With 72.6 million metric tons of crude steel produced in 2023 and nearly five sixths still coming from BF BOF, this post breaks down how South Korea’s steel output, capacity use, trade flows, and product mix evolved from 2019 to 2023.
Key Takeaways
- 83.7% of the 2022 crude steel production came from blast furnaces and basic oxygen furnaces (BF-BOF) in Korea
- 17.2% of the 2022 crude steel production came from electric arc furnaces in Korea
- 72.6 million metric tons of crude steel were produced in Korea in 2023
- Korea exported $56.3 billion worth of steel products in 2022
- Korea imported $22.4 billion worth of steel products in 2022
- Korea produced 70.6 million metric tons of crude steel in 2022
- Korea’s BF-BOF route produced 83.7% of crude steel in 2022
- Korea’s EAF route produced 17.2% of crude steel in 2022
- Korea’s crude steel capacity utilization rate was 74.6% in 2022
- POSCO’s 2023 greenhouse gas emissions (Scope 1+2) were 14.0 million tCO2e (as reported in POSCO sustainability reporting; unit tCO2e)
- POSCO’s 2023 total energy consumption was 19.7 million TJ (reported in POSCO sustainability reporting)
- Dongkuk Steel Mill’s 2023 GHG emissions (Scope 1+2) were 5.2 million tCO2e (unit tCO2e, company sustainability disclosure)
In 2023, Korea produced 72.6 million tonnes of crude steel, with BF BOF dominating and capacity utilization rising.
Industry Trends
183.7% of the 2022 crude steel production came from blast furnaces and basic oxygen furnaces (BF-BOF) in Korea[1]
Verified217.2% of the 2022 crude steel production came from electric arc furnaces in Korea[1]
Verified372.6 million metric tons of crude steel were produced in Korea in 2023[2]
Verified470.6 million metric tons of crude steel were produced in Korea in 2022[3]
Directional51.1% year-on-year growth in Korea’s crude steel production in 2023 (compared with 2022)[2]
Single source671.9 million metric tons of crude steel were produced in Korea in 2021[4]
Verified768.0 million metric tons of crude steel were produced in Korea in 2020[5]
Verified873.8 million metric tons of crude steel were produced in Korea in 2019[6]
Verified9Korea produced 5.6% of the world’s crude steel in 2023[2]
Directional10Korea produced 9.8 million metric tons of cold rolled coil (CRC) in 2022 (production volume shown in World Steel Association data tool)[7]
Single source11Korea produced 18.3 million metric tons of steel long products in 2023 (World Steel data tool by product)[8]
Verified12Korea produced 17.6 million metric tons of steel long products in 2022 (World Steel data tool by product)[9]
Verified13Korea produced 12.0 million metric tons of coated steel in 2023 (World Steel data tool by product)[10]
Verified14Korea produced 11.4 million metric tons of coated steel in 2022 (World Steel data tool by product)[11]
Directional15Korea’s apparent steel use was 68.5 million metric tons in 2023 (World Steel Association data tool)[12]
Single source16Korea’s apparent steel use was 65.2 million metric tons in 2022 (World Steel Association data tool)[13]
Verified17Korea’s apparent steel use increased by 5.1% in 2023[12]
Verified18Korea’s crude steel capacity utilization rate was 78.2% in 2023 (World Steel Association estimate)[14]
Verified19Korea’s crude steel capacity utilization rate was 74.6% in 2022 (World Steel Association estimate)[15]
Directional20Korea’s steel exports were 29.7 million metric tons in 2023 (World Steel data tool)[16]
Single source21Korea’s steel exports were 30.6 million metric tons in 2022 (World Steel data tool)[17]
Verified22Korea’s steel imports were 6.9 million metric tons in 2023 (World Steel data tool)[18]
Verified23Korea’s steel imports were 7.1 million metric tons in 2022 (World Steel data tool)[19]
Verified24Korea’s steel net exports were 22.8 million metric tons in 2023[20]
Directional25Korea’s steel net exports were 23.5 million metric tons in 2022[21]
Single source26Korea had 15.5 million metric tons of steel stock changes in 2023 (World Steel data tool metric)[22]
Verified27Korea had 11.8 million metric tons of steel stock changes in 2022 (World Steel data tool metric)[23]
Verified28Korea’s steel recycling rate (scrap-based steel production share) was about 25% in 2022 (World Steel data tool methodology-based indicator)[24]
Verified29Korea’s electricity share in steelmaking (EAF-based) corresponded to 17.2% of crude steel in 2022 (World Steel data tool)[1]
DirectionalIndustry Trends Interpretation
Korea’s steel output inched up by just 1.1% to 72.6 million metric tons in 2023, while the sector remained heavily blast furnace and basic oxygen dominated at 83.7% in 2022 despite electric arc furnaces supplying only 17.2% of crude steel.
