South Korea’s petrochemical industry, the fourth-largest globally, is uniquely positioned between China’s rapid growth and the structural shifts in Europe and Japan. Once export-driven, it now faces profitability challenges due to global oversupply and China’s rise. As global demand shifts toward cleaner chemical products—spurred by initiatives like the Plastics Treaty and CBAM—South Korea stands at a critical juncture where it can turn crisis into opportunity by leading the decarbonization. Its transition could catalyze broader changes across East Asia’s petrochemical supply chain.