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Defining Low-Carbon Steel in Korea : Technology Pathways under the K-Steel Act

K-Steel Act marks the first policy framework to institutionally support the low-carbon transition of Korea’s steel industry, with the definition and standards of low-carbon steel emerging as a key issue. In the global market, benchmarks such as the EU CBAM, the First Movers Coalition, and SteelZero are taking shape, while conventional BF-BOF routes struggle to meet these standards. Practical transition pathways include the BF–EAF hybrid route, HyREX, and DRI–EAF, each facing challenges related to emissions performance, cost, and supply chains. A multi-technology strategy, rather than reliance on a single pathway, is required, with DRI–EAF positioned as a key option for early market entry. The K-Steel Act should clarify these technological pathways and support an integrated transition strategy aligned with power grid and hydrogen infrastructure development.

Green Steel: an Opportunity Closer Than You Think

To stay competitive in a steel market facing global oversupply and rising trade barriers, Korea must shift toward green steel. Demand is accelerating—especially from European automakers—with projections rising from 15 million tons in 2021 to over 200 million tons by 2030. Korea’s path to market entry is through DRI-EAF technology. EAF capacity is expanding, and using a 70% DRI and 30% scrap mix can cut emissions by 81% versus BF-BOF. But success depends on securing affordable, high-quality DRI.

A Net Zero Roadmap for South Korea's Petrochemical Industry

The net-zero roadmap for South Korea’s petrochemical industry charted by NEXT group presents strategies that envisage the sector gaining a sharper competitive edge in the global market while contributing to the effort to keep global warming within a 1.5°C rise.

Korea Net-Zero Steel Roadmap Ⅱ : with Five-Year Strategies to Achieve a 1.5°C-compliant Pathway

Net-Zero Roadmap for Korean Steel Industry (Korea Net-Zero Steel Roadmap) (hereinafter referred to as “K-NZS 1”), a report that NEXT group published in the summer of 2023, offered the most ambitious carbon reduction pathway ever proposed in South Korea, but the roadmap had limitations. It failed to align with the global goal of curbing the average temperature rise to within 1.5℃. This year, 2024, NEXT group publishes this report, Korea Net-Zero Steel Roadmap II (“K-NZS 2”), to revisit the analysis conducted by K-NZS 1 and present recommendations compatible with a 1.5℃ pathway. The new recommendations incorporate internal and external environmental changes including (i) the rapid growth of demand for green steel and (ii) the potential delays in supply of green hydrogen worldwide.

2050 Climate neutrality roadmap for Korea K-map scenario 2.0: Repowering Korea

This study is based on the "2050 Climate Neutrality Roadmap for Korea, K-Map Scenario: Implementing an ambitious decarbonization pathway for the benefit of future generations and the Korean economy" released in February 2022, which examines the potential for additional GHG reductions in five emission sectors: transition, industry, transportation, buildings and agriculture, and analyzes the necessary measures. The results of the analysis for each sector are presented in the order of updating the GHG reduction roadmap, analyzing the potential for additional reductions, and proposing necessary policies, with the aim of analyzing the sectors that need rapid transition to achieve carbon neutrality and strengthening national competitiveness. We hope this report will serve as a useful reference for policy makers and researchers working to achieve carbon neutrality.

Impending U.S. Carbon Tariffs

The Foreign Pollution Fee (FPF) Act is one of the U.S.' multiple attempts to implement trade regulations. The goal is to restrict imports to no more than 50% greater carbon intensity than the U.S. Korean-manufactured steel flat products are expected to be 65 to 69 percent more carbon-intensive than their U.S. counterparts, making it challenging for Korean steelmakers to avoid tariffs as the difference exceeds 50%. To secure the steel export market, a quick promotion of low-carbon technologies, such as using coke oven gas in blast furnaces to replace cokes partially and increasing inputs of scraps and direct reduced iron in basic oxygen furnaces, is necessary in the short and medium term. The government should ease the industry burden by supporting the procurement of scrap and DRI, the materials essential in the short and medium-term decarbonization process, and decarbonizing the national grid.

Costs of Climate Inaction of Emission-intensive Companies in Korea Series 2: Cement, Display, and Nonferrous Metal Industries

As a follow-up project of Costs of Climate Inaction of Emission-intensive Companies in Korea, this report identified and analyzed the magnitude of estimated climate-related risks of three most emission-intensive companies in Korea from the cement, display and nonferrous metals industries. These industries form the very foundations of Korea's industrial sector but their climate risks have not been actively discussed so far. According to the report, their operating profits will get reduced by as much as 44.6% in 2030 (compared to 2021). In sum, the report gives policy guidance on how the industry sector and the government can effectively handle the increasing climate-related risks.

2050 Carbon Neutrality Roadmap for Korea: K-Map Scenario for Industrial Sector

The "2050 Climate Neutrality Roadmap for Korea: K-Map Scenario" released in February 2022 laid out a more detailed and ambitious sectoral roadmap for Korea's climate neutrality than the government's proposal. This report covers details for the industrial sector only and provides an excellent source of reference for researchers and stakeholders who are interested in finding the optimal pathways for decarbonizing Korea's industrial sector.

2050 Climate Neutrality Roadmap for Korea: K-Map Scenario

On February 9, 2022 three independent energy and climate change think tanks in Korea, Green Energy Strategy Institute (GESI), Institute for Green Transformation and NEXT Group, in cooperation with Germany's Agora Energiewende, released the report "2050 Climate Neutrality Roadmap for Korea K-Map Scenario" (in Korean) that lays out a detailed and ambitious climate neutrality roadmap for Korea. An executive summary in English is available on this page.

Costs of Climate Inaction of Emission-intensive Companies in Korea Series 1: Steel, Semiconductor, Refining, Petrochemicals and Automotive Industries

The report analyzed the magnitude of estimated climate-related risks of five most emission-intensive companies in Korea. “Climate-related risks” refer to the potential financial risks posed by climate change to companies, investors, and the financial system. The study found climate-related risks are quickly penetrating into the financial realms of companies, and are expected to cause insolvency in financial structures by damaging operating profits by up to 24%p. In sum, the report gives policy guidance on how the industry sector and the government can effectively handle the increasing climate-related risks.