The global petrochemical industry is facing structural stagnation due to oversupply, threatening the regional economies of Korea’s three main complexes (Yeosu, Daesan, Ulsan). The Korea petrochemical industry needs to shift to a new growth sector, backed by real investment to ease regional stagnation.
The global petrochemical industry is facing structural stagnation due to oversupply, threatening the regional economies of Korea’s three main complexes (Yeosu, Daesan, Ulsan). Current government measures lack effectiveness and fail to account for each site's specific challenges and capabilities. The Korea petrochemical industry needs to shift to a new growth sector, backed by real investment to ease regional stagnation.
-Yeosu: Technology testbed for transition to clean chemical industry
-Daesan: Commercialization of alternative feedstocks and introduction of low-carbon infrastructure
-Ulsan: Leadership in clean hydrogen and plastics recycling businesses
Key transition technologies’ economic analysis shows heat pumps and methane pyrolysis lower long-term costs and eliminate greenhouse gases. Electric heating raises costs with renewable energy use but cuts carbon emissions by over 90%. About 2.9 trillion KRW short-term investment, renewable infrastructure expansion, and financial support are needed for successful transition and commercialization across the three petrochemical complexes.
*This issue paper is a follow-up to <A Net Zero Roadmap for South Korea’s Petrochemical Industry>, published by NEXT group in November 2024.
