From its impressive production of over 11 million tons of ethylene capacity—a global powerhouse—to billions in exports fueling its economy, South Korea's petrochemical industry is a fascinating engine of growth, innovation, and environmental transition.
Key Takeaways
- South Korea's ethylene production capacity stood at 11.2 million metric tons per annum (MTPA) as of 2023
- In 2022, total petrochemical production in South Korea reached 28.4 million tons, marking a 3.2% increase from 2021
- Propylene output in South Korea was 7.8 million tons in 2022
- South Korea's petrochemical industry ethylene capacity ranked 4th globally in 2023 at 11.2 MTPA
- LG Chem's ethylene cracker capacity at Yeosu: 1.2 MTPA post-expansion 2023
- Lotte Chemical's Daesan plant PX capacity: 1.8 MTPA as of 2023
- Revenue of major petrochemical firms totaled KRW 120 trillion in 2022
- LG Chem's petrochemical segment revenue: KRW 35.2 trillion in 2022
- Lotte Chemical EBITDA: KRW 2.1 trillion in 2022
- Petrochemical imports value: $12.3 billion in 2022
- Ethylene derivatives exports: $18.7 billion in 2022 to China mainly
- Top export destination China share: 45% of petrochem exports 2022
- CO2 emissions from petrochem industry: 45 million tons in 2022
- Energy intensity per ton of ethylene: 12.5 GJ/ton in 2022, improved 5% YoY
- R&D expenditure as % of sales: 3.2% average for majors 2022
South Korea's petrochemical industry maintained strong production and global exports in 2022.
Capacity and Plants
- South Korea's petrochemical industry ethylene capacity ranked 4th globally in 2023 at 11.2 MTPA
- LG Chem's ethylene cracker capacity at Yeosu: 1.2 MTPA post-expansion 2023
- Lotte Chemical's Daesan plant PX capacity: 1.8 MTPA as of 2023
- SK Innovation's Ulsan naphtha cracker capacity: 2.1 MTPA ethylene
- Hanwha TotalEnergies' Yeochun complex ethylene capacity: 1.3 MTPA
- Total PE capacity in South Korea: 5.8 MTPA in 2023
- PP capacity nationwide: 4.2 MTPA as of end-2022
- PVC capacity total: 1.75 MTPA in South Korea 2023
- PTA capacity reached 9.5 MTPA in 2022
- Number of naphtha cracking units operational: 7 major units in 2023
- Yeosu Industrial Complex hosts 25% of national petrochem capacity
- Ulsan Petrochemical Complex capacity utilization: 93% average 2022
- Planned ethylene capacity addition: 0.5 MTPA by 2025 at Seosan
- Total aromatics capacity: 12.4 MTPA benzene equivalent 2023
- EG capacity in South Korea: 2.8 MTPA as of 2023
- Styrene capacity: 3.1 MTPA nationwide 2022
- ABS capacity total: 1.5 MTPA in 2023
- Synthetic rubber capacity: 2.0 MTPA 2023
- Number of petrochemical plants: 150+ major facilities in 2023
- Daesan complex total capacity: 4.2 MTPA olefins and derivatives 2023
- GS Caltex's Yeosu cracker capacity: 1.1 MTPA ethylene
- Hyosung's Gunsan PTA plant capacity: 2.5 MTPA
- Total methanol capacity: 1.2 MTPA domestic production 2023
- Petrochem cluster in Saemangeum: planned 3 MTPA by 2030
- Utilization rate for crackers averaged 88% in 2023 H1
- LG Chem's total domestic petrochem capacity: 6.5 MTPA 2023
Capacity and Plants Interpretation
While proudly holding the world's fourth-largest ethylene capacity, South Korea's petrochemical giants are strategically expanding their industrial fortresses from Yeosu to Ulsan, ensuring every cracker and complex operates near full throttle to feed a vast and intricate web of derivative production.
