While global steel production may have cooled in 2023, Korea's materials industry is forging a far hotter future, pivoting with stunning agility from foundational steel exports to become the high-tech powerhouse feeding our world's hunger for batteries, semiconductors, and next-generation composites.
Key Takeaways
- In 2023, South Korea's crude steel production totaled 66.7 million metric tons, marking a 4.2% decline from 2022 due to global demand slowdowns.
- POSCO's hot-rolled coil production capacity stood at 21.5 million tons per annum as of end-2023, with utilization rate of 78.3%.
- South Korea produced 5.82 million tons of galvanized steel sheets in 2022, accounting for 12.4% of global output.
- South Korea's steel exports to the US reached $4.2 billion in 2023, up 12% from 2022.
- In 2022, Korea imported 28.5 million tons of iron ore, mainly from Australia at 72% share.
- POSCO exported 15.7 million tons of steel products in 2023, to 120 countries.
- South Korea's materials industry market size was KRW 450 trillion in 2023, growing 5.8% YoY.
- Steel sector market capitalization reached $120 billion in 2023 for top firms.
- Battery materials market in Korea projected to hit $50 billion by 2025.
- POSCO Holdings' revenue from materials was KRW 85 trillion in 2023, up 3.2%.
- LG Chem's sales in advanced materials division hit KRW 35 trillion in 2023.
- Samsung SDI's battery materials revenue KRW 22 billion in 2023, profit margin 18%.
- South Korea invested KRW 15 trillion in materials R&D in 2023, 40% for batteries.
- POSCO developed 2nd gen AHSS with 1.5GPa strength in 2023.
- LG Energy Solution's solid-state battery prototype achieved 900Wh/kg in 2023.
Korea's materials industry is strong and diversifying, especially in advanced and battery materials.
Company Performance
- POSCO Holdings' revenue from materials was KRW 85 trillion in 2023, up 3.2%.
- LG Chem's sales in advanced materials division hit KRW 35 trillion in 2023.
- Samsung SDI's battery materials revenue KRW 22 billion in 2023, profit margin 18%.
- SK Innovation's refining & materials EBITDA KRW 4.5 trillion in 2023.
- Hyundai Steel's operating profit KRW 1.2 trillion in 2023.
- Lotte Chemical net sales KRW 28 trillion in materials in 2023.
- Korea Zinc's revenue from zinc & metals KRW 12 trillion, ROE 15%.
- Hanwha Solutions materials division sales KRW 18 trillion in 2023.
- Dongkuk Steel's EBITDA KRW 850 billion in 2023.
- SeAH Besteel's pipe sales volume 1.4 million tons, revenue KRW 5 trillion.
- LS-Nikko Copper's refined copper sales 1.1 million tons in 2023.
- Soulbrain's semiconductor materials sales KRW 2.8 trillion, growth 25%.
- Posco Chemical's cathode material sales 120,000 tons, revenue KRW 3.5T.
- ECOPRO BM's high-nickel cathode revenue KRW 1.9 trillion in 2023.
- Dongjin Semichem photoresist sales KRW 1.2 trillion, market leader.
- Iljin Materials' copper foil sales for batteries KRW 1.5 trillion.
- Toray Advanced Materials Korea revenue KRW 4.2 trillion in 2023.
- SK ie technology separator sales volume 5 billion sqm, revenue KRW 2T.
- LG Innotek's display materials sales KRW 3.1 trillion.
- Kolon Industries' film materials revenue KRW 2.5 trillion in 2023.
- S-Oil's petrochemical products sales 8.2 million tons, KRW 15T.
- GS Caltex materials revenue KRW 20 trillion, profit KRW 1.8T.
- Hyosung Chemical's tire cord sales KRW 1.8 trillion.
- Tekkosha Korea's steel cord production 250,000 tons, sales KRW 1T.
- LIG Nex1's advanced materials R&D spend KRW 500 billion.
- POSCO International's trading volume materials 20 million tons.
- HDC Hyundi's chemical sales KRW 10 trillion in 2023.
Company Performance Interpretation
Korea’s industrial landscape is a giant, meticulously assembled puzzle where each multi-trillion-won piece, from steel and batteries to petrochemicals and semiconductors, hums with quiet, serious money, proving that the bedrock of a modern economy is literally built on materials.
Export and Import Data
- South Korea's steel exports to the US reached $4.2 billion in 2023, up 12% from 2022.
- In 2022, Korea imported 28.5 million tons of iron ore, mainly from Australia at 72% share.
- POSCO exported 15.7 million tons of steel products in 2023, to 120 countries.
- Korea's chemical materials exports hit $150 billion in 2023, led by plastics at 35%.
- In 2023, battery materials exports from Korea totaled $25.6 billion, up 45% YoY.
