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Despite not being an oil-producing country, South Korea boasts the fifth-largest crude oil refining capacity in the world, a testament to its superior scale and technological competitiveness. This positions the country as a major player in the global plastics market, contributing substantially to raw material production and supply. Recognized as a key player in the global plastics industry value chain, South Korea stands out for its competitive quality in plastic processing equipment and finished products manufacturing. Consequently, it serves as a crucial production base within the Asian region for the entire plastics supply chain. Additionally, there is robust demand for advanced plastic technologies from high-end automotive and electronics & electric applications.

South Korea is the fourth largest plastics producer in the world. Its plastics industry is projected to grow at a CAGR of 3.8% from 2024 to 2032, reaching USD 19.38 billion. In 2023, the country produced 19.9 million tons of commodity plastics, accounting for 5.2% of global production. Its production capacity included 6.4 million tons of polypropylene (PP), 3.7 million tons of high-density polyethylene (HDPE), 1.8 million tons of low-density polyethylene (LDPE), 1.5 million tons of polyethylene terephthalate (PET), 1.7 million tons of polyvinyl chloride (PVC), and 0.7 million tons of polystyrene (PS).

Korea's exports of polyethylene (PE) and PP reached record highs in the first half of 2024, with PE increasing by 11% to 1.67 million tons and PP rising by 17% to 1.7 million tons. While China remains the top export destination, its demand is expected to decline due to increased domestic production.

The performance of Korea's petrochemical industry has been on a downward trend since 2021, with operating profit margins projected to decline from 13.4% in 2021 to 0.6% in 2023. In response, the government is encouraging companies to transition from basic products to high-value-added specialty products, such as copolyester and ABS, using the "Special Act on Corporate Revitalization" to promote industry restructuring.

The South Korean plastic market, valued at USD 3.17 billion in 2023, has a packaging segment that accounts for 40%-50% of its total size. The industry is set for growth, with projections indicating a CAGR of 2.55%-4.79% from 2024 to 2032 respectively, according to IMARC. Key factors driving this growth include the expansion of e-commerce, rising demand from the food and beverage sectors, and advancements in smart packaging technologies.

Sustainability trends are also reshaping the market, with biodegradable packaging market expected to increase from USD581 million in 2024 to USD902.9 million by 2033. However, China's expanding production capacity and the potential shift towards paper packaging may pose challenges on the Korean packaging industry. There is also a growing emphasis on the development of recycled and biodegradable materials to meet increasingly stringent environmental regulations.

The engineering plastics industry in South Korea is experiencing significant growth, with forecasts estimating a market value of USD 6.79 billion by 2029, reflecting a 7.11% increase from the 2024 value of USD 4.82 billion, according to Mordor Intelligence. This expansion is primarily driven by two sectors: electronics and electric, and automotive manufacturing. Both of which are experiencing substantial transformation due to technological advancement and sustainability initiatives.

In 2024, the electronics and electric industry accounted for approximately 62% of South Korea's engineering plastics market value. The presence of major global players, such as Samsung Electronics and LG Electronics, significantly influences the sector's growth. The industry's production value is projected to rise from USD 400 billion in 2023 to USD 598 billion by 2029, propelled by the increasing demand for consumer electronics, IoT devices, and 5G technology.

The automotive sector is the second-largest segment within South Korea's engineering plastics market, largely driven by the efforts of leading global automakers, Hyundai and KIA. Their production is expected to increase from 3.7 million units in 2023 to 4.0 million units by 2029, fueled by the industry's shift toward lightweight materials and electrification.

The robust engineering plastics industry in South Korea, which is experiencing remarkable growth, is playing a significant role in the country's dominance in the global electric vehicle (EV) battery market. Valued at USD 4.82 billion in 2024, this market is projected to reach USD 6.79 billion by 2029.

A new range of cutting-edge engineering materials from global suppliers is emerging, promising to transform EV battery design with superior insulation properties, enhanced flame resistance, and significant weight reduction, all while streamlining the assembly process. These materials are well-positioned to compete effectively in the Korean EV and automotive market.

In the medium term, the South Korean engineering plastics market is poised for sustained growth, supported by a robust manufacturing base in the electronics and automotive sectors. Government initiatives promoting recycling standards and sustainable practices, along with increasing demand for high-performance materials and technological advancements in the Internet of Things (IoT), robotics, and 5G connectivity, further enhance the positive outlook for the market.

South Korea has emerged as a leading global performer in plastic waste separation, with a reported recycling and composting rate of 60% as of 2022. The country's recycled plastics market is expected to experience substantial growth, with a projected CAGR of 6.4% from 2024 to 2032, potentially reaching a total of 21.2 million tons by 2032, according to IMARC Group.

Government policies, such as the Extended Producer Responsibility (EPR) scheme and the Framework Act on Resource Circulation, are instrumental in driving demand. These initiatives mandate the inclusion of recycled content in products and offer incentives for eco-friendly practices.

Concurrently, the South Korean government has set an ambitious target to reduce plastic waste generation by 50% and to increase the recycling rate from the current 34% to 70% by 2030. To this end, the government is implementing a series of policy measures, including strengthening the Extended Producer Responsibility (EPR) system for plastic manufacturers and the restriction of the use of disposable products.

