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Korean Policy Issues for the Bio-based Chemical Industry as a New Growth Engine

Author Jang-Keun Nam et al. Date 2014.12.29 Page 311

In this paper, we will examine current situation and prospects of biochemical industry, one of new growth engines, including domestic and overseas market. Also, we will examine biochemical strategy of chemical corporations in developed countries and policy making of
those countries to understand the mega trend of biochemical industry. Furthermore, we will provide Korean companies and government with directions of biochemical expansion strategy through identifying trends of advanced countries’ corporations, technology, industry and policy. In detail, we will identify technology level, bio-plastic development phase, corporate strategy and concrete action plans to compare them with the one of current Korean biochemical industry and to suggest the total solution in perspective of supply and demand.
We will interview with a group of experts to analyze competency of biochemical industry compared to existing petrochemical industry through ‘value-cost analysis’ as well. Biochemical industry will ‘replace’ the incumbent petrochemical industry or develop new ‘value-added’ products which are not found in petrochemical industry because biochemical industry is not totally new industry. Therefore, practical adaptability will depend on the industrial competency of biochemical industry compared to petrochemical industry. Thus, this research paper will focus on comparison between petrochemicals and biochemicals.

We will suggest mission objectives by period - short-term, medium to long-term - to drive Korea into one of the advanced countries in biochemical industry by making policy which can create demand, enhance the production capacity, and develop the industrial ecosystem.
Abstract of this document by each chapter is as follows.

We used three research methods - ① examine the publications, ② analyze the major corporations’ cases and interview with experts in local institutions (European Bioplastics, GTAI, EuropaBio, SusChem, OECD, etc.) of EU countries (Germany, Belgium and France) ③ interview with Focus Group, discussion with them, correspond written answers with them, or interview with experts by contacting them in person in order to listen to a variety of opinions. We aggregated their evaluations on competency level of Korean biochemical industry against petrochemical industry, excluding the extreme arguments after conducting those works. We also collected their common comments with respect to forward policy objects of Korean biochemical industry.
We indicated a vision for new economic growth engine to enter the 4th in 2030 and to exit from petrochemical industry.We suggested fostering market demand, stables ecurement of biomass, developing innovative ecosystem, fixing the policy system and regulations as detailed tools to attainthe objectives smoothly.