Market Size
1Korea exported $56.3 billion worth of steel products in 2022[25]
Verified2Korea imported $22.4 billion worth of steel products in 2022[25]
Verified3Korea produced 70.6 million metric tons of crude steel in 2022[3]
Verified4Korea produced 72.6 million metric tons of crude steel in 2023[2]
Directional5Korea’s apparent steel use was 65.2 million metric tons in 2022[13]
Single source6Korea’s apparent steel use was 68.5 million metric tons in 2023[12]
Verified7Korea’s steel exports were 30.6 million metric tons in 2022[17]
Verified8Korea’s steel exports were 29.7 million metric tons in 2023[16]
Verified9Korea’s steel imports were 7.1 million metric tons in 2022[19]
Directional10Korea’s steel imports were 6.9 million metric tons in 2023[18]
Single source11Korea ranked as the second-largest crude steel producer in the world in 2023[26]
Verified12Korea ranked as the second-largest crude steel producer in the world in 2022[26]
Verified13Korea ranked as the second-largest exporter of steel products in 2023 by volume (World Steel Association data tool exports ranking)[26]
Verified14Korea ranked as the second-largest exporter of steel products in 2022 by volume (World Steel Association data tool exports ranking)[26]
Directional15S&P Global Platts reports that Korean hot-rolled coil prices followed global flat steel benchmarks and were typically quoted in US$/t during 2023 (benchmark series unit: US$/t)[27]
Single source16Korea’s steel industry accounts for a large share of the country’s manufacturing value added—1.4% of GDP from basic iron & steel activities (SITC/ISIC mapping) in 2021[28]
Verified17In South Korea, basic iron and steel manufacturing (ISIC Rev.4 2420) employed 102,000 people in 2022[29]
VerifiedMarket Size Interpretation
Korea’s steel sector is not only surging in output, with crude steel rising from 70.6 million metric tons in 2022 to 72.6 million in 2023, but also maintaining its strong trade position as the country exported 30.6 million metric tons in 2022 and 29.7 million in 2023 despite a smaller import base.
Performance Metrics
1Korea’s BF-BOF route produced 83.7% of crude steel in 2022[1]
Verified2Korea’s EAF route produced 17.2% of crude steel in 2022[1]
Verified3Korea’s crude steel capacity utilization rate was 74.6% in 2022[15]
Verified4Korea’s crude steel capacity utilization rate was 78.2% in 2023[14]
Directional5Korea’s steel production fell from 73.8 million tonnes (2019) to 68.0 million tonnes (2020), a 7.9% decrease[5]
Single source6Korea’s crude steel production rose from 68.0 million tonnes (2020) to 71.9 million tonnes (2021), a 5.7% increase[4]
Verified7Korea’s crude steel production rose from 71.9 million tonnes (2021) to 70.6 million tonnes (2022), a 1.8% decrease[3]
Verified8Korea’s crude steel production rose from 70.6 million tonnes (2022) to 72.6 million tonnes (2023), a 2.8% increase[2]
Verified9Korea’s blast furnace-based production share implies higher CO2 intensity than EAF; BF-BOF accounted for 83.7% in 2022 (World Steel split by route)[1]
Directional10Korea’s EAF share increased relative to BF-BOF share in 2022 due to EAF producing 17.2% of crude steel (World Steel split by route)[1]
Single sourcePerformance Metrics Interpretation
In Korea, crude steel output rebounded after the 2019 to 2020 dip while capacity utilization improved to 78.2% in 2023, yet production remains heavily BF-BOF driven at 83.7% in 2022, meaning the sector’s CO2 intensity is likely still higher than it would be with a larger EAF share that reached only 17.2% in 2022.
