Omar Khalid
South Korea's plastic industry is one of the largest in the world, with a production capacity of 19.92 million tonnes of primary plastic polymers annually. The country's plastic industry has grown over time in scale and value, with the number of plastics manufacturing companies increasing steadily in recent years. South Korea has a high domestic demand for plastics, particularly polypropylene, and is a major exporter of plastic products, with the United States and China as its main export destinations. While the industry faces environmental concerns, companies like GS Caltex are working on methods to reuse oil and raw materials from decomposing plastic waste.
| Characteristics | Values |
|---|---|
| Plastic production capacity | 19.92 million tonnes |
| Annual demand | USD60.1 billion |
| Annual production value | USD56.2 billion |
| Share of global production | 7.1% of Asia Pacific total |
| Petrochemical industry rank | One of the largest in the world |
| Major export destinations | United States and China |
| Major plastic manufacturers | LG Chem, GS Caltex, CJ CheilJedang |
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What You'll Learn
- South Korea's plastic industry is one of the world's largest petrochemical industries
- Plastic manufacturers are developing new processes to reduce and reuse plastic waste
- South Korea's plastic industry has grown in scale and value over time
- The country's high consumption of plastic has raised environmental concerns
- South Korea's plastic industry exports are decreasing
South Korea's plastic industry is one of the world's largest petrochemical industries
South Korea's plastic industry has grown significantly over time, with an increasing number of plastics manufacturing companies. The country has a high domestic demand for plastics, particularly polypropylene, used in various products like straws, coat hangers, and light food containers. Other commonly produced plastic materials include high- and low-density polyethylene, utilised for shampoo bottles and plastic films. The high density of convenience stores and the prevalent use of plastic packaging in food delivery services have significantly contributed to the large volume of plastic waste in South Korean households. Food packaging accounts for over 70% of household plastic waste.
South Korea's ability to process raw petroleum materials into other petrochemicals has been pivotal in the development of its plastic industry. The country imports naphtha and liquefied petroleum gas, primarily from the United Arab Emirates and the United States, to produce plastic products. These raw materials are further processed into synthetic resins and polymers, contributing to South Korea's high-density polyethylene production capacity, for which it ranks high globally.
The plastic industry in South Korea is dominated by domestic suppliers, with imports accounting for only 13.0% of the total market size in 2023. B2B spending represents a significant portion of the market demand, constituting 95.5% of total demand in the same year. Toray Advanced Materials Korea Inc. is the largest company in the industry, contributing 1.1% of the total production value in 2023. The industry is highly fragmented, with the top five companies generating only 4.8% of total production value.
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Plastic manufacturers are developing new processes to reduce and reuse plastic waste
South Korea is a significant contributor to the global plastic crisis, with a production capacity of 19.92 million tonnes of primary plastic polymers annually, according to Greenpeace East Asia. This contributes to carbon emissions and plastic pollution, impacting the climate crisis.
Plastic waste has become a critical challenge worldwide, and manufacturers are increasingly aware of the need to develop new processes to reduce and reuse plastic waste. The plastic lifecycle, from production to disposal, has detrimental effects on the environment and human health. Traditional waste management practices, such as open burning, landfilling, and incineration, contribute to these issues and are economically detrimental.
To address these concerns, plastic manufacturers are exploring innovative solutions:
- Chemical Recycling: Chemically recyclable polymers are being designed to manage plastic waste at the end of its usable life. While mechanical reprocessing degrades polymer quality, chemical recycling, through depolymerization, can recover precursor building blocks. However, chemically recyclable polymers have their limitations, including poor performance and residual impurities.
- Emerging Techniques: New techniques like microwave-assisted conversion, plasma-assisted conversion, supercritical water conversion, and photo reforming are being explored to obtain high-value products from plastic waste. These methods aim to reduce environmental impacts and provide economic benefits.
- Product Redesign: Companies are experimenting with product designs that reduce waste and promote reusability or compostability. This shift is driven by consumer demands and the need to minimize the environmental footprint of single-use plastics.
- Policy and Government Frameworks: Policies, such as the forthcoming global plastics treaty, can incentivize private industries to reduce plastic waste. Bottle bill laws, for example, encourage retailers to add a fee to individual bottles, which consumers can recoup upon recycling, promoting corporate responsibility and consumer recycling habits.
- Circular Economy: Emphasizing reuse, repair, remanufacture, and refurbishment, the circular economy model aims to maximize renewable and non-harmful resources. This approach includes banning non-degradable and non-recyclable plastics, encouraging bio-based materials, and promoting resource efficiency in manufacturing.
- Recycling Technologies: Marine debris recycling methods, such as the weathering method, characterization method, and processing method, are being developed to address plastic pollution in aquatic ecosystems. Energy recovery techniques, like incineration, can also extract energy from waste.
These initiatives demonstrate the plastic manufacturing industry's efforts to address the global plastic waste crisis. By reducing, reusing, and recycling plastic waste, manufacturers are striving for more sustainable practices and contributing to environmental conservation.
