Can Korean Steel Forge a Sustainable Future? A Value Chain Analysis with Implications for Policy

Jae Yoon Lee () and Go Eun Lee ()
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Jae Yoon Lee: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr/en
Go Eun Lee: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.er.kr/en

No 23/20, Research Papers from Korea Institute for Industrial Economics and Trade

Abstract: The steel industry, which has been pivotal to the growth of the Korean manufacturing sector, remains a pillar of the Korean economy amid an ongoing transition into an advanced economy driven by cutting-edge technologies and services. As climate change looms as the predominant issue on almost all countries’ policy radar, however, the Korean steel industry faces significant challenges ahead, with rising pressure to achieve environmental sustainability. In this report, we analyze the structure and characteristics of the steel industry and its value chain, comparing its competitiveness to international counterparts with a view toward identifying implications for policy that might enhance the competitiveness of the Korean steel industry. Korea is the world’s fourth-largest steelmaker. But despite this, Korean steelmakers cannot rest on their laurels, and should strive to maintain their global position by accelerating electric-arc furnace production and shifting toward a low-carbon, high-value-added structure. In this paper we highlight the need for developing eco-friendly technologies such as hydrogen-based reduction methods, boosting product and value chain competitiveness, and securing robust legal, institutional, and infrastructure investment to ensure a sustainable future for the industry.

Keywords: steel; steel industry; climate change; emissions; greenhouse gases; sustainability; electric arc furnaces; electric arc steel; green steel; hydrogen reduction (search for similar items in EconPapers)
JEL-codes: L61 Q01 Q54 Q55 Q56 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2023-12-29
New Economics Papers: this item is included in nep-ene, nep-env and nep-inv
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