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5th Largest Chemical Market in the World Close
5th Largest Chemical Market in the World

The scale of the chemical industry is typically calculated by the productive capacity of Ethylene.
Korea ranked 4th in its capacity to produce Ethylene in 2019, with 9,816 tons.
Korea’s specialty chemical materials have posted continuous growth, thanks to steady growth of the ICT industry (semiconductors, OLED, secondary batteries, etc.).
Five Korean chemical companies are listed on the ICIS Top 100 Chemical Companies (ICIS, September 2020).
Demand for various domestic industries involved in secondary batteries, automobile, and OLED, etc., customized production and development, and massive investment are expected to further increase the growth of specialty chemical materials.
2019 Productive Capacity of Ethylene 세계 174.4(단위: 백만톤/년)

US 37.4(21.4%)

China 26.9(15.4%)

Saudi Arabia 17.7(10.1%)

Korea 9.8(5.6%)

Iran 7.3(4.2%)

India 7.5(4.3%)

Japan 6.5(3.7%)
Korean Companies Listed on the ICIS Top 100

No. 8 LG Chem

No. 16 SK Innovation

No. 26 Lotte Chemical

No. 56 GS Caltex Corporation

No. 82 Hanhwa Solutions
※ Source: Korea Petrochemical Industry Association

Continuous Growth Expected Based on Sound Front Industries and Infrastructure Open

Continuous Growth Expected Based on Sound Front Industries and Infrastructure

Korea’s chemical industry has been growing based on the country’s major front industries, such as automobiles, textiles, construction, and plastics,
which establish the country as a manufacturing powerhouse. Exports of the Korean chemical industry focused on East Asia, including China, recorded 11.79 million tons in 2019.

A total of 348 education and training institutions that have chemical related departments, such as KAIST and POSTECH, foster a workforce of over 30,000 core talent every year.
In order to strengthen infrastructure for materials, parts, and equipment, an increase in national research infrastructure from 18 to 51 pieces is in the planning stages.

"Overview of Major Front Industries in Korea"

Overview of Major Front Industries in Korea Major industries, global status, and major companies
Major industries	global status, and major companies
Automobile	7th largest automobile manufacturer in the world (3.95 million, 2019) 4th in sales of electric vehicles and 1st in hydrogen vehicles in the world recorded by Hyundai Motor Group; Stable and increasing demand for specialty chemical materials to lighten vehicles
System Semiconductors	Samsung Electronics plans to invest USD 114.3 billion to become the leading system semiconductor company by 2030 Complex structure and precision design of system semiconductors increased demand for specialty chemical materials
Display	Largest market share in the global display market (2019) Exports of OLED panels have shown an annual average growth of 35.3% since 2007 and recorded USD 10.25 billion in 2019, accounting for the half of overall exports of display products.
Secondary Batteries	LG Chem ranked 1st (2020) and plans to supply NCMA batteries to GM. Samsung SDI produces NCA batteries with high nickel content. SK Innovation plans to develop high nickel batteries and supply Ford in 2023.

※ Source: Korea Petrochemical Industry Association, Korea International Trade Association ※ Footnote: Production (left) / Domestic (left) / Export (right) / Import (right)

e-Nation Indicator Shortcuts

More Foreign Companies Entering Korea in Response to Huge Demand for Front Industries Open

More Foreign Companies Entering Korea in Response to Huge Demand for Front Industries

Many global chemical companies located in Korea supply products with high added-value to respond to demand from large-scale front industries (semiconductors, secondary batteries, electric vehicles).
In the case of FDI, batteries are receiving the largest investment in the electric equipment industry.

Companies from many countries, including Japan, Germany, Switzerland, and China, have entered the Korean market, and are involved in a variety of areas, from functional coating and films and secondary batteries, to engineering plastics.

"Major Foreign Companies Located in Korea"

Major Foreign Companies Located in Korea Origin, Name of parent company, Location, Primary items
Origin	Name of parent company	Location	Primary items
Switzerland	Oerlikon balzers	Pyeongtaek Gyeonggi-do	PVD, PACVD, Base coating, Coating equipment
Japan	Lintec	Pyeongtaek Gyeonggi-do	Adhesive and bonding films, Films for semiconductors
Japan	Toray	Gumi Gyeongsangbuk-do, Gunsan Jeollabuk-do	Battery separator films for secondary batteries
China	GEM	Pohang Gyeongsangbuk-do	Lithium secondary battery cathode material precursor
Germany	BASF	Gimcheon Gyeongsangbuk-do	POM(Polyoxymethylene)

Promotion of the Materials, Parts, and Equipment Industries Open

Promotion of the Materials, Parts, and Equipment Industries

The Korean government has strong willingness to foster the materials, parts, and equipment industries.
To achieve this goal, the Materials, Parts, and Equipment Basic Plan (October 14, 2020), the Implementation Plan for the Materials, Parts, and Equipment Industries (January 22, 2020),
and the R&D Investment and Innovation Strategies for Materials, Parts, and Equipment (August 27, 2019), etc. have been established.

