Steel’s transformation  철강 산업의 대전환  | report

• Steel is among the most energy- and capital-intensive industries to transform to clean, Korea’s steel sector stands at an inflection point
• Korea has built one of the world’s most valuable steel industries, ranked fifth globally by export value – supplying high grade steel used in cars, ships and electrical equipment
• Now global overcapacity and trade tensions are putting the Korean steel under strain
• Tightening carbon border style policies and China’s shift to hydrogen-based steel making are the two defining trends
• Clean steel brings different competitiveness and employment outcomes – creating more value, up to fourfold per plant, for Korean industry, but market certainty is needed for investment

Korea is one of a number of countries across the East Asian region where the steel sector is facing a pivotal moment, this is the first in a series of reports where we examine the opportunities for countries to reinforce the foundations of their industrial strength.

Carbon-conditioned trade is arriving fast: the EU’s Carbon Boarder Adjustment Mechanism (CBAM) will place around $7.7 bn of Korean exports under a carbon cost when it extends to vehicles and machinery from 2028. As more markets follow, more Korean exports will face carbon-conditioned access, with high-carbon blast furnace steel most exposed. Meanwhile, China is undertaking the largest shift to hydrogen-based steel making of any country – more than 10 Mtpa under way.​

The transition to clean steel opens up a real opportunity for Korea, one larger than it appears. This report explores the emerging opportunities created by low-carbon pathways for the Korean steel industry: where the largest new value pools; how Korea can take advantage of the shifting plates of global trade and how to ensure clean jobs and prosperity are safeguarded.

Korea is one of a number of countries across the East Asian region where the steel sector is facing a pivotal moment, this is the first in a series of reports where we examine the opportunities for countries to reinforce the foundations of their industrial strength.

Steel’s transformation | Korean report 2026 | English download

철강 산업의 대전환 | Korean report 2026 | Korean download