The Yeosu National Industrial Complex is the very heart of Korea’s petrochemical industry. Since its first groundbreaking in 1967, it grew into a key hub that has led the development of the local economy and national industry. The complex is still playing a central role in the country’s chemical industry, but it is currently transforming itself in the face of the global economic downturn and oversupply.

The Yeosu National Industrial Complex is home to 303 companies on a vast area of approximately 12.5 million square meters. The annual production value reached KRW 84 trillion won as of 2023, with exports reaching USD 3.2 billion. It is home to Korea’s petrochemical leaders such as LG Chem, Lotte Chemical, GS Caltex, Yeochun NCC, Hanwha Solutions, and Kumho Petrochemical, and these large-scale petrochemical companies account for 84% of the total production. The Yeosu National Industrial Complex has played a key role in revitalizing the local economy by creating about 25,000 jobs through companies operating in the complex.

However, the recent global economic slowdown and the oversupply of petrochemical products from China are curbing the growth of the industrial complex. Production has slowed down sharply, resulting in job insecurity and a contraction in domestic demand. To resolve the multi-dimensional crisis, the Yeosu National Industrial Complex is seeking a new breakthrough.

The Yeosu National Industrial Complex is preparing to leap forward through the Smart Green Industrial Complex project. It is innovating itself based on the three pillars of digital innovation, enhanced safety, and low-carbon technology.

To achieve digital innovation, the complex is building a process innovation simulation center and a smart logistics platform and implementing a project for developing high-quality manpower specializing in smart manufacturing. More specifically, the process innovation simulation center supports the optimization of petrochemical processes and helps improve production efficiency. The smart logistics platform is building a system for reducing logistics costs and improving operational efficiency by considering the special logistics structure of the Yeosu National Industrial Complex.

The industrial complex, whose reputation has been tarnished by repeated safety accidents in the past, aims to create a safer working environment by introducing an integrated control center for digital environment and safety and building infrastructure for designing explosion-proof plants and ensuring fire safety.

The efforts to create a low-carbon industrial complex are also noteworthy. The Yeosu National Industrial Complex is working to better fulfill its environmental responsibility by developing technology for using carbon dioxide and establishing a smart energy platform for upgrading the energy management system.

Local governments are also working to restructure their businesses by conducting a project for building a clean hydrogen pipeline network in the Gwangyangman Bay Area and projects specializing in materials, parts and equipment. Recently, the complex was designated as the final demonstration site to conduct the mega project for carbon capture and utilization (CCU). The large-scale project supports the entire technology cycle from carbon dioxide supply to its use in products, with the aim of achieving the country’s 2030 Nationally Determined Contributions (NDCs) and finding new growth engines for the future. By demonstrating the viability of a process that converts carbon dioxide in petrochemical processes into basic chemical materials (olefins, naphtha, etc.) and polyols, the mega project is expected to further strengthen the industrial complex's competitiveness and help achieve carbon neutrality.

Recently, Yeosu City proposed to the government to designate the Yeosu National Industrial Complex as an area to preemptively respond to industrial crises in order to overcome the ongoing crisis in the petrochemical industry and strengthen its global competitiveness. Based on the proposal, practical measures, such as lifting excessive regulations and cutting electricity rates for industrial use, are being discussed.

Major petrochemical companies are also seeking to explore new global markets. They expanded their presence in the international market by increasing exports to European and Asian markets, and also strengthened cooperation with global partners. In addition, they are working to increase overseas sales by introducing more high-value added product groups in the petrochemical industry. As it prepares for a sustainable future by conducting various projects, the Yeosu National Industrial Complex will find new ways to turn the crisis into an opportunity, just as it has been the solid foundation of the country’s petrochemical industry.