This study presents an improved method that uses the elastic and inelastic system buckling analyses for determining the K-factors of steel column members. The inelastic system buckling analysis is based on the tangent modulus theory for a single column and the application is extended to the frame structural system. The tangent modulus of an inelastic column is first derived as a function of nominal compressive stress from the column strength curve given in the design codes. The tangential stiffness matrix of a beam-column element is then formulated by using the so-called stability function or Hermitian interpolation functions. Two inelastic system buckling analysis procedures are newly proposed by utilizing nonlinear eigenvalue analysis algorithms. Finally, a practical method for determining the K-factors of individual members in a steel frame structure is proposed based on the inelastic and/or elastic system buckling analyses. The K-factors according to the proposed procedure are calculated for numerical examples and compared with other results in available references.