- South Korea imported $8.7 billion worth of semiconductor materials in 2022.
- Steel exports to ASEAN countries were $10.3 billion in 2023, 28% of total.
- In 2022, Korea's rare earth materials imports reached 12,000 tons, 90% from China.
- LG Chem exported 1.2 million tons of engineering plastics in 2023.
- Korea's aluminum exports totaled 850,000 tons in 2023, value $2.1 billion.
- In 2023, copper cathode exports from Korea were 450,000 tons to Japan and China.
- SK Innovation's separator exports for batteries hit $3.5 billion in 2023.
- Korea imported 5.2 million tons of scrap steel in 2022 for recycling.
- In 2023, advanced composites exports reached $1.8 billion, up 22%.
- Samsung SDI exported cathode materials worth $4.2 billion in 2023.
- Korea's petrochemical exports to Europe were $12.4 billion in 2022.
- In 2023, graphite anode material exports totaled 180,000 tons.
- Steel pipe exports hit 3.1 million tons in 2023, mainly OCTG.
- Korea imported $6.5 billion in photoresists for semis in 2023.
- In 2022, superalloy exports for aerospace were $950 million.
- Lotte Chemical's PE exports reached 2.5 million tons in 2023.
- Korea's EV battery cell exports value was $20.1 billion in 2023.
- In 2023, carbon fiber exports totaled 8,500 tons, up 30%.
- Zinc exports from Korea were 750,000 tons in 2022.
- Korea imported 1.1 million tons of ferrosilicon in 2023.
- In 2023, display materials exports hit $18.2 billion.
- Hanwha Solutions exported 1.8 million tons of PVC in 2023.
- Korea's total materials trade surplus was $45.3 billion in 2023.
Export and Import Data Interpretation
South Korea's industrial might is a masterclass in high-stakes alchemy, expertly transforming massive raw material imports into a diverse and lucrative export empire, from American-bound steel and Chinese-dependent rare earths to the explosive growth of battery materials powering the global energy transition, all while maintaining a formidable trade surplus.
Market Size and Growth
- South Korea's materials industry market size was KRW 450 trillion in 2023, growing 5.8% YoY.
- Steel sector market capitalization reached $120 billion in 2023 for top firms.
- Battery materials market in Korea projected to hit $50 billion by 2025.
- Chemical materials industry revenue totaled KRW 280 trillion in 2022.
- Semiconductor materials market share of Korea globally at 22% in 2023.
- Advanced composites market size in Korea was $4.2 billion in 2023, CAGR 12%.
- POSCO's market share in global HRC steel at 7.5% in 2023.
- Korea's cathode active materials market valued at $15 billion in 2023.
- Petrochemicals market grew to KRW 150 trillion in 2023.
- Non-ferrous metals market size KRW 60 trillion in 2022.
- EV materials sector expected CAGR 25% to 2030 in Korea.
- Display materials market revenue $22 billion in 2023.
- Steel processing market valued at $80 billion in Korea 2023.
- LG Energy Solution's battery market share 14% globally in 2023.
- Carbon nanomaterials market in Korea $1.5 billion in 2023.
- Shipbuilding steel market size $10 billion in 2023.
- Engineering plastics market grew 8% to KRW 25 trillion in 2023.
- Rare metals recycling market $3.2 billion in Korea 2023.
- Photoresist market share Korea 65% global in 2023.
- Advanced ceramics market $5.8 billion in 2023.
- POSCO Chemicals' anode market value $2.1 billion in 2023.
- Korea's biomaterials market projected $12 billion by 2028.
- Stainless steel market size KRW 40 trillion in 2023.
- Electrolyte solution market $4.5 billion in Korea 2023.
- Superconductor materials market emerging at $500 million in 2023.
- Korea's total materials R&D investment was KRW 25 trillion in 2023.
- Nanomaterials market size reached $2.8 billion in 2023.
Market Size and Growth Interpretation
Korea's materials industry isn't just playing with Legos; it's strategically forging, compounding, and refining the critical building blocks — from dominant semiconductors and explosive EV batteries to steadfast steel — that will power both its own and the world's technological future, all backed by colossal investments in research and ambition.
Production Statistics
- In 2023, South Korea's crude steel production totaled 66.7 million metric tons, marking a 4.2% decline from 2022 due to global demand slowdowns.
- POSCO's hot-rolled coil production capacity stood at 21.5 million tons per annum as of end-2023, with utilization rate of 78.3%.
- South Korea produced 5.82 million tons of galvanized steel sheets in 2022, accounting for 12.4% of global output.
- NLMK's stainless steel production in Korea reached 1.2 million tons in 2023, up 15% YoY driven by automotive demand.
- Korea's aluminum primary production was 0.45 million tons in 2022, with secondary production at 1.8 million tons.
