KIET Korea Institute for Industrial Economics and Trade

Private oil companies in Korea such as GS Caltex, S-Oil and Hyundai Oilbank have recently announced plans to invest in petrochemical production facilities and have begun entering the chemical market in earnest. These investments include building a Naphtha Cracking Center (NCC) where naphtha, a product made at existing refining facilities, is used as a raw material to produce ethylene products.
As private oil companies have started entering the petrochemical market in Korea, both the supply of petrochemical products and the demand for increased production capacity are expected to rise.