Specialty Chemicals
Republic of Korea
Overview
2004 2005 2006 (estimated)
Total Market Size 25,093 25,775 27,292
Total Local Production 20,139 20,563 22,000
Total Exports 2,934 3,042 3,612
Total Imports 7,889 8,254 8,903
(Unit: USD million)
(Source: Korea Specialty Chemical Industry Association)
[ USD1= 1,200 Won (2004), 1,100Won (2005), 950Won (2006)]
Korean demand for high quality, sophisticated chemical products and associated substances for the development of new products is steadily increasing. In 2005, the total market size of Korea’s specialty chemicals was USD25.8 billion, a two percent increase over 2004. Total imports of specialty chemicals increased by 9 percent in 2005, during which time imports from the U.S. increased by six percent to USD1.27 billion. The U.S. has a 14 percent market share of the specialty chemicals industry.
The specialty chemical industry is projected to grow by seven percent over the next few years and is expected to result in a nine percent annual increase in demand for specialty chemical imports. In the specialty chemicals area, Korea lacks advanced chemical materials and technology, and has not made significant investments in R&D despite growing demand in the pharmaceutical, cosmetic/perfume, photochemical, and paint and ink industry sectors. As a result, Korea continues to heavily depend on imports to meet demand for intermediate raw materials and newly developed chemical products.
Best Products/Services
- Specialty chemicals for the medical and pharmaceutical industries
- Specialty chemicals for the cosmetics industry
Opportunities
Market demand continues to grow especially from Korean companies in the medical, pharmaceutical and cosmetic industries. These companies are very interested in using advanced chemical materials to produce new products. The technological level of domestic producers appears to be on par with advanced countries in terms of basic science and technology; consequently, newer technology is also very welcome. Korea is still developing an awareness of the importance of safety standards during the production of chemical products. Korean government agencies are actively strengthening alliances with multinational companies in advanced countries to secure components for the production of high-tech medical, pharmaceutical, cosmetics and biochemistry products.
Resources
Trade Show
XpoChem Conference 2006 (Annual)
Date to be determined
Key Contact
Ministry of Environment
Ministry of Labor
Local Contact
(Mrs.) Myoung Soo Lah
Commercial Specialist
Commercial Service Korea
U.S. Embassy
32 Sejong-ro Jongro-gu
Seoul 110-710 Korea
Tel: 82-2-397-4516
Fax: 82-2-739-1628
Email: myoung.soo.lah@mail.doc.gov
Website: www.buyusa.gov/korea