Korea’s Petrochemical Industry to Invest 14.5 Tril. Won over Next Five Years

Leaders of the Korean petrochemical industry have pledged to invest 14.5 trillion won (US$13.06 billion) and create 1,685 jobs over the next five years until 2023.

The chief executive officers from eight petrochemical companies, including LG Chem, GS Ltd., GS Caltex Corp., Hyundai Chemical Co. and S-Oil Corp., announced the investment plan during a conference with Sung Yoon-mo, minister of trade, industry and energy, held at the Yeosu Industrial Complex on Dec. 3.

LG Chem, the country’s top chemical firm, signed an agreement on the same day with South Jeolla Province and the city of Yeosu to revitalize the local economy and promote mutual growth. A signing ceremony was held at the LG Chem’s Hwachi plant in the Yeosu Industrial Complex. The company will spend 2.6 trillion won (US$2.34 billion) to upgrade a naphtha cracking center (NCC) and higher value-added polyolefine production facilities at its factory in Yeosu to start mass production in the second half of 2021. It has also promised to hire some 300 workers, including local talent, and purchase locally manufactured goods.

GS Caltex plans to invest 2.7 trillion won (US$2.43 billion) in a mixed feed cracker (MFC), which produces high margin olefin products, in Yeosu and create 500 new jobs.

Hyundai Chemical will also invest 2.7 trillion won (US$2.43 billion) in its heavy feed-based petrochemical complex (HPC) in Daesan, South Chungcheong Province, and hire 300 people.

In addition, S-Oil has promised to invest 5 trillion won (US$4.5 billion) to upgrade its NCC in Ulsan, South Gyeongsang Province, and create 400 jobs.