South Korea Petrochemical Industry: Key Position and Future Prospects

The South Korea and petrochemical industry occupies an important position in the national economy, providing essential materials for daily life and many key industries. The industry is capital and technology intensive and highly dependent on economies of scale. In recent years, despite challenges such as rising global trade protectionism and slowing growth in China, the South Korea petrochemical industry has maintained outstanding performance.

Industry status and contribution

of the petrochemical industry contributes significantly to the South Korea manufacturing sector, accounting for 6.1 per cent of total production, 4.4 per cent of added value and 8.2 per cent of exports. From clothing to electronics, petrochemical products are everywhere, especially high-performance plastics are increasingly used in the automotive industry and the electronic and electrical industries. In addition, the petrochemical industry is also known as "industrial rice", which provides essential materials for major industries including automobiles and electronics.

Market trends and challenges

Despite growing global demand, the South Korea petrochemical industry faces multiple challenges. Rising oil prices, the U. S.-China trade dispute and increased supply from competitors have led to a slowdown in the industry. At the same time, China's increased self-sufficiency and slower growth, as a major export market for South Korea, have further exacerbated competitive pressures. However, the South Korea petrochemical industry has continuously improved its production capacity through improved process efficiency and facility expansion, and has become the fourth largest production capacity country in the world.

Future plans and investment strategies

for In order to maintain competitiveness in the global market, South Korea petrochemical companies actively develop investment strategies. They plan to meet the challenges of scale and connectivity by having maximum production capacity. It is predicted that domestic ethylene production capacity will increase from 9.255 million tons in 2018 to 14.03 million tons in 2023. At the same time, the petrochemical industry has announced large-scale investments worth 14.5 trillion billion won and plans to create more than 1600 jobs in 2023. To address the problem of inadequate investment and infrastructure, the government and the private sector have set up a joint agency, the "Petrochemical Investment TF", to assist in resolving difficulties in the investment process and check the status of implementation.

Industry Prospects and Outlook

of looking ahead, the South Korea petrochemical industry will continue to play a key role in the national economy. Although global supply growth is expected to outpace demand, resulting in lower operating rates and profitability, South Korea petrochemical companies will remain competitive through scale and synergies. At the same time, with the rise of the fourth industrial revolution, the petrochemical industry will also usher in new development opportunities, providing material support for high-tech industries such as drones and 3D printers.