Signal KEEI projects Korean coal demand to fall 3.7 percent a year to 2030 across power, industry and buildings

Summary

Coal demand in Korea is projected to decline by 3.7 percent a year from 2025 to 2030, with falls in power generation, industry and buildings alike. Coal for power is expected to shrink in every year except 2028 because of transmission limits into the capital region, the conversion of coal plants to other fuels and government restrictions on coal-fired generation. Industrial coal use may rise slightly in 2026, led by steel, as a POSCO Pohang FINEX plant restarts and shipbuilding stays strong. After that, weak output in steel, petrochemicals and cement and a switch to cleaner fuels are expected to push industrial coal demand down. Coal is thus the fastest-declining source in the outlook, while gas, renewables and nuclear expand.