Coal market in South Korea

Earlier Report Observations

The coal market volume in South Korea began to decline from 2018, falling from 149.9 million tonnes to 142.5 million tonnes in 2019, primarily due to the implementation of seasonal fine dust management measures that reduced coal-fired power plant utilization rates. This policy-driven reduction in energy-sector coal consumption was compounded by a slowdown in the steel industry, which limited industrial demand.

The COVID-19 pandemic in 2020 caused a sharp contraction in coal demand, particularly for power generation, pushing the market volume down to 124.5 million tonnes. In the following years, market volume stabilized around 126 million tonnes, though environmental regulations continued to suppress coal-fired generation. Incidents such as Typhoon Hinnamnor in 2022 temporarily halted steel production, further dampening industrial coal consumption, while rising fuel costs for coal power added downward pressure on demand.

By 2023, South Korea's coal imports fell as the country diversified suppliers away from Russia, increasing purchases from South Africa and the United States. Despite a record increase in domestic coal production that year, overall demand continued to decline, with imports dropping to 115.6 million tonnes in 2024 amid ongoing emission-reduction policies and a structural shift in energy consumption.

Production coal in South Korea

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

South Korea's coal production has declined for the third year in a row. In 2020, the country produced 1,019 thousand tonnes of coal, which represents a 6.0% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 31.4%, translating to an annualized decline rate of 11.8%.

Annual dynamics of production in South Korea in kind, 2017-2020, K t

Exports coal from South Korea

Exports in kind, M t

South Korea's coal exports have dropped for the third consecutive year. In 2020, exports amounted to 0.0 million tonnes, marking a sharp decline of 47.5% from 2019. Between 2017 and 2020, exports plummeted by 99.7%, with an annualized rate of decrease of 85.3%.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, M t

From 2017 to 2020, China was the primary destination for South Korea's coal exports in volume terms, accounting for 89.8% of the total. The remaining exports were distributed among a variety of smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South Korea in kind, 2017-2020

Exports in value, M $ US

South Korea's coal export value has fallen for the third year running. In 2020, export value reached 0.1 million US dollars, down 49.5% year-over-year. Over the 2017-2020 period, exports decreased by 96.5%, with a compound annual growth rate (CAGR) of -67.4%.

Annual dynamics of product's exports from South Korea in value, 2017-2020, M $ US

During 2017-2020, China and Japan together absorbed 86.7% of South Korea's coal export value. The rest was spread across a range of smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South Korea in value, 2017-2020

Imports coal to South Korea

Imports in kind, M t

South Korea's coal import volume has declined for the second consecutive year. In 2020, imports totaled 123.5 million tonnes, a 12.7% drop from the previous year. Over the 2017-2020 period, imports decreased by 16.7%, with a CAGR of -5.9%. The peak was in 2018 at 148.7 million tonnes, which saw a modest increase of 0.3% that year.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, M t

From 2017 to 2020, Australia, Indonesia, and Russia were the top contributors to South Korea's coal imports in volume terms. Australia accounted for 34.5%, Indonesia for 24.0%, and Russia for 20.0%, together making up 78.5% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South Korea in kind, 2017-2020

Imports in value, M $ US

South Korea's coal import value has decreased for the second year in a row. In 2020, imports were valued at 9,504 million US dollars, down 32.6% from 2019. Over the 2017-2020 period, import value fell by 36.9%, with a CAGR of -14.2%. The highest value was recorded in 2018 at 16,556 million US dollars, which experienced a 9.9% increase that year.

Annual dynamics of product's imports to South Korea in value, 2017-2020, M $ US

Throughout 2017-2020, Australia, Russia, and Indonesia were the key partners for South Korea's coal imports in value terms. Australia represented 38.7%, Russia 19.9%, and Indonesia 15.0%, collectively accounting for 73.6% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South Korea in value, 2017-2020