- In 2023, flat steel production in South Korea hit 45.3 million tons, representing 68% of total steel output.
- Union Steel's wire rod production volume was 2.1 million tons in 2022, focusing on high-strength variants for construction.
- South Korea's silicon steel production for transformers reached 0.92 million tons in 2023, up 8.7%.
- In 2022, Korea's cold-rolled steel coil output totaled 18.4 million tons, with 55% exported.
- Dongkuk Steel produced 6.8 million tons of crude steel in 2023, achieving 92% capacity utilization.
- Korea's titanium production capacity expanded to 15,000 tons annually by 2023 via new VSMPO alliances.
- In 2023, magnetic steel production in Korea was 1.1 million tons, vital for EV motors.
- SeAH Steel's seamless pipe production reached 1.5 million tons in 2022, up 10%.
- Korea's copper refined production was 0.72 million tons in 2023, with 40% from recycling.
- In 2022, high-strength steel plate production hit 3.2 million tons, mainly for shipbuilding.
- POSCO's electrical steel production volume was 0.75 million tons in 2023.
- Korea Zinc's lead production totaled 280,000 tons in 2022.
- In 2023, alloy steel production in South Korea reached 12.4 million tons.
- Korea's magnesium production capacity is 30,000 tons per year as of 2023.
- In 2022, special steel production volume was 4.1 million tons, up 6.5%.
- Hyundai Steel's H-beam production was 1.2 million tons in 2023.
- Korea's nickel refined production hit 45,000 tons in 2023.
- In 2023, line pipe steel production totaled 2.8 million tons for energy sector.
- POSCO's API steel grade production capacity is 5 million tons annually.
- Korea's zinc slab production was 1.05 million tons in 2022.
- In 2023, automotive steel sheet production reached 22.5 million tons.
- Korea's tinplate production volume was 0.68 million tons in 2022.
- In 2023, construction steel rebar output totaled 15.3 million tons.
- LS Steel's color-coated steel production was 1.8 million tons in 2023.
- Korea's total non-ferrous metal production value was KRW 45 trillion in 2022.
Production Statistics Interpretation
While South Korea's steel industry shows its muscle with dominant global market shares and a sophisticated shift towards high-value, specialized products for autos and energy, its foundation flexes a concerning bruise from a 4.2% dip in total output, revealing a heavyweight still vulnerable to the global economic chill.
R&D and Innovation
- South Korea invested KRW 15 trillion in materials R&D in 2023, 40% for batteries.
- POSCO developed 2nd gen AHSS with 1.5GPa strength in 2023.
- LG Energy Solution's solid-state battery prototype achieved 900Wh/kg in 2023.
- Korea's patent filings in battery materials topped 5,200 in 2022.
- Samsung Advanced Institute developed EUV photoresist with 8nm resolution.
- SK On's dry electrode process reduced costs 30% in pilot 2023.
- Government funded KRW 2 trillion for semiconductor materials self-sufficiency.
- POSCO Chemical's NCM-98 cathode material yield reached 95%.
- Korea Institute of Materials Science developed graphene-copper composites 50% stronger.
- ECOPRO's recycling tech recovers 99% lithium from spent batteries.
- Soulbrain's ALD precursors for 2nm nodes commercialized in 2023.
- Hyundai Steel's green steel using hydrogen pilot produced 1,000 tons.
- Korea registered 12,000 materials patents internationally in 2023.
- LG Chem's bio-based PET plastic with 70% plant content.
- Toray Korea's carbon fiber tow 24K 7μm diameter mass-produced.
- Posco's AI-optimized steel rolling reduced energy 15%.
- KIMM developed titanium alloy for aerospace with 20% weight reduction.
- Samsung SDI's Si-anode with 40% higher capacity than graphite.
- R&D centers in materials industry numbered 450 in Korea 2023.
- Iljin's copper foil thickness down to 4.5μm for high-density batteries.
- Dongjin Semichem's KrF photoresist defectivity <0.1/cm².
- SK ie tech's ceramic-coated separator safety improved 2x.
- Korea's materials startups funded KRW 1.5 trillion in 2023.
- Hanwha developed bio-PP resin for automotive interiors.
- NIST collaborated with Korea on quantum dot materials efficiency 95%.
- POSCO ICT's digital twin for materials simulation reduced dev time 40%.
- LNE's electrolyte with flame-retardant additives for safety.
- Korea Advanced Institute filed 300 patents in nanomaterials 2023.
R&D and Innovation Interpretation
While some nations are merely playing in the materials science sandbox, Korea has built an entire, highly strategic, and increasingly self-sufficient industrial fortress, brick by brilliant brick, from quantum dots and AI-optimized steel to solid-state batteries and atomic-layer-deposited chips.
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