Techno-economic viability studies of employing a membrane reactor (MR) equipped with H-2 separation membranes for methane steam reforming (MSR) were carried out for H-2 production in Korea using HYSYS (R), a well-known chemical process simulator, including economic analysis based on itemized cost estimation and sensitivity analysis (SA). With the reaction kinetics for MSR reported by Xu and Froment, the effect of a wide range of H-2 selectivity (10-10,000) on the performance in an MR was investigated in this study. Because of the equilibrium shift owing to the Le Chatelier's principle, great performance of enhancement of methane conversion (XCH4) and H-2 yield and reaction temperature reduction was observed in an MR compared with a packed-bed reactor (PBR). A window of a H-2 selectivity from 100 to 300 is proposed as a new criterion for better MR performance of MSR depending on potential applications from in-depth analysis of XCH4 and H-2 yield enhancements, a H-2 purity, and temperature reduction. In addition, economic analysis to evaluate the feasibility of an MR technology for MSR was carried out focusing on a levelized cost of H-2 based on itemized cost estimation of capital and operating costs as well as SA. Techno-economic assessment showed 36.7% cost reduction in an MR compared with a PBR and revealed that this MR technology can be possibly opted for a cost-competitive H-2 production process for MSR.