- The steel industry is both a cornerstone of Korea’s economy and a major emitter of
greenhouse gases, accounting for about 40% of the country’s industrial emissions
and approximately 15% of its total emissions. Maintaining long-term competitiveness
of the steel industry hinges greatly on its decarbonization

- The Korean government plans to provide approximately USD 198.7 million (KRW
268.5 billion) in subsidies for low-carbon steel technologies, which is significantly
less compared to other countries. For instance, Germany, which produces less
than half the steel of Korea, is investing about 38 times more public funding on the
decarbonization of the steel industry

- By 2050, it is estimated that at least USD 14.8 billion (KRW 20 trillion) will be needed
to develop and commercialize Korea’s innovative hydrogen-based direct reduction
ironmaking (H2-DRI) technology, known as HyREX. However, the government’s
confirmed funding from 2023 to 2025 totals only about USD 20 million (KRW 26.9
billion)

- The Korean government must increase subsidies for the steel industry to maintain its
global competitiveness and reduce carbon emissions by rapidly developing H2-DRI
technology and transitioning production facilities away from coal