure: Dominant vs. Energy: Emerging

The Infrastructure segment in the South Korea steel market is characterized by its dominance, fueled by significant investments in construction and urban development projects. This segment requires high-strength steel for robust structures and buildings, catering to both private and public sectors. In contrast, the Energy segment is labeled as emerging due to its increasing relevance in the context of global sustainability trends. This segment is focused on producing specialized steel needed for wind turbines and solar panel frameworks, capitalizing on the shift towards renewable energy. As the industry embraces innovations, both segments are expected to reshape the market landscape, with Infrastructure maintaining its robust position while Energy quickly gains traction.

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Key Players and Competitive Insights

The South Korea steel market exhibits a competitive landscape characterized by a blend of established players and emerging strategies aimed at enhancing operational efficiency and market share. Key growth drivers include increasing demand for high-strength steel in automotive and construction sectors, alongside a push towards sustainability. Major companies such as POSCO (South Korea), ArcelorMittal (Luxembourg), and Nippon Steel Corporation (Japan) are strategically positioned to leverage innovation and digital transformation. POSCO, for instance, focuses on advanced manufacturing technologies, while ArcelorMittal emphasizes sustainability through its green steel initiatives, collectively shaping a competitive environment that prioritizes technological advancement and environmental responsibility.

In terms of business tactics, localization of manufacturing and supply chain optimization are pivotal. The market structure appears moderately fragmented, with a few dominant players exerting considerable influence. This fragmentation allows for niche players to thrive, yet the collective strategies of major companies like POSCO and ArcelorMittal create a competitive dynamic that encourages innovation and efficiency across the board.

In October 2025, POSCO (South Korea) announced a partnership with a leading tech firm to develop AI-driven solutions for predictive maintenance in steel production. This strategic move is likely to enhance operational efficiency and reduce downtime, reflecting a broader trend towards digitalization in the industry. Such initiatives not only improve productivity but also align with global sustainability goals by minimizing waste and energy consumption.

In September 2025, ArcelorMittal (Luxembourg) unveiled its plan to invest €1 billion in renewable energy projects across Europe and Asia, including South Korea. This investment underscores the company's commitment to reducing its carbon footprint and transitioning towards greener production methods. The strategic importance of this move lies in its potential to position ArcelorMittal as a leader in sustainable steel production, appealing to environmentally conscious consumers and investors alike.

In August 2025, Nippon Steel Corporation (Japan) launched a new line of high-strength steel products tailored for the automotive sector, aiming to capture a larger market share in South Korea. This product innovation is significant as it addresses the growing demand for lightweight materials that enhance fuel efficiency in vehicles, thereby aligning with industry trends towards sustainability and performance.

As of November 2025, the competitive trends in the steel market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances are becoming more prevalent, fostering collaboration that enhances innovation and operational capabilities. The shift from price-based competition to a focus on technological differentiation and supply chain reliability is evident, suggesting that companies will need to continuously innovate to maintain a competitive edge in this evolving landscape.

Key Companies in the South Korea Steel Market market include

Industry Developments

In recent months, the South Korean steel market has witnessed significant developments, particularly concerning major players like POSCO and Hyundai Steel. In October 2023, POSCO announced plans to increase its production capacity by 15% to meet rising domestic demand, a move expected to positively impact its market valuation.

Furthermore, Hyundai Steel is focusing on sustainable practices by investing in green steel technologies, aiming to reduce carbon emissions by 30% by 2030, which reflects a broader industry trend towards sustainability.Mergers and acquisitions have also been notable in this sector; in September 2023, Dongkuk Steel confirmed its acquisition of Sangam Steel, which aims to expand its product offerings and market share. Additionally, Hanwha Chemical is exploring potential collaborations with Nippon Steel Corporation to enhance its market position in high-strength steel products.

The competitive landscape in South Korea's steel market remains dynamic, driven by technological advancements and an increasing emphasis on sustainability. Over the past two to three years, the market has adapted to global supply chain challenges and evolving trade regulations, notably aligning to meet the goals set by the Korean government for a greener future.

