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Attractiveness of the Korean Chemical Industry
With Solid Demands from
High-tech Downstream Industries
Considering that Korea has major high-tech industries such as semiconductor and display, electric and electronics, automotive, secondary battery, and hydrogen, the country's anchor companies leading global trends are important customers for global chemical companies that supply various core materials required for producing finished products.
World's 5th Largest Chemical PowerhouseKorea's chemical industry is a giant industry, ranking fifth globally with sales reaching USD 115 billion and accounting for about 3.0% of the global market.
Produces core and applied materials for
various downstream industries
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Chemical products are Korea’s
third most exported itemKorea's chemical product exports stood at USD 1.3 billion in the 1990s when the products were globally competitive. Since then, the amount has increased more than 40-fold to USD 55.1 billion in 2021. In 2022, foreign direct investment (FDI) in the chemical materials sector amounted to approximately USD 7.9 billion.
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Government Policies
Supporting the Chemical
IndustryIn October 22, the Korean government announced the Materials, Parts and Equipment Industry Policy Direction of the New Government and upgraded the goals from facilitating localization and self-reliance to dominating the global market. The government plans to focus on supporting related areas by expanding the scale of 150 key strategic technologies of the materials, parts and equipment industry in seven major fields* to 200 technologies in 10 fields, which includes space, defense and hydrogen.
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Korea’s Three Major Chemical
Industrial ComplexesCentered around the three major chemical industrial complexes in Ulsan, Yeosu (in Jeonnam), and Daesan (in Chungnam), the Korean chemical industry has achieved economies of scale essential for the development of the large-scale process industry.
Bongkee Park
Key Industries Promotion Team
+82-2-3460-7887
bongkee@kotra.or.kr
Investment Success Stories
T (Japanese company)
Increasingly being used in high-tech industries such as eco-friendly vehicles, secondary batteries, and electrical and electronic devices, engineering plastics are at the center of a fierce global competition aimed at securing technology. Company T leading the global advanced materials market has expanded its manufacturing base in Korea, raising expectations that it will contribute to the formation of a stable value chain with Korean businesses needing engineering plastics and to the development of related technologies. Southeast Asia with its relatively-low investment costs competed with Korea to attract Company T's investment, but the company decided to invest in Korea after the Korean government offered various incentives in Korea and Japan.
S (Saudi company)
Despite global economic uncertainties, Company S announced plans to invest KRW 9 trillion from 2023 to 2026 to produce chemicals such as ethylene and propylene and high-value-added plastics in Ulsan. According to the Ulsan city government, the massive investment is expected to create up to 17,000 jobs during the construction period and revitalize the local construction industry valued at more than KRW 3 trillion. The company plans to commercialize for the first time in the world a TC2C (Thermal Crude to Chemicals) facility, which converts low-value heavy oil products from existing refineries into raw materials used in steam crackers that produce petrochemical raw materials.
Recommendation on Locations
Industrial Complex Information
Manjeong General Industrial Complex
| Initial designation date | 2010.02.05 |
|---|---|
| Designated area(m2) | 50,401 |
| Management | Chungcheongbuk-do Chungju City |
| Nearby Railway | Dalcheon Station |
| Distance from station(km) | 5 |
| Nearby Airport | Cheongju International Airport |
| Distance from airport(km) | 51 |
| Industrial waterSupply capacity(ton/day) | 177(㎥/day) |
| Affiliation local government | Chungcheongbuk-do Chungju City |
| Population | 210,304 |
Industrial Complex Information
Ulsan Techno General Industrial Complex(Ulsan Free Economic Zone)
| Initial designation date | 2013.06.20 |
|---|---|
| Designated area(m2) | 1,286,977 |
| Management | Ulsan Metropolitan City |
| Nearby Railway | Taehwagang Station |
| Distance from station(km) | 9 |
| Nearby Airport | Ulsan Airport |
| Distance from airport(km) | 15 |
| Industrial water Supply capacity(ton/day) | 2614(㎥/day) |
| Affiliation local government | Ulsan Metropolitan City Nam-gu |
| Population | 1,140,310 |
Industrial Complex Information
Imphi Agricultural Industrial Complex
| Initial designation date | 2011.06.20 |
|---|---|
| Designated area(m2) | 239,156 |
| Management | Jeollabuk-do Gunsan City |
| Nearby Railway | Daeya Station |
| Distance from station(km) | 7 |
| Nearby Airport | Gunsan Airport |
| Distance from airport(km) | 31 |
| Industrial water Supply capacity(ton/day) | 426(㎥/day) |
| Affiliation local government | Jeollabuk-do Gunsan City |
| Population | 267,982 |
Industrial Complex Information
Yesan New Material General Industrial Complex
| Initial designation date | 2011.06.16 |
|---|---|
| Designated area(m2) | 483,670 |
| Management | Chungcheongnam-do Yesan Countyu |
| Nearby Railway | Sillyewon Station |
| Distance from station(km) | 22 |
| Nearby Airport | Cheongju International Airport |
| Distance from airport(km) | 87 |
| Industrial water Supply capacity(ton/day) | 788(㎥/day) |
| Affiliation local government | Chungcheongnam-do Yesan County |
| Population | 78,420 |
Industrial Complex Information
Busan New Material General Industrial Complex
| Initial designation date | 2013.01.16 |
|---|---|
| Designated area(m2) | 255,229 |
| Management | Busan Economic Promotion Agency |
| Nearby Railway | Busan Station |
| Distance from station(km) | 47 |
| Nearby Airport | Gimhae International Airport |
| Distance from airport(km) | 48 |
| Industrial water Supply capacity(ton/day) | 0.27(㎥/day) |
| Affiliation local government | Busan Metropolitan City Gijang County |
| Population | 172,288 |
Industrial Complex Information
Ceramic General Industrial Complex
| Initial designation date | 2009.06.05 |
|---|---|
| Designated area(m2) | 116,361 |
| Management | Jeollanam-do Mokpo City |
| Nearby Railway | Mokpo Station |
| Distance from station(km) | 5 |
| Nearby Airport | Muan International Airport |
| Distance from airport(km) | 36 |
| Industrial water Supply capacity(ton/day) | - |
| Affiliation local government | Jeollanam-do Mokpo City |
| Population | 226,875 |