It is noted that KS D 3507 pipe steel has several problems when it is used as a city gas pipe at medium pressure. So new pipe steel, KS D 3631, was developed in order to be used as a pipe for medium and low pressure and now it is being substituted for D 3507. In this study, several mechanical tests, such as tensile test, microhardness test, and Charpy impact test were conducted to get material properties of D 3507 and D 3631 pipe steels. And also microstructures at the weld and heat affected zones were observed for the two materials. From the Charpy test results $K_{IC}/$ was estimated for the upper and lower shelf and the critical crack length is calculated for supposed axial semi-elliptical surface cracks. And the burst pressure is estimated as a function of wear depth for a defective D 3631 pipe by using the finite element method. The burst pressure is also calculated for pipes with an axial crack by using the published equations.