South Korea Electrical Steel Market

South Korea Electrical Steel Market Overview:

The South Korea electrical steel market size reached USD 799.88 Million in 2024. The market is projected to reach USD 1,214.53 Million by 2033, exhibiting a growth rate (CAGR) of 4.75% during 2025-2033. The market is steadily expanding with increasing demand from sectors such as automotive, electronics, and energy. Advances in steel manufacturing coupled with the emphasis on energy-saving products are driving expansion. Electrical steel finds extensive application in transformers, motors, and generators, with its importance cutting across the industrial and infrastructural projects of the country. With numerous types and uses, the market mirrors the numerous requirements of various industries. All these trends influence the total South Korea electrical steel market share.

South Korea Electrical Steel Market Trends:

Growing Demand from Renewable Energy Sector

As of March 2025, South Korea’s electrical steel market is experiencing significant growth due to the country’s aggressive shift toward renewable energy. The government’s carbon neutrality goal by 2050 has propelled investments in wind and solar power projects, which require high-quality electrical steel for transformers and generators. These components must be highly efficient, with minimal energy loss, to support green energy systems. As renewable infrastructure expands, manufacturers are focusing on enhancing electrical steel performance, particularly focusing on grain orientation and coatings that enhance magnetic properties. This growth is closely tied to broader energy policy reforms emphasizing sustainability and clean technology. The demand is expected to keep rising as South Korea scales up renewable capacity, making the South Korea electrical steel market growth an important indicator of progress in the energy transition. Suppliers are increasingly aligning production capabilities with these trends, aiming to meet stricter performance requirements while supporting the national clean energy agenda. This upward trend signals a strong outlook for electrical steel in South Korea’s rapidly transforming energy landscape.

Advancements in Manufacturing Technologies

In January 2024, advancements in manufacturing technology emerged as a key factor shaping South Korea’s electrical steel market trends. The adoption of state-of-the-art processing techniques, such as improved grain orientation and advanced coating methods, is enhancing the magnetic efficiency of electrical steel used in various sectors, including automotive, consumer electronics, and power generation. These innovations reduce energy loss in transformers and electric motors, directly contributing to energy savings and sustainability goals. Furthermore, smart manufacturing and automation are streamlining production, increasing precision, and lowering costs by minimizing waste. Digital technologies such as AI-driven process controls and real-time quality monitoring are being integrated, allowing manufacturers to better tailor electrical steel properties to specific applications. This technological progress bolsters the industry through enhanced product quality and competitiveness on the global stage. Continued investment in research and development (R&D) and process innovation is expected to maintain South Korea’s leadership in electrical steel production, catering to increasing demand for energy-efficient materials. Overall, these manufacturing improvements underpin the South Korea electrical steel market trends and its role in broader industrial modernization efforts.

Rising Urban Electrification and Infrastructure Projects

As of February 2025, growing urban electrification and infrastructure expansion are key drivers of South Korea's electrical steel industry. The rapid expansion of smart grids, electric vehicle charging stations, and urban transportation systems is driving demand for electrical steel with enhanced magnetic and electrical characteristics. These products are essential for delivering efficiency and reliability in contemporary electrical devices, such as transformers and electric motors. Government efforts to develop smart cities and increase green transport infrastructure are closely aligned with these material needs. The increasing focus on sustainable urban infrastructure directly contributes to the growth in the industry, mirroring the nation's overall strategy to improve energy efficiency and lower emissions in cities. Moreover, continuous improvement in power grid distribution and integration of renewable energy into urban power grids also fuels demand. The market is poised to be facilitated by continuous investments in infrastructure as the projects increasingly incorporate high-performance materials to meet performance and environmental requirements.

South Korea Electrical Steel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, application, and end use industry.

Type Insights:

• Grain Oriented Electrical Steel
• Non-Grain Oriented Electrical Steel

The report has provided a detailed breakup and analysis of the market based on the type. This includes grain oriented electrical steel and non-grain oriented electrical steel.

Application Insights:

• Transformers
• Motors
• Generators
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes transformers, motors, generators, and others.

End Use Industry Insights:

• Energy and Power
• Automobiles
• Household Appliances
• Building and Construction
• Others

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes energy and power, automobiles, household appliances, building and construction, and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include the Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Electrical Steel Market News:

• January 2024: POSCO has completed the first phase of its Hyper No non-oriented electrical steel sheet plant at Gwangyang Steel Works. This eco-friendly facility is designed to meet the growing demand from electric vehicle and premium appliance manufacturers. The plant's advanced technology aims to enhance energy efficiency in motors, aligning with global sustainability trends. POSCO's strategic investment underscores its commitment to leading in high-value steel production and supporting South Korea's industrial innovation.
• October 2024: JSW Group has joined hands with South Korean group POSCO to build a 5 million tonnes a year integrated steel factory in Odisha, India. The joint venture also aims to create battery materials for electric vehicles and renewable energy solutions to power the steel factory. The initiative will help fulfill India's increasing steel requirement and assist its energy transition objectives. The tie-up brings JSW's manufacturing prowess together with POSCO's technological strengths to fuel sustainable development in India's manufacturing space.

South Korea Electrical Steel Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea electrical steel market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea electrical steel market on the basis of type?
• What is the breakup of the South Korea electrical steel market on the basis of application?
• What is the breakup of the South Korea electrical steel market on the basis of end use industry?
• What is the breakup of the South Korea electrical steel market on the basis of region?
• What are the various stages in the value chain of the South Korea electrical steel market? 
• What are the key driving factors and challenges in the South Korea electrical steel?
• What is the structure of the South Korea electrical steel market and who are the key players?
• What is the degree of competition in the South Korea electrical steel market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea electrical steel market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea electrical steel market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea electrical steel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.