Hyundai Steel Reports 84% Net Profit Decline in 2025 Due to Construction Sector Slump and U.S. Tariffs
Hyundai Steel Co. reported an 84% decline in net profit for 2025, falling to 1.4 billion won due to a slump in the construction sector and U.S. tariffs on steel imports. Despite a 37% increase in operating profit, overall sales decreased by 2.1%. To improve profitability, the company plans to mass-produce advanced high-strength steel in 2026 and is constructing a new steel mill in Louisiana, expected to be completed by 2029.
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Hyundai Steel Co., South Korea's second-largest steelmaker, reported an 84% decline in net profit for 2025, dropping to 1.4 billion won ($970,000) from 8.8 billion won in 2024. This decline is attributed to a downturn in the construction sector and increased protectionism, including U.S. tariffs of up to 50% on steel imports from South Korea.
Operating profit increased by 37% to 219.2 billion won, while sales fell by 2.1% to 22.73 trillion won. To enhance profitability, Hyundai Steel plans to commence mass production of third-generation advanced high-strength steel (AHSS) in Q1 2026 and expand supplies for offshore wind and nuclear projects. The company is also constructing a 2.7 million-ton-per-year electric arc furnace steel mill in Louisiana, set to be completed by 2029, supporting U.S. automotive steel supplies.
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