Seoul: Hyundai Steel Co., South Korea's second-largest steelmaker, announced a significant decline in net profit by 84 percent in 2025 compared to the previous year, attributing the drop to a downturn in the construction sector and increasing protectionism.

According to Yonhap News Agency, the company's net profit fell to 1.4 billion won (US$970,000) from 8.8 billion won the year before. A spokesperson for Hyundai Steel cited the prolonged slump in the construction industry and the impact of U.S. import tariffs as major factors affecting earnings. The United States currently enforces tariffs of up to 50 percent on steel imports from South Korea.

Despite the decrease in net profit, Hyundai Steel's operating profit rose by 37 percent, reaching 219.2 billion won from 159.5 billion won. However, sales experienced a decline of 2.1 percent, dropping to 22.73 trillion won from 23.22 trillion won. The increase in operating profit was supported by higher sales of high-end products and government measures to restrict low-priced steel imports.

In response to the challenging market conditions, Hyundai Steel plans to enhance profitability by starting mass production of third-generation advanced high-strength steel (AHSS) in the first quarter. The company also aims to expand the supply of thick steel plates for offshore wind power facilities and nuclear reactors this year.

Further, Hyundai Steel is constructing a 2.7 million-ton-per-year electric arc furnace (EAF) steel mill in Louisiana, anticipated to be operational by 2029. This facility will supply automotive steel to U.S. plants operated by Hyundai Motor Co. and Kia Corp. The company intends to begin construction in the third quarter and commence commercial production by the first quarter of 2029. This initiative is part of a larger $5.8 billion investment plan announced by Hyundai Steel in March last year, aligning with Hyundai Motor Group's broader U.S. investment strategy.