Korea announces $600 Million Investment in Hydrogen-Based Steelmaking Technology
4. September 2025Korea has unveiled plans to develop hydrogen-based steelmaking technology by 2030, aiming to strengthen the global competitiveness of its domestic steel industry and advance toward carbon neutrality. Following the completion of a recent feasibility study, the Ministry of Trade, Industry and Energy announced an investment of 814.6 billion won (approximately USD 600 million) over five years to support a demonstration project in partnership with the private sector. The initiative includes constructing a facility capable of producing 300,000 tons of hydrogen-reduced steel and molten iron. Products and components for hydrogen systems like pressure vessels usually require KGS factory registration in order to be approved for import and sale in Korea.
The hydrogen-based steelmaking process, which uses hydrogen gas instead of coal, can reduce carbon emissions by more than 95% compared to traditional methods. Korea intends to apply this technology to electric arc furnaces operated by small and medium-sized enterprises. A key part of the plan involves the utilization of FINEX—a strategic national technology—as an alternative, environmentally friendly method for steel production. FINEX allows direct use of iron ore fines and non-coking coal, offering a viable replacement for conventional blast furnaces. According to the ministry, the demonstration project is expected to position Korea as a leader in low-emission steel production by 2050.
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