The Democratic Party of Korea is strategically focusing on hydrogen production from nuclear power plants near the Pohang Iron and Steel Plant to enhance synergy between eco-friendly steel production and distributed energy. Presidential candidate Lee Jae-myung's industrial pledge includes 'hydrogen reduction steel' at the forefront, with discussions on leveraging electricity from nearby nuclear power plants for hydrogen production. This move is part of the party's strategy to address global environmental regulations like the EU's Carbon Border Adjustment System and to introduce next-generation steel technology. Hydrogen reduction steel technology involves using hydrogen as a reducing agent instead of coal, resulting in only water as a by-product and significantly reducing carbon emissions. The production of 'pink hydrogen' from nuclear power plants is being explored, offering a stable supply with low carbon emissions, making it a viable alternative in the steel industry. While green hydrogen (renewable energy-based) is considered the most eco-friendly, its unstable output and high production costs limit its scalability. However, commercializing hydrogen reduction steel technology has challenges and requires substantial investment. Korea aims to complete a demonstration by 2030 and secure commercial technology by 2035, with a significant budget allocated for this purpose. The government is exploring options like establishing a special purpose corporation (SPC) and expanding tax credits to facilitate technology commercialization. Moreover, the Democratic Party of Korea is contemplating synergies between the steel industry, solar power, wind power, and regional distributed energy, particularly in Gwangyang. By potentially expanding tax credits for carbon-free conversion investments, the party aims to foster a hydrogen reduction steel cluster in Pohang and Gwangyang. Overall, this initiative not only aligns with decarbonization goals but also aims to boost the competitiveness and sustainability of the Korean steel industry.