In line with these initiatives, leading Korean plastic raw material companies are developing innovative circular solutions. The market for recycled and bio-plastic products in Korea is expected to grow even faster in the future. Innovations in chemical recycling, along with partnerships between local and global entities, are anticipated to play a crucial role in driving this growth. However, it is essential to recognize that scalability and cost efficiency remain significant challenges that must be addressed to ensure the successful implementation of these strategies.

The plastics processing machinery industry in South Korea, alongside the country's notable expertise in producing plastic raw materials, has demonstrated consistent growth in both domestic demand and exports. The market size is estimated to be around USD 1.2 billion to 1.5 billion in 2024, representing 3%–4% of the global market, which is projected to be valued at USD 37 billion to 39 billion.

Market research conducted by organizations such as Research & Markets and IMARC Group highlights several key factors driving this growth. The demand from the automotive, electronics, and packaging sectors is expected to be a primary driver, contributing to a CAGR of 5%-6% between 2024 and 2028, with an estimated value reaching USD 1.6 US billion to 1.9 billion by 2028. Additionally, a long-term CAGR of 7.4% is projected from 2024 to 2032, in line with the broader plastics market growth, with forecasts indicating a potential market size of USD 2.5 billion to 3 billion by 2032.

Injection molding machines dominate the South Korean plastic processing machine industry. As of 2023 the primary export destinations for Korean injection molding machines included the U.S .(USD 317 million), Mexico (USD 190 million), and China (~USD 48 million), according to the statistics provided by World Bank and other sources, with increasing demand observed in Southeast Asia and the Middle East. The growing demand for lightweight plastic parts, driven by the expansion of the electric vehicle market, has led to a surge in exports of high-precision and high-efficiency injection molding machines. In addition to the automotive industry, the export shares are also significant in the consumer goods, packaging, electronics and electric equipment industries.

In terms of imports, as of 2023, South Korea primarily sourced plastic injection molding machines from China (USD 465 million), Japan (USD 230 million) and Austria (USD 110 million), which accounted for 91% of the total import value. Other significant importers included Switzerland, Italy, Thailand, and Germany.

A significant proportion of the products manufactured by South Korean extruder manufacturers are exported to countries such as Vietnam, Bahrain, Bolivia, Malaysia, India, China, and Indonesia. Concurrently, South Korea imported plastic and rubber extruders valued at approximately USD 70.5 million in 2023, primarily from China, Japan, Austria, Germany, and Italy. It is estimated that 40%-50% of these imports come from Chinese manufacturers, who leverage mass production systems and price competitiveness to maintain a competitive edge in the global market.

Furthermore, the South Korean blow molding machine market is estimated to be valued between USD 950 million and USD 1.6 billion in 2023–2024, representing a significant segment of the country's broader plastics industry. Key growth drivers in this sector include rising demand for packaging and the increasing use of blow-molded components in electric and hybrid vehicles within the automotive sector.

South Korea is rapidly emerging as a dominant player in the Asia-Pacific region's plastic processing machinery sector, with demand primarily driven by the automotive and packaging industries. In response, Korean manufacturers are enhancing their production systems, particularly focusing on injection molding machines to meet the needs for automotive parts, including electric vehicle battery cases. The integration of advanced technologies and the development of eco-friendly solutions are expected to provide a competitive advantage in the global market.

According to research firm INNOPOLIS, the medical plastics market in South Korea is expected to experience steady growth, reaching an estimated USD 1.581 billion by 2024. From 2024 to 2030, the market is projected to expand at a CAGR of 8.2%, reaching a market size of USD 8.690 billion by 2030. This growth is driven by the aging population and the resulting need for healthcare infrastructure. This, in turn, raises demand for advanced medical technologies and devices, and increases the need for biocompatible materials focused on sustainability and biodegradable options.

The agricultural plastics market in South Korea is showing steady growth, driven by the increasing use of greenhouse films and mulching films. This trend is linked to the rising adoption of smart farm technology, which aims to create stable crop-growing conditions amid climate change. SPERICHAL Insights reported that the South Korean mulching film market reached USD 294 million in 2023, with a projected a CAGR of 4.5% from 2023 to 2033, potentially reaching USD 457 million by 2033. Additionally, the demand for eco-friendly materials, such as biodegradable plastics, is expected to rise in response to the growing concerns about waste film management.

In line with global trends, the South Korean government and companies across various sectors are focusing on innovation and sustainability. This has led to increased demand for biodegradable plastics and bioplastics, as well as a strong need for solutions that facilitate the large-scale adoption of more efficient plastic recycling methods, including chemical recycling technologies.

The demand for highly functional engineering plastics remains robust, particularly as the lightweighting trend spreads across key industries like automotive and electronics, in which Korean companies are leading the market. Innovative plastics technologies are essential for supporting the future mobility industry, especially for autonomous and electric vehicles.

CHINAPLAS 2025 will feature a number of South Korean producers of plastic raw materials, including traditional powerhouses SK chemicals and Lotte Group's chemical division, as well as South Korean plastics processing equipment manufacturers that are expanding exports to Southeast Asia and the Middle East, showcasing their innovative technologies and reliable product quality. In addition, delegations of buyers from a variety of end-use industries from South Korea are expected to attend CHINAPLAS 2025 in Shenzhen, seeking solutions that are more cost-competitive and offer a broader range of performance. visit: www.chinaplasonline.com. www.chinaplasonline.com。