South Korea's coal imports fell for the fourth consecutive year in 2025, hitting a new low since 2014. The December imports also plunged to a six-month low.

In 2025, the country's coal imports declined 4.6% from 116 million tonnes a year ago to 110 million tonnes, with a value of $12.43 billion, down 24.43% year on year (YoY), the latest customs data showed.

South Korea's coal imports saw continuous declines over the recent years, primarily driven by shifts in global geopolitical landscapes and trading policies, ongoing energy transition, and slowing industrial activities at home.

The country aims to phase out coal-fired power plants by 2040, and achieve its target to cut emissions 68.8-75.3% from 2018 levels by 2035. It strives to establish a "more efficient power structure" that is centered on renewable energy and supplemented by nuclear power, with natural gas serving as an emergency backup. Thanks to the government's ongoing efforts, nuclear power has replaced coal to be the country's primary power source.

The slowdown in the country's economic growth and relatively mild weather also dampened demand for coal and power. Despite a 4.16% YoY increase in total installed power capacity in 2025, operating power capacity in the country dropped 0.33% YoY, while the power demand peaked at 96 GW, compared with 97.1 GW in 2024.

In December, the country imported 9.51 million tonnes of coal, down 10.69% YoY and 1.32% MoM. This marks the first time the volume has dropped below the 10-million mark since 2014.

The December imports were worth $1.07 billion, falling 21.77% YoY and 1.88% MoM. That put the average import price at $112.73/t, down 12.41% YoY and 0.57% MoM.

The mild winter in Northeast Asia from 2025 to 2026 temporarily bolstered coal's cost advantage over natural gas, but also suppressed additional energy consumption, slowing inventory drawdowns and weakening import restocking demand.

However, the favorable weather conditions also eased air pollution pressure, allowing coal-fired plants to maintain high utilization rates. This may lead to relaxed restrictions and improve operational efficiencies of coal power units.

During the month, the country's operating installed capacity reached 102.70 GW, up 7.37% MoM yet down 3.36% YoY. The power demand peaked at 82.8 GW, rising 8.73% MoM but declining 0.6% YoY.

Its coal-fired capacity was unchanged compared to November at 41.3 GW, while the combined installed capacity of solar and wind power increased 137 MW from the previous month.

Breakdown by coal type, thermal coal (other bituminous coal and other coal) imports stood at 6.31 million tonnes in December, down 11.98% YoY and 3.3% MoM. The imports accounted for 66.28% of the total, compared with 67.63% in November.

South Korea imported 2.45 million tonnes of coking coal in the month, up 6.71% YoY and 6.23% MoM, taking up 25.71% of the country's total coal imports.

PCI coal imports amounted to 621,400 tonnes in the month, decreasing 13.47% YoY yet increasing 24.58% MoM, occupying 6.53% of the total. Anthracite inflows came in at 141,000 tonnes, dropping 70.57% YoY and 55.89% MoM.

By origin, Australia, Indonesia, Colombia, Russia and Canada were the top five suppliers to South Korea in December 2025, accounting for 93.65% of the total coal imports, higher than 88.7% in November.

South Korea still imported most coal from Australia at 3.19 million tonnes in December, up 2.12% YoY and 1.16% MoM. It accounted for 33.58% of the total, lower than 32.75% a month ago.

Indonesia was the second largest supplier, with shipments at 2.18 million tonnes, sinking 29.84% YoY and 1.95% MoM, taking up 22.93% of the total.

Coal imports from Colombia totaled 1.49 million tonnes in the same month, surging 373.53% YoY and 129.29% MoM. The import volume represented 15.64% of the total.

Coal intakes from Russia and Canada were 1.47 million tonnes (-6.7% YoY, -21.52% MoM) and 577,200 tonnes (-13.61% YoY, -11.19% MoM) in December, respectively.

Notably, South Korea's coal imports from Colombia have surpassed those from Russia for the first time in 10 months. This reflects South Korean buyers' cautious approach toward Russian coal purchases due to concerns over potential government scrutiny.

Additionally, the country imported 65,200 tonnes of coke in December, 1.1 times higher YoY yet down 7.61% MoM. The country spent $11.08 million on coke imports, soaring 57.79% YoY but falling 1.91% MoM. The average import price was $169.98/t, down 26.21% YoY yet up 6.16% MoM.

For the whole year, South Korea imported a total 460,400 tonnes of coke, growing 123.14% YoY. The cumulative import value was $86.88 million, up 33.43% YoY.