A k-carrageenan–iron complex (KC–Fe) was synthesized by complexation between degraded KC and FeCl₃. Furthermore, KC–Fe and ammonium polyphosphate (APP) were simultaneously added into waterborne epoxy (EP) to improve its flame retardancy and smoke suppression performance. The structure and properties of KC–Fe were assessed using Fourier transform infrared spectroscopy (FTIR), ultraviolet (UV) spectroscopy, thermo gravimetric analysis (TGA), and X-ray powder diffraction analysis (XRD). The analysis showed that KC–Fe was successfully synthesized and exhibited good thermal properties with a 49% char residue at 800 °C. The enhanced flame retardancy and smoke suppression performance of waterborne epoxy were evaluated using a limiting oxygen index (LOI) and UL-94. Moreover, the flame retardancy of waterborne epoxy coated on a steel plate was also investigated using cone calorimetry. The results showed that the flame-retardant waterborne epoxy blend exhibited the best flame retardancy when the mass ratio of APP and KC–Fe was 2:1. The total heat release (THR) and total smoke production (TSP) was decreased by 44% and 45%, respectively, which indicated good fire safety performance and smoke suppression properties. Analysis of the residual char using FTIR, SEM, and elemental analysis (EDS) indicated that the action of KC–Fe was promoted by the presence of APP. The formation of a dense thermal stable char layer from an intumescent coating was essential to protect the underlying materials.