Korean petrochemical industry will do well in 2014: MOTIE

18 Jan '14

2 min read

South Korea’s petrochemical industry is likely to bounce back and perform well in 2014 owing to an increase in demand from key markets, especially, China, the Ministry of Trade, Industry and Energy (MOTIE) has said, reports The Korea Times.

However, the country’s leading petrochemical companies, including the Korea Kumho Petrochemical Co. (KKPC) and LG Chem would have to overcome new challenges posed by the increasing competition with other global players, the Ministry said.

In a meeting with chief executives and senior executives from the petrochemical industry, Vice Trade Minister Kim Jae-hong said that in general, the South Korean petrochemical industry is forecast to have improved earnings this year compared to previous years, as the market situation looks promising.

The Vice Minister said that the Government will put in more efforts to improve the ongoing Korea-China Free Trade Agreement, so as to bring substantial benefits to the domestic petrochemical industry.

He added that the industry, however, would have to collaborate to address regulatory issues in relation to the Government’s effort to pursue environment-friendly policies.

Meanwhile, the Korea Petrochemical Industry Association (KPIA) has forecast that the demand for ethylene is expected to increase by 3.8 percent this year, while the supply is likely to rise only by 2.8 percent, the report said.

According to KPIA, South Korea’s petrochemical exports are expected to cross the US$ 50 billion-mark for the first time in 2014, due to economic recovery in developed countries and limited growth in outputs.

In 2013, the exports of petrochemical products from South Korea were valued at $48.3 billion.

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