Steel Market Segmentation Insights

Steel Market Steel Type Outlook Outlook

    • Flat
    • Long

Steel Market Steel Product Outlook Outlook

    • Structural Steel
    • Prestressing Steel

Steel Market Steel Application Outlook Outlook

    • Building Construction
    • Automotive
    • Electrical Appliance

Future Outlook

South Korea Steel Market Future Outlook

The steel market in South Korea is projected to grow at a 3.31% CAGR from 2024 to 2035, driven by infrastructure development, technological advancements, and increasing demand for sustainable materials.

New opportunities lie in:

  • Investment in advanced steel recycling technologies
  • Development of high-strength, lightweight steel products
  • Expansion into emerging markets with tailored steel solutions

By 2035, the steel market is expected to achieve robust growth and enhanced competitive positioning.

Market Segmentation

South Korea Steel Market End Use Outlook

  • Construction
  • Automotive
  • Aerospace
  • Shipbuilding
  • Consumer Goods

South Korea Steel Market Application Outlook

  • Infrastructure
  • Industrial
  • Transport
  • Packaging
  • Energy

South Korea Steel Market Product Type Outlook

  • Flat Steel
  • Long Steel
  • Metallic Coated Steel
  • Pre-Engineered Steel
  • Alloy Steel

South Korea Steel Market Manufacturing Process Outlook

  • Basic Oxygen Steelmaking
  • Electric Arc Furnace
  • Open Hearth Furnace
  • Ladle Refining Furnace
  • Continuous Casting

Report Scope

MARKET SIZE 202463.93(USD Billion)
MARKET SIZE 202566.05(USD Billion)
MARKET SIZE 203591.5(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)3.31% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies Profiled["ArcelorMittal (LU)", "China Baowu Steel Group (CN)", "Nippon Steel Corporation (JP)", "POSCO (KR)", "JFE Steel Corporation (JP)", "Tata Steel Limited (IN)", "Thyssenkrupp AG (DE)", "United States Steel Corporation (US)", "Steel Authority of India Limited (IN)"]
Segments CoveredEnd Use, Product Type, Manufacturing Process, Application
Key Market OpportunitiesAdoption of advanced manufacturing technologies to enhance efficiency in the steel market.
Key Market DynamicsIntensifying competition and regulatory pressures drive innovation and sustainability in South Korea's steel market.
Countries CoveredSouth Korea

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FAQs

What is the projected market size of the South Korea Steel Market in 2024?

The South Korea Steel Market is projected to be valued at 51.15 USD Billion in 2024.

What is the expected market size of the South Korea Steel Market by 2035?

By 2035, the South Korea Steel Market is expected to reach a value of 55.84 USD Billion.

What is the compounded annual growth rate (CAGR) for the South Korea Steel Market from 2025 to 2035?

The CAGR for the South Korea Steel Market from 2025 to 2035 is expected to be 0.54%.

What will be the market value of Flat steel in 2024?

The market value for Flat steel in the South Korea Steel Market is projected to be 25.5 USD Billion in 2024.

What is the expected market value of Long steel by 2035?

The expected market value for Long steel in the South Korea Steel Market by 2035 is 28.44 USD Billion.

Who are the key players in the South Korea Steel Market?

Major players in the South Korea Steel Market include Daewoo International, Nippon Steel Corporation, and Hyundai Steel among others.

Which type of steel is projected to have higher growth in the South Korea Steel Market?

The Long steel segment is projected to show higher growth compared to the Flat steel segment from 2025 to 2035.

What is the anticipated market value for Flat steel by 2035?

The anticipated market value for Flat steel in the South Korea Steel Market by 2035 is estimated at 27.4 USD Billion.

How will global economic factors affect the South Korea Steel Market?

The South Korea Steel Market may be influenced by various global economic factors, including trade policies and demand fluctuations.

What are the growth drivers for the South Korea Steel Market?

Key growth drivers for the South Korea Steel Market include increasing industrialization, infrastructure development, and demand in various applications.

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