Why Did Hyundai Steel’s Net Profit Plummet by 84% in 2025?
Synopsis
Hyundai Steel's dramatic profit fall raises concerns about the steel industry in South Korea. The 84% drop in net profit for 2025 signals severe challenges ahead, driven by a downturn in construction activities and escalating tariffs. How will the company adapt to these pressures and what does it mean for the future of steel manufacturing?
Key Takeaways
Hyundai Steel's net profit fell by 84% in 2025.
Construction sector downturn and U.S. tariffs are key factors.
Operating profit increased by 37% due to premium product sales.
Plans to mass-produce advanced high-strength steel.
New steel mill in Louisiana expected to boost automotive steel supply.
Seoul, Jan 30 (NationPress) Hyundai Steel Co., the second-largest steel producer in South Korea, reported on Friday a staggering 84% decline in net profit for the year 2025 compared to the previous year, attributed to a slump in the construction industry and increasing protectionist measures.
The company's net profit fell to 1.4 billion won (approximately $970,000) last year, down from 8.8 billion won the prior year, according to a press statement.
A spokesperson for the company noted, "The ongoing downturn in the construction sector alongside escalating protectionism, particularly U.S. import tariffs, has negatively impacted our earnings," as reported by the Yonhap news agency.
Currently, the U.S. levies tariffs as high as 50% on steel imports from South Korea.
Despite these challenges, Hyundai Steel saw its operating profit rise by 37% to 219.2 billion won compared to 159.5 billion won in the same timeframe. However, sales dipped by 2.1% to 22.73 trillion won from 23.22 trillion won.
The company attributed the increase in operating profit to a rise in sales of premium products and government initiatives designed to limit the influx of inexpensive steel imports.
In a bid to enhance profitability, Hyundai Steel plans to commence mass production of third-generation advanced high-strength steel (AHSS) in the first quarter and broaden its supply of thick steel plates for offshore wind power facilities and nuclear reactors this year.
The company is also constructing a new 2.7 million-ton-per-year electric arc furnace (EAF) steel mill in Louisiana, anticipated to be completed by 2029. This facility is intended to supply automotive steel to U.S. operations of its affiliates, Hyundai Motor Co. and Kia Corp.
Hyundai Steel has expressed its intention to start construction of the mill in the third quarter and to initiate commercial production in the first quarter of 2029. The $5.8 billion investment plan was announced in March last year as part of Hyundai Motor Group's comprehensive U.S. investment strategy.
Point of View
It is essential to recognize the profound implications of Hyundai Steel's profit decline. This incident not only reflects the struggles of a significant company but also highlights broader economic challenges in South Korea's steel sector. With increasing protectionism and a lagging construction industry, the implications of these trends warrant close monitoring.
NationPress
21 Jun 2026
Frequently Asked Questions
What caused Hyundai Steel's profit decline?
Hyundai Steel's profit fell due to a downturn in the construction sector and rising protectionism, specifically U.S. tariffs on steel imports.
How much did Hyundai Steel's net profit drop?
Net profit dropped by 84% , from 8.8 billion won the previous year to 1.4 billion won in 2025.
What are Hyundai Steel's plans for the future?
Hyundai Steel aims to increase profitability by mass-producing advanced high-strength steel and expanding supplies for offshore wind power and nuclear reactors.