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South Korea's plastic industry has grown in scale and value over time
South Korea's petrochemical industry is a significant contributor to the global plastics crisis and carbon emissions. The country's plastic manufacturers have begun exploring new processes to reduce and reuse waste materials, with companies like GS Caltex working on methods to reuse oil and raw materials from decomposing plastic waste. South Korea has a high domestic demand for plastics, particularly polypropylene, used in products like straws, coat hangers, and light food containers. Other commonly produced plastic materials include high- and low-density polyethylene for shampoo bottles and plastic films.
The high density of convenience stores and the prevalent use of plastic packaging in food delivery services have significantly contributed to the large share of plastic waste in South Korean households. Food packaging accounts for over 70% of household plastic waste, with CJ CheilJedang being the firm most associated with plastic waste. The plastic industry in South Korea is dominated by domestic suppliers, with imports accounting for only 13.0% of the total market size in 2023. B2B spending represents the majority of market demand, constituting 95.5% of total demand in 2023.
South Korea's plastic industry is valued at USD56.2 billion, constituting 7.1% of the Asia Pacific total in 2023. The industry has seen increased costs, primarily driven by rising B2B costs, and decreased profitability, standing at 8.9% of production value in 2023. The top five companies in the industry generate 4.8% of the total production value, with Toray Advanced Materials Korea Inc. being the largest company, producing 1.1% of the industry's total output. The industry's exports share decreased in 2023 to 17.2% of total production output.
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The country's high consumption of plastic has raised environmental concerns
South Korea's plastic industry is a significant contributor to the global plastic crisis. The country's annual production capacity of primary plastic polymers is 19.92 million tonnes, which is projected to create 99.93 megatons of carbon dioxide equivalent (CO₂e) emissions. This high level of plastic production and consumption has raised environmental concerns, particularly regarding plastic waste and pollution.
The environmental impact of South Korea's plastic industry is felt both domestically and globally. Domestically, the country is facing issues with plastic waste management. For example, the popularity of K-Pop has led to a surge in plastic usage for album production and packaging, resulting in approximately 1,395 tons of plastic waste in 2020. The South Korean government has started to address this issue by implementing waste-management measures and promoting the effective management of microplastics. However, the environment ministry has not imposed regulations on entertainment companies to reduce their plastic waste, which has led to criticism from environmental advocates.
Microplastics, which are plastic particles smaller than 5 mm in size, have been detected in various environments in South Korea, including soil, water, and food supplies. Research has shown that the mean microplastic concentration in soil samples from 100 sites in South Korea was 700 pieces/kg, with higher concentrations in upland soil than in urban soil. The presence of microplastics in the environment is a concern due to their potential adverse effects on ecosystems and human health. While the specific threats of microplastics to the human body have not been conclusively identified, studies have shown that ultrafine microplastic absorption can result in complex toxicity.
South Korea has taken steps to address the global plastics crisis by hosting the fifth Intergovernmental Negotiating Committee (INC-5) meeting for a Global Plastics Treaty in Busan. This meeting aims to advance a legally binding treaty on plastic pollution, covering all aspects of the plastics life cycle, including emissions, production, waste management, and single-use plastics. South Korea's leadership in hosting this treaty is a positive step towards addressing the environmental concerns associated with the country's high consumption of plastic.
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South Korea's plastic industry exports are decreasing
South Korea's plastic industry is one of the largest in the world, with the country ranking high in production capacity for high-density polyethylene. Plastics are one of South Korea's major exports, with the industry growing in scale and value over time. However, there are indications that South Korea's plastic industry exports are decreasing.
The profitability of the industry decreased to 8.9% of production value in 2023, with exports also decreasing to 17.2% of total production output in the same year. This downward trend in exports is occurring as consumers and manufacturers increasingly prioritize sustainability.
South Korea's plastic industry is dominated by domestic suppliers, with imports accounting for only 13.0% of the total market in 2023. The high density of convenience stores and the common use of plastic packaging in food delivery services have significantly contributed to the large share of plastic waste in households. Food packaging constituted more than 70% of household plastic waste, with companies like CJ CheilJedang being associated with single-use plastic waste.
As environmental concerns grow, large companies such as GS Caltex are developing methods to reuse oil and raw materials from decomposing plastic waste. While the industry is far from eliminating plastics, it is likely to evolve as sustainability becomes a more pressing goal. South Korea's plastic manufacturers are already exploring new processes to reduce and reuse plastic waste, indicating a potential shift in the industry's focus.
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Frequently asked questions
South Korea's plastic industry has grown over time in scale and value, with the number of plastics manufacturing companies increasing steadily over the years. South Korea has the fourth-largest market size for plastic products in the region, with a production value of USD56.2 billion in 2023.
Some of the plastic products manufactured in South Korea include polypropylene, which is used to make straws, coat hangers, and light food containers, as well as high- and low-density polyethylene, used for shampoo bottles and plastic films.
South Korea's plastic industry has a significant environmental impact. The country's high density of convenience stores and common use of plastic packaging in food delivery services contribute to a large share of plastic waste in households. Food packaging alone makes up more than 70% of household plastic waste.
Large companies such as GS Caltex have worked on methods to reuse oil and raw materials from decomposing plastic waste. While a shift away from plastics has not yet occurred, sustainability is becoming a greater aim for consumers and manufacturers, which may drive innovation in the industry.
The major export destinations for plastic items from South Korea are the United States and China.
