A high Fe-containing zirconium composition having excellent corrosion resistance and a preparation method thereof. Specifically, disclosed are a high Fe-containing zirconium composition having excellent corrosion resistance and a preparation method thereof, the composition comprising: 0.5-1.0 wt % iron; 0.25-0.5 wt % chromium; 0.06-0.18 wt % oxygen; at least one element selected from the group consisting of 0.2-0.5 wt % tin, 0.1-0.3 wt % niobium and 0.05-0.3 wt % copper; and the balance of zirconium. The zirconium alloy has excellent corrosion resistance, and thus can be used as a material for nuclear fuel claddings, spacer grids and nuclear reactor core structures in light water reactor and heavy water reactor nuclear power plants.