Korea’s chemical industry has shown no signs of slowing down, as electronics that use chemical products continue to grow. As such, Korea quickly became the fifth largest market in the global chemical industry, ranking higher than countries like India and France. Local companies in Korea are also exerting their presence in the global market. In 2015, four Korean companies were ranked among the world’s top 50 chemical companies, including LG Chem, Lotte Chemical, SK Innovation and Hanhwa Chemical.
The total production of the chemical
industry amounted to KRW 155.51 tril-
lion (USD 141.46 billion) in 2014 and
during the same period, the annual aver-
age export growth rate of petrochemicals
reached 12.2 percent. Korea is also show-
ing its strength in specialized chemicals.
For example, SK Innovation is the second
largest company in the global wet-type
separation membrane market, which is a
key material used in manufacturing
There are various factors that contribute to the nation’s competitiveness. For one, highly educated human resources have played a pivotal role in securing the country’s foothold in the market. In addition, Korea has a solid R&D foundation for high-tech chemical materials, as it does not hesitate to invest in research clusters that provide a base for further development. On that note, the Sepoong General Industrial Complex demonstrates Korea’s dedication to becoming a leader in fine chemicals.
I-Sepoong General Industrial Complex
The Sepoong General Industrial Complex is located in the city of Gwangyang in Jeolla-do. The complex is under construction within the Gwangywang Bay Area Free Economic Zone (GFEZ) and it is estimated to be completed by 2020. The complex, worth about KRW 545.8 billion (USD 502.14 million), is an enormous project that spans across 2.4 square meters. When completed, the complex will host numerous companies of various industries. The main targeted industries of this establishment includes functional chemical materials, primary metallic products and electric devices manufacturing.
Those who move in to the Sepoong Industrial Complex are provided with world-class infrastructure and logistics. To start off, the industrial complex is located near other industrial clusters such as the Pohang Iron and Steel Company (POSCO) in Gwangyang. This will allow businesses to cooperate and exchange materials and knowledge at a fast pace. Furthermore, the complex is 10 minutes away from Gwangyang International Port and 15 minutes away from Yeosu Airport. Well paved highways and railroads will connect the tenant companies to the capital area and other parts of the peninsula.
Recently, the Sepoong complex has been declared as a foreign investment zone. By injecting KRW 24.6 billion (USD 22.63 million), the complex will provide space for foreign companies at a very affordable price. The zone covers 82,641 square meters of land within the complex and those who decide to move in to the area will enjoy tax benefits. All of the compa- nies in the complex will be able to take advantage of the 75 percent reduction of both acquisition tax and property tax. For example, those who invest over USD 2 million in R&D will be provided with tax benefits such as a corporate income tax exemption for the next five years.
Ultimately, the Sepoong General Industrial Complex aims to welcome industries that will eventually foster new growth engines and accelerate development in Korea. The cluster not only aims to attract foreign investment but seeks to cooperate and collaborate with foreign companies in order to develop together. For those related to the fine chemicals industry, Sepoong General Industrial Complex may be the perfect start of your journey in Korea.