PUBLICATION

Chemical Week

AUTHORS

Nathan Allen, Pavlina Pavlova

South Korea Chemicals 2014 IHS CW Release

April 14, 2014

Korea’s economy catapulted spectacularly in the last fifty years; In 1961 the average yearly income per person was just $82, yet today the country boasts the world’s 12th largest economy and GDP per capita stands at $31,900 per person. This meteoric growth was made possible in the beginning thanks to state sponsored nurturing of key industries. The Soviet-esque Heavy and Chemical Industrialization five-year plan initiated by General Park Chung-Hee in 1973 sought to direct as many resources as possible towards boosting international competitiveness in electronics, machinery and, of course, chemicals.

The opening of two major petrochemical complexes at Ulsan and Yeosu was part of the government’s strategy of establishing the country as a major petrochemicals producer. However, it was not until the 1990s that production really took off and South Korea established itself as a net exporter, eventually becoming the world’s fourth largest producer of ethylene in 1995. Today the country has slipped down to fifth place, having been overtaken by Saudi Arabia, but petrochemicals still constitute an important part of the export economy, generating a $22.4 billion trade surplus in 2012.

In parallel, the Koreans have also built up a considerable level of expertise and substantial production volumes in more basic aspects of the specialty chemical field. Now we are seeing a clear effort to promote more research-intensive, high-risk areas such as biotechnology and pharmaceuticals, nanotechnology and, perhaps most interestingly, electronic chemicals. The key challenge will be encouraging foreign investment while also ensuring national interests.

RELATED INTERVIEWS MORE INTERVIEWS

Haldor Topsoe discusses the potential for energy transition in Latin America.
The Mexican Union of Agrochemicals Manufacturers and Formulators (UMFFAAC) describes the main themes impacting its members.
Cristian García of PROCCYT explains the dynamics influencing Mexico’s crop protecting sector.
FMC discusses the rise of sustainable products which have minimal residues on crops.

RECENT PUBLICATIONS

Mongolia Mining 2024 - Digital Interactive

Investors once came to Mongolia for its geology yet stumbled upon its legislative framework. How competitive Mongolia has become today, we will leave our readers to judge, hoping that this report provides them with the resources to make an informed assessment.

MORE PREVIOUSLY PUBLISHED

MACIG

"Namibia offers a compelling value proposition for investors looking to capitalize on the country's vast potential in the mining and energy sectors."

SUBSCRIBE TO OUR NEWSLETTER