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Under the deal INI Steel will receive up to five million tonnes of iron ore and up to three million tonnes of coal from 2010.
The company was recently cleared to build South Korea's second integrated steel mill, in Chungcheong province. Hyundai Motor plans to spend five trillion won ($A6.74 billion) on construction of the complex in Dangjin, 130km south of Seoul.
INI will commission the construction of two blast furnaces with 3.5Mt capacities – one to be completed by 2010 and the other by 2011.
The completed Dangjin complex will raise INI's annual steel production to 17Mt from 2.9Mt and follows the construction of South Korea's first integrated steel mill by the country's top steelmaker POSCO.
Hyundai Motor also owns South Korean steelmaking units Hyundai Hysco and BNG Steel, which have 4.5Mt and 300,000t capacities respectively.
