In this paper, we report economic feasibility studies focusing on profitability analysis of high pressure polymer electrolyte membrane (PEM) water electrolysis for distributed H-2 refueling stations in Korea. From capital and operating costs, a unit H-2 production cost of 6.24 $ kgH(2)(-1) was obtained for a H-2 capacity of 700 m(3) h(-1), which is equivalent to handling about 300 fuel cell electric vehicles. Based on cost estimations, profitability analysis using cash flow diagrams was performed to assess the economic feasibility of high pressure PEM water electrolysis and various key economic indicators like net present value (NPV), discounted payback period (DPBP), and present value ratio were obtained for both different discount rates and capacity factors. In conclusion, employment of high pressure PEM water electrolysis was found to be economically profitable showing reasonably high NPVs (16-52 MM$) and short DPBPs (4-7 years).