As the core region of global steel production and consumption, the zero-carbon transition of China, Japan, and South Korea is crucial for global climate goals and industrial chain sustainability. Hydrogen-based direct reduction iron (H-DRI) production, powered by renewable energy, is a promising pathway for reducing carbon emissions. This study compares the competitive dynamics of hydrogen-based steel production in China, Japan, and South Korea, with a particular focus on the levelized cost of energy (LCOE), levelized cost of hydrogen (LCOH), and levelized cost of steel (LCOS) as key metrics for evaluating the economic viability of green hydrogen-based steel production. And then compares and analyzes the competitiveness of China, Japan, and South Korea in hydrogen-based steel production, focusing on the role of green hydrogen and renewable energy in shaping the future steel industry. This study examines the impact of technological advancements, resource endowments, and policy support on H-DRI production. It highlights the importance of offshore wind power in Japan and South Korea, where its development plays a key role in reducing the cost of green hydrogen production and providing a stable electricity supply for H-DRI production. However, the high capital expenditures (CAPEXs) and labor costs associated with offshore wind power in these countries make importing relevant technologies and products from China a more cost-effective option. This study also explores the strategic importance of international cooperation and technology transfer, emphasizing the potential for China, Japan, and South Korea to strengthen bilateral collaboration in green hydrogen and H-DRI technologies. Such cooperation supports the region’s steel decarbonization efforts and enhances its global competitiveness. The integration of offshore wind power and hydrogen production technologies offers new opportunities for energy cooperation in East Asia, with China playing a key role in providing low-cost green energy solutions.