Environmental and R&D
- CO2 emissions from petrochem industry: 45 million tons in 2022
- Energy intensity per ton of ethylene: 12.5 GJ/ton in 2022, improved 5% YoY
- R&D expenditure as % of sales: 3.2% average for majors 2022
- Bio-based petrochemical projects: 5 pilots launched 2023
- Recycling rate of petrochemical plastics: 28% in 2022
- Patents filed in petrochem: 1,200 by Korean firms globally 2022
- Carbon capture utilization (CCU) capacity planned: 1 MTPA by 2025
- Water usage per ton product: 15 m3/ton average 2022
- Green hydrogen integration pilots: 3 plants in 2023
- NOx emissions reduced 12% YoY to 50,000 tons 2022
- Investment in green petrochem: KRW 2 trillion 2022-2025 plan
- Number of ESG reports published: 15 by major firms 2022
- Plastic waste recycled: 450,000 tons from petrochem 2022
- New catalyst R&D projects: 20 funded by gov 2023
- SOx emissions: 25,000 tons total 2022 down 8%
- Renewable energy use in plants: 5% of total 2022
- AI-optimized processes R&D: 10 projects 2023
- Hazardous waste generated: 1.2 million tons managed 2022
- Net-zero roadmap adopted by 8 majors by 2050
- Bio-PET development capacity: 50,000 tons pilot 2023
- VOC emissions control rate: 95% compliance 2022
- Collaborations with global R&D: 25 partnerships 2022
Environmental and R&D Interpretation
While South Korea's petrochemical industry pumps out a hefty 45 million tons of CO2, the 5% yearly improvement in energy efficiency, the scramble for patents and green hydrogen pilots, and even the 28% plastic recycling rate suggest it's not just blowing hot air but is seriously, if awkwardly, trying to pivot from a fossil-fueled giant into a more circular contortionist.
Financial Metrics
- Revenue of major petrochemical firms totaled KRW 120 trillion in 2022
- LG Chem's petrochemical segment revenue: KRW 35.2 trillion in 2022
- Lotte Chemical EBITDA: KRW 2.1 trillion in 2022
- SK Innovation chemicals division profit: KRW 1.8 trillion 2022
- Hanwha Solutions petrochemical revenue: KRW 15.4 trillion 2022
- Industry average ROE: 8.2% in 2022 for top 10 firms
- Total investment in petrochem: KRW 10 trillion in 2022 capex
- Petrochemical export contribution to GDP: 2.1% in 2022
- Average debt-to-equity ratio: 1.2 for major players 2022
- Lotte Chemical net loss narrowed to KRW 500 billion in 2022 from 1.5T prior
- GS Caltex refining-petrochem profit margin: 12% in 2022
- Hyosung Chemicals sales growth: 15% YoY to KRW 8.9 trillion 2022
- Kumho Petrochemical EBITDA margin: 18.5% in 2022
- Total R&D spend by industry: KRW 1.2 trillion in 2022
- Petrochem firms' market cap total: USD 50 billion end-2022
- Average operating margin: 7.8% for basic petrochemicals 2022
- Dividend payout ratio average: 25% for top firms 2022
- Foreign investment in petrochem stocks: 35% ownership 2022
- Bond issuance by majors: KRW 5 trillion in 2022
- Cash reserves total: KRW 20 trillion industry-wide 2022
- Cost of naphtha feedstock: KRW 900/kg average 2022
- Profit per ton of ethylene: USD 250 in 2022 average
- Tax contributions: KRW 3.5 trillion from petrochem in 2022
- Employment cost: KRW 15 trillion wages 2022 for 50,000 workers
- Asset turnover ratio: 0.85 for industry average 2022
Financial Metrics Interpretation
South Korea's petrochemical giants, while generating mountainous revenues of KRW 120 trillion, are essentially running a high-stakes, capital-intensive marathon where even the top players, like LG Chem and Hanwha Solutions, must sweat out thin average margins and hefty investments just to stay in place and pay their sizable workforce.
