A code reading method and a radar system using a short-range millimeter wave (mmWave) radar are provided. The method includes transmitting a mmWave radar signal to a target object from a radar system and receiving a reflection wave signal reflected on the target object, extracting reflection signal strengths for a plurality of line codes constituting the target object from the reflection wave signal, compensating for the reflection signal strengths considering a difference in antenna gain between the plurality of line codes as per an antenna radiation pattern of the radar system, forming a radar image using the compensated reflection signal strengths, and reading a binary code from the radar image.