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 (KRW268.5 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