Production and Output
- South Korea's ethylene production capacity stood at 11.2 million metric tons per annum (MTPA) as of 2023
- In 2022, total petrochemical production in South Korea reached 28.4 million tons, marking a 3.2% increase from 2021
- Propylene output in South Korea was 7.8 million tons in 2022
- South Korea produced 4.1 million tons of polyethylene (PE) in 2022
- Polypropylene (PP) production volume hit 3.9 million tons in South Korea during 2022
- Aromatics production, including benzene, toluene, and xylene (BTX), totaled 9.2 million tons in 2022
- Ethylene glycol (EG) production in South Korea reached 2.3 million tons in 2022
- Styrene monomer production was 2.8 million tons in 2022
- ABS resin production amounted to 1.2 million tons in South Korea in 2022
- PVC production in South Korea was 1.1 million tons in 2022
- Methanol production capacity utilization rate was 85% in 2022 for South Korean plants
- Butadiene production reached 1.4 million tons in 2022
- South Korea's paraxylene (PX) production was 5.6 million tons in 2022
- Polystyrene (PS) output totaled 0.9 million tons in 2022
- Acrylonitrile (AN) production in South Korea hit 0.4 million tons in 2022
- Ethylene production actual output was 10.1 million tons in 2023 Q1-Q3
- PE production increased by 5% YoY to 4.3 million tons in H1 2023
- PP capacity utilization averaged 92% in 2022
- Total synthetic rubber production was 1.5 million tons in 2022
- VCM production reached 1.0 million tons in 2022
- Benzene production output was 3.2 million tons in 2022
- Toluene output stood at 2.1 million tons in 2022
- Mixed xylene production was 3.9 million tons in 2022
- PTA production volume hit 7.8 million tons in 2022
- PET resin production was 2.5 million tons in 2022
- Phenol production reached 0.7 million tons in 2022
- Acetone output totaled 0.4 million tons in 2022
- South Korea's total petrochemical exports value was $25.6 billion in 2022
- Ethylene output per capita in South Korea was approximately 200 kg in 2022
- LG Chem's Ulsan plant produced 2.1 million tons of ethylene equivalents in 2022
- South Korea's naphtha cracking capacity produced 85% of ethylene in 2022
- Yeochun Naphtha Cracking Center (YNCC) output was 3.2 million tons of major olefins in 2022
- Daesan Petrochemical Complex ethylene production: 1.8 MTPA actual output 2022
- SK Energy's Ulsan refinery integrated petrochem output: 4.5 million tons in 2022
- Total refining-petrochem integration yield was 45% for olefins in 2022
- South Korea's petrochemical production index rose 4.1% in 2022 vs 2021
- Monthly ethylene production averaged 850,000 tons in Dec 2022
Production and Output Interpretation
South Korea's petrochemical industry is not just running, it's practically sprinting at a world-class pace, producing a dizzying array of plastics and chemicals at staggering volumes to power modern life, all while dancing on the razor's edge of global market volatility.
Trade Data
- Petrochemical imports value: $12.3 billion in 2022
- Ethylene derivatives exports: $18.7 billion in 2022 to China mainly
- Top export destination China share: 45% of petrochem exports 2022
- PE exports volume: 2.9 million tons in 2022
- PP exports: 2.1 million tons valued at $3.2 billion 2022
- Trade surplus in petrochemicals: $13.3 billion in 2022
- Naphtha imports: 22.5 million tons in 2022
- PTA exports: 4.2 million tons to Asia 2022
- Synthetic rubber exports: $2.5 billion in 2022
- Exports to US: 12% share or $3.1 billion 2022
- Vietnam imports from SK petrochem: $1.8 billion 2022
- EU petrochemical imports from SK: $2.2 billion 2022
- Monthly export value peak: $2.5 billion in Oct 2022
- India as growing market: $1.0 billion exports 2022 up 20%
- Japan petrochemical trade balance: SK surplus $800 million 2022
- ASEAN region exports: 30% share $7.7 billion 2022
- Global market share of SK PE exports: 8% in 2022
- Crude oil imports for feedstock: 800 million barrels equivalent 2022
- Re-exports of petrochemical products: 15% of total 2022
- Trade growth rate exports: 10.2% YoY 2022
- Imports of advanced polymers: $1.5 billion 2022
- Container shipments of petrochem: 1.2 million TEU 2022
- FTAs impact: 25% tariff reduction on exports via 15 FTAs 2022
Trade Data Interpretation
South Korea acts as the world's high-stakes chemical middleman, refining vast imports of crude and naphtha into a torrent of plastics and polymers, cleverly turning a massive trade surplus by selling a staggering 45% of it to a single, voracious customer next door.
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