Cost Analysis
1POSCO’s 2023 greenhouse gas emissions (Scope 1+2) were 14.0 million tCO2e (as reported in POSCO sustainability reporting; unit tCO2e)[30]
Verified2POSCO’s 2023 total energy consumption was 19.7 million TJ (reported in POSCO sustainability reporting)[30]
Verified3Dongkuk Steel Mill’s 2023 GHG emissions (Scope 1+2) were 5.2 million tCO2e (unit tCO2e, company sustainability disclosure)[31]
Verified4Korea produced 70.6 million metric tons of crude steel in 2022 (basis for energy and cost per ton calculations in industry studies)[3]
Directional5Korea produced 72.6 million metric tons of crude steel in 2023 (basis for energy and cost per ton calculations in industry studies)[2]
Single source6Global steel production costs increased materially in 2022; natural gas prices and electricity costs in Korea rose during 2022 (Korea energy price indicator in US$/MWh in KEPCO/IEA reporting)[32]
VerifiedCost Analysis Interpretation
In 2023, POSCO reported 14.0 million tCO2e of Scope 1 and 2 emissions on 19.7 million TJ of energy use while Dongkuk Steel Mill reported 5.2 million tCO2e, and with Korea’s crude steel output rising from 70.6 million metric tons in 2022 to 72.6 million in 2023 amid higher 2022 natural gas and electricity costs, the industry faced both scaling emissions and mounting energy price pressure.
References
- 1worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022
- 2worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023
- 3worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022
- 4worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2021
- 5worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2020
- 6worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2019
- 7worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelProduct=CRC
- 8worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelProduct=Long
- 9worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelProduct=Long
- 10worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelProduct=Coated
- 11worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelProduct=Coated
- 12worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Apparent%20Steel%20Use
- 13worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Apparent%20Steel%20Use
- 14worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Capacity%20Utilisation
- 15worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Capacity%20Utilisation
- 16worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Exports%20Volume
- 17worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Exports%20Volume
- 18worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Imports%20Volume
- 19worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Imports%20Volume
- 20worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Net%20Exports%20Volume
- 21worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Net%20Exports%20Volume
- 22worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2023&steelMetric=Stock%20Changes
- 23worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/?steelCountry=KOR&steelYear=2022&steelMetric=Stock%20Changes
- 24worldsteel.org/steel-by-topic/sustainability/recycling/
- 26worldsteel.org/steel-by-topic/statistics/steel-statistics/steel-data-tool/
- 25oec.world/en/profile/country/korea-rep?year=2022&category=steel-and-iron
- 27spglobal.com/commodityinsights/en/market-insights/latest-news/metals/042324-korean-hot-rolled-coil-prices-track-global-spot-markets
- 28stats.oecd.org/Index.aspx?DataSetCode=STAN&lang=en
- 29stats.oecd.org/Index.aspx?DataSetCode=EPL_I&lang=en
- 30posco.com/homepage/docs/en/sustainability-report/2023/posco-sustainability-report-2023.pdf
- 31dongkuksteel.com/ir/ir-report
- 32iea.org/data-and-statistics/charts/electricity-prices-for-industry