The chemical industry is an important pillar of the South Korean economy, covering a wide range of processes from raw materials to final products. The chemical industry is divided into several sectors, including petrochemicals, pharmaceuticals, biochemicals, specialty chemicals, plastics, and fertilizers, and is developing to meet the needs of different markets. In particular, steel and plastic materials form the basis of many industries and are sensitive to changes in the global economy. In 2024, the chemicals industry is changing rapidly as it recovers from the COVID-19 pandemic. The change is being fueled by rising international energy prices, supply chain challenges, and the need to tackle climate change. In this environment, chemical companies are adopting innovative technologies and focusing on developing sustainable products. Digital transformation is also an important trend in the chemical industry. Innovative technologies such as artificial intelligence (AI) and the Internet of Things (IoT) are being introduced into chemical production processes to improve productivity and reduce costs. More specifically, data-driven decision-making and smart factories are helping companies stay competitive.

The petrochemical sector is the backbone of the chemical industry, producing a wide range of chemical products using petroleum and natural gas as raw materials. In 2024, demand for petrochemicals is expected to increase globally along with the recovery of industries such as automotive, electronics, and consumer goods. The increase in demand for petrochemicals is particularly strong in Asia, as Asian countries continue to grow in both the manufacturing and consumer goods markets. In addition, recycling of existing products and sustainable production processes are gaining traction, along with the growing demand for eco-friendly products. The petrochemical sector is continuously innovating to increase productivity and reduce costs, improving processes using advanced catalyst technologies, and conducting research and development to increase energy efficiency.

The plastics sector is expected to continue its positive growth in 2024. More specifically, the demand for eco-friendly plastic products is increasing as consumers and companies become more aware of environmental protection. Consumers are growing more concerned about protecting the environment and prefer biodegradable and recyclable plastic products. The trend has highlighted the need for plastics manufacturers to develop sustainable products, and companies are stepping up research and development on sustainable production methods and recycling technologies to respond to consumer needs. Advances in plastic recycling technology are driving growth in the plastics sector. The introduction of new recycling processes and technologies helped increase the recycling rate of plastics, contributing to protecting the environment. For instance, the introduction of chemical recycling processes opened up the possibility of recycling a wide range of plastic materials.

The pharmaceutical industry is expected to continue its rapid growth in 2024. Especially since the COVID-19 pandemic, investment and research and development in the life sciences and pharmaceuticals sector have been on the rise. Based on the experience gained from the development of COVID-19 vaccines, the pharmaceutical sector is focusing on developing new vaccines and treatments. The trend has boosted biochemical research, driving the growth of the pharmaceutical industry. Recently, innovative technologies such as gene editing have been introduced, leading to the development of new treatment methods.

Environmental regulations have a significant impact on the chemical industry. Governments are implementing various regulations to protect the environment, posing new challenges for chemical companies. Chemical companies need to work in diverse ways to comply with environmental regulations, which requires them to develop eco-friendly products and improve production processes.

Fluctuations in raw material prices have a major impact on the chemical industry. Changes in oil and gas prices have a direct impact on the profitability of the petrochemical sector. Chemical companies need to develop strategies to respond to fluctuations in raw material prices, and efficient production processes can reduce raw material costs.

Chemical companies around the world are engaged in a fierce competition. Many countries are investing to boost their chemical industry, which poses a challenge to Korean chemical companies. To compete in the global market, Korean chemical companies must continue investing in research and development, and create new opportunities through international cooperation and networking.

By the end of 2024, the Korean chemical industry is expected to show positive growth. With the recovery of the global economy, the chemical industry is facing various opportunities, especially the growing demand for eco-friendly products and technological innovation. However, sustainable development strategies and technological innovation are essential to respond to challenges such as environmental regulations, fluctuating raw material prices, and global competition. Korea's chemical industry is expected to continue growing in the coming years and stay competitive in the global market.