The South Korean government has approved a KRW 814.6 billion feasibility study for hydrogen-based steelmaking, to be carried out from 2026 to 2030. Backed by KRW 308.8 billion in government funding, the project brings together industry, academia, and research institutions. 

A demonstration plant with an annual capacity of 300,000 tons will be built, using iron ore fines and hydrogen to produce low-carbon iron and steel. The project also explores the use of hydrogen-reduced iron in electric arc furnaces, particularly for small and medium-sized enterprises. 

The initiative is based on POSCO and Primetals Technologies’ FINEX process, which allows direct use of iron ore fines and non-coking coal, reducing both costs and emissions. 

South Korea is the second Asian country, after Japan, to establish national funding for green steelmaking. While adoption remains slow due to high costs, the government plans further support to ensure a stable transition.