The government has set up plans for incentives to attract advanced industries as well as for an investment fund
worth USD 500 million for materials, parts, and equipment.
Establish Regional Fine Chemicals Clusters Open
Establish Regional Fine Chemicals Clusters

Fine chemicals clusters can be divided into the metropolitan, Yeongnam, and Honam areas.
Secondary battery factories, in particular, are located across the country.

"Main Peculiarities per Region"
- Metropolitan
  
  Chemical research institutes study new high-efficient composite materials.
  
  Fine chemical mini clusters and smart industrial complexes for SMEs in Banwol-Sihwa Industrial Complex in Gyeonggi-do
- Yeongnam
  
  Many chemical research institutes in the National Petrochemical Industrial Complex in Ulsan
  
  New smart chemical support center in Haknam Fine Chemicals Industrial Complex in Onsan
- Honam
  
  Remodel the Fine Chemicals Material Cluster in Gwangyang Bay Area near the National Petrochemical Industrial Complex in Yeosu to foster low-carbon, intelligent materials and parts industrial complex
"Secondary Battery Factories"
- Hwaseong
  
  Foosung: Secondary battery electrolytes
- Cheongju
  
  Cosmo AM&T : Cathode materials
- Cheongju
  
  EcoPro BM : Cathode materials
  
  E&D : Cathode materials
  
  W-Scope : Separators
  
  LG Chem : Secondary batteries
  
  SK Innovatio: Separators
- Cheonan
  
  Umicore : Cathode materials
- Gongju
  
  Soulbrain : Electrolytes
- Asan
  
  Teijin Lielsort : Separators
- Daejeon
  
  Leechem : Electrolyte materials
- Jeonju
  
  Aekyung Petrochemical : Anode materials
- Iksan
  
  Iljin Materials : Anode materials copper foil
- Jeongeup
  
  KCFT: Anode materials copper foil
- Gumi
  
  Toray BSF : Separators
  
  Power Carbon Technology : Anode materials
  
  LG Chem : Cathode materials
- Pohang
  
  EcoPro GEM : Cathode materials
  
  EcoPro GEM : Cathode materials
- Yeosu
  
  JCEL : Electrolyte
- Ulsan
  
  STM: Cathode materials
  
  ENF Technology : Separators
  
  Solvay Korea : Additives
  
  Samsung SDI : Secondary batteries
- Daegu
  
  LANDF : Cathode materials
※ Source: Korea Institute for Industrial Economics and Trade

Invest KOREA

Chemicals/Materials PM

Park Bong Kee Key Industries Promotion Team

T.+82-2-3460-7729

Recommendation on Locations

BEST1

[Chungcheongbuk-do Chungju City]

Manjeong General Industrial Complex

Designated area(m2) : 50,401
Management : Chungcheongbuk-do Chungju City
Nearby Railway : Dalcheon Station (5km)
Nearby Airport : Cheongju International Airport (51km)

BEST2

[Ulsan Metropolitan City Nam-gu]

Ulsan Techno General Industrial Complex(Ulsan Free Economic Zone)

Designated area(m2) : 1,286,977
Management : Ulsan Metropolitan City
Nearby Railway : Taehwagang Station (9km)
Nearby Airport : Ulsan Airport (15km)

BEST3

[Jeollabuk-do Gunsan City]

Imphi Agricultural Industrial Complex

Designated area(m2) : 239,156
Management : Jeollabuk-do Gunsan City
Nearby Railway : Daeya Station (7km)
Nearby Airport : Gunsan Airport (31km)

BEST4

[Chungcheongnam-do Yesan County]

Yesan New Material General Industrial Complex

Designated area(m2) : 483,670
Management : Chungcheongnam-do Yesan County
Nearby Railway : Sillyewon Station (22km)
Nearby Airport : Cheongju International Airport (87km)

BEST5

[Busan Metropolitan City Gijang County]

Busan New Material General Industrial Complex

Designated area(m2) : 255,229
Management : Busan Economic Promotion Agency
Nearby Railway : Busan Station (47km)
Nearby Airport : Gimhae International Airport (48km)

BEST6

[Jeollanam-do Mokpo City]

Ceramic General Industrial Complex

Designated area(m2) : 116,361
Management : Jeollanam-do Mokpo City
Nearby Railway : Mokpo Station (5km)
Nearby Airport : Muan International Airport (36km)