36 Closures! Wave of Korean Steel Plant Shutdowns Spreads

According to comprehensive South Korean media reports on November 19, 2025, South Korea, the world's sixth-largest steel producer, has long relied on its steel industry to support core sectors such as automotive and shipbuilding. The Pohang Industrial Complex, the country's largest steel industrial park, has been a cornerstone of this industrial prowess. However, this "steel city," once a symbol of South Korea's industrial glory, is now facing its most severe crisis since its establishment.

From industry leader POSCO permanently shutting down its historic steel plants to Hyundai Steel indefinitely halting production lines, and with small and medium-sized enterprises collapsing one after another, the industrial park now stands desolate. Factories lie vacant, roadblocks are commonplace, and the once-bustling industrial hub has fallen silent. This crisis, which has spread from core enterprises to the entire industrial chain, has not only led to sharp declines in orders for scrap steel suppliers and left truck drivers with no goods to transport but has also shaken the very foundation of the local economy. The once-prosperous steel stronghold now risks sliding into a "rust belt."

Steel companies are halting operations one after another. POSCO is currently facing its most severe crisis since it first began operations in 1973. As a symbol of the Pohang steel industry, the company permanently shut down its Pohang No. 1 Steelworks and No. 1 Bar Mill last year—a permanent closure, not a temporary suspension. Hyundai Steel, South Korea's second-largest steelmaker, also indefinitely suspended operations at its Pohang No. 2 Steelworks in June of this year.

The wave of factory closures is spreading. The Pohang Industrial Complex, spanning approximately 4 million pyeong (about 13.2 million square meters), is centered around POSCO and hosts 356 companies, making it South Korea's largest steel industrial park. Korean media reports noted that within a 300-meter walk in the complex, three factories were found already closed. Some factories posted notices stating, "Temporarily suspended due to company circumstances," with roadblocks set up, while others stood with their gates wide open, revealing empty interiors.

Miju Steel, a small-to-medium-sized steel company with a 78-year history, ceased operations in September and was sold to another company. It is reported that a total of 36 factories in the Pohang Industrial Complex have halted operations, accounting for one-tenth of the total. An insider from the complex stated, "The remaining factories are barely managing to stay afloat." He added, "As the situation continues to worsen, the number of closures is likely to increase."