Korea’s fine chemical industry
is among the world’s largest
and four Korean companies—
LG Chem, Lotte Chemical,
SK Innovation and Hanhwa Chemical—
ranked among the world’s top 50 chemical
companies. And thanks to the country’s
optimum investment environment in
this field, the country received the most
foreign direct investment in the chemicals
sector.
The outlook for the industry is especially
promising due to the increased demand
for hightech chemical materials utizilied
in batteries, TV displays and handsets. As
a result, Korea’s electronic companies,
including Samsung Electronics, LG
Electronics and SK Hynix are leading the
global semiconductor and handset markets.
Even amid the global recession, Korean
chemical companies recorded impressive
performance levels. Four areas that are
spurring the growth of this particular
industry are the Ulsan-Mipo National
Industrial Complex, Yeosu National
Industrial Complex, Daesan Refining and
Petrochemical Complex and Jeonbuk
Carbon Valley.
The undisputed powerhouse of the industry, Ulsan is home to 253 machinery companies, 155 petrochemical companies and 151 transportation equipment companies. The seventh largest metropolitan city in Korea is part of the Southeast Coastal Industrial Belt, along with Busan and Pohang. It is also home to the largest automobile assembly plant in the world and the second-largest oil refinery in the world. The city is connected by the Gyeongbu Expressway, Korea's high speed rail system (KTX) and the Ulsan Airport. The Ulsan-Mipo National Industrial Complex was established in order to
foster large-scale oil refineries, as
well as the petrochemical, automobile and
shipbuilding industries.
Located in the southern coast of South
Jeolla Province, Yeosu is a port city with
a population of 297,000. Although reputed
for its tourism industry, Yeosu is also
transforming into a hub for the petrochemical
industry, thanks to the development
of the Gwangyang National
Industrial Complex. The complex was
established to develop a comprehensive
petrochemical industrial region by utilizing
the advantages of its seaside location.
14 piers including the Nakpo Pier (for fertilizer
and raw materials), the Jungheung
Pier (for petrochemical products) and
crude oil pier provide the city with 31
births for 20,000 to 300,000 level vessels
and a cargo stevedoring capacity of
146,660,000 tons/year.
Three of the largest petrochemical companies
in Korea—Hyundai Oilbank, S-Oil
and LG Chem—are all located in Daesan,
South Chungcheong Province. As one of
the major centers of the petroleum refining
industry along with Ulsan and Yeosu,
MOTIE is currently looking to establish
Daesan as an area specializing in
advanced chemicals. The city is accessible
via the Seohaean Expressway and
Gimpo Airport.
Currently, LG Chem is looking to
invest KRW 287 billion (USD 253 million) in the area by 2019 to build more naphtha cracking centers. Hyundai Chemical Co. also invested KRW 1.2 trillion (USD 1 billion) for mass production of mixed xylene. In addition, Samsung Total, Lotte Chemical and KCC also located in Daesan. The complex also allows full exemption from acquisition tax, 50 percent reduction of property tax for five years and financial support for SMEs.
Jeonju, North Jeolla Province has been
at the center for the development of carbon
fiber in Korea. Designated as the center
for carbon development, the city even
hosts the International Carbon Festival.
The Jeonbuk Carbon Valley covers all
stages of carbon fiber development and is
designated as one of the Creative
Economy Innovation Centers in the country.
The Korea Institute of Carbon
Convergence Technology, the only
research institute in Korea specializing in
carbon technology, is located in Jeonju
and aims to become a global research for
the composites industry.
