Market Intelligence
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South Korea Coal Market

South Korea remains an important market for U.S. coal producers, particularly suppliers of metallurgical coal used in steelmaking. Although Korea’s overall thermal coal market is expected to shrink over the long term as coal-fired generation declines, U.S. suppliers can still compete for market share through supplier diversification, recurring tenders, competitive delivered pricing, and suitable technical specifications. U.S. engineering, carbon capture, utilization and storage (CCUS), carbon-management, and power-generation equipment companies may also find opportunities to work with Korean partners on modernizing and repurposing existing coal-fired assets.

South Korea remains a large, import-dependent coal market, but the outlook differs sharply between thermal coal used for power generation and metallurgical coal used for steelmaking. Korea’s combined bituminous coal imports fell from approximately 112.9 million metric tons (MT) in 2023 to 105 million MT in 2025, driven largely by a decrease in thermal coal imports from 90.7 million MT in 2023 to 80.9 million MT in 2025. U.S. thermal coal exports to Korea likewise declined from 3.46 million MT in 2024 to 2.35 million MT in 2025.

By contrast, metallurgical coal imports increased from 22.2 million MT in 2023 to 25 million MT in 2024 before easing to 24.1 million MT in 2025. U.S. metallurgical coal exports to Korea rose from approximately 1.08 million MT in 2024 to 1.4 million MT in 2025. This increase reflects Korean steel producers’ continued reliance on imported coking coal for blast-furnace production.

Opportunities for U.S. Coal Suppliers and U.S.–ROK Power-Sector Cooperation
South Korean power generators procure thermal coal through a combination of multi-year contracts and short-term spot tenders. Although existing three-to-five-year contracts can limit an immediate shift in sourcing, public procurement bidding records show recurring opportunities throughout the year. U.S. suppliers should therefore monitor Korean GENCO procurement cycles and expected contract renewals continuously, and engage early with buyers so that qualification documents, logistics, commercial terms, and coal specifications are ready before tenders open.

U.S. suppliers can compete for market share through supplier diversification, recurring tenders, competitive delivered pricing, and suitable technical specifications. Korean power generators already use U.S. thermal coal, demonstrating its suitability for existing facilities when plant-specific requirements are met. In addition to price and freight costs, Korean buyers evaluate calorific value, sulfur, ash, moisture, volatile matter and fixed carbon, the Hardgrove Grindability Index (HGI), ash-fusion characteristics, and blending compatibility. Recent Korean tenders have specified minimum calorific values in the 5,300-5,600 kcal/kg range together with plant-specific sulfur and ash limits. U.S. exporters should therefore be ready to provide complete, consistent quality data and demonstrate technical compatibility in addition to competitive delivered pricing.

With South Korea limiting support for new overseas coal plants and retiring portions of its domestic fleet, bilateral U.S.-Korea cooperation will likely focus on existing assets. The most relevant opportunities include Carbon capture, utilization and storage (CCUS), efficiency and emissions reduction upgrades, repurposing of existing coal assets, and related engineering services. Korean companies’ experience in utility-scale boilers, plant retrofit and maintenance, emissions control systems, and large-scale project execution could support joint projects involving existing U.S. coal-fired power plants.

For more information on U.S.–Korea coal trade, Korean GENCO procurement, coal-quality requirements, or opportunities for U.S.-Korea cooperation on carbon management and retrofit projects, please contact the local U.S. Commercial Service office near you: https://www.trade.gov/commercial-service-offices-us and/or the U.S. Commercial Service Korea: Nathan Huh, Senior Commercial Specialist, Nathan.Huh@trade.gov for a consultation.