1
Index
Korea,
Where Success Knows No Limits
1.
3
Fine Chemicals
2.
6
3.
10
4. Success Cases
12
5. Investment Incentives
16
2
 According to the Small and Medium Business Administration (2013), the global fine
chemical industry stood at USD 1 trillion in 2012 and is expected to reach USD 1.2 trillion
in 2016, posting a CAGR of 4.7%.
(Unit : USD 100 mn)
Global fine chemicals market outlook
CAGR
4.7%
12,078
11,536
11,018
10,524
10,051
2012
2013
2014
2015
2016
Source: Small and Medium Business Administration (2013), ｢Technological roadmap for SMEs: Issue No. 7 Chemical Process｣
3
(Unit: EUR bn)
5th
Japan
151.6
Germany
149.7
China
1,047.3
Korea
132.1
USA
465.7
Source: CEFIC (2014), The European Chemical Industry: Facts and Figures
4
 Global fine chemicals market growth by segment: Semiconductor parts materials (10.0%),
display parts materials (9.2%) and separators (8.3%)
Global fine chemicals materials market outlook by key segment
(Unit: USD 100 mn)
2012
Dye & pigment
Semiconductor
parts materials
Display parts materials
2013
2014
2015
2016
CAGR (%)
223
229
235
242
249
2.8
834
917
1,009
1,110
1221
10.0
625
683
745
9.2
524
572
Eco-friendly fine paint
223
231
239
248
257
3.6
Bioplastics
113
149
196
259
342
3.2
Fine nanofilms
336
356
377
400
423
5.9
Separators
171
185
200
217
235
8.3
Smart fiber
1770
1832
1896
1962
2031
3.5
63
66
69
73
77
5.1
Automotive plastic materials
Source: Small and Medium Business Administration (2013), ｢Technological roadmap for SMEs: Issue No. 7 Chemical Process ｣
5
7
13th
23rd
31st
Source: Chemical & Engineering News (July 28, 2014), "Cover Story: Global Top 50," p. 11
6
6
 By segment, the basic inorganic chemicals segment stood at KRW 7.466 trillion in 2013,
the largest in the fine chemical industry, followed by paint and ink (KRW 6.21 trillion) and
pigment and dye (KRW 2.585 trillion).
Production of Korea’s fine chemical industry by segment - Top 3
7,466,339
KRW mn
6,210,604
KRW mn
2,585,338
KRW mn
Basic inorganic chemicals
Paint & Ink
Pigment & Dye
Note: The chemical industry includes fertilizer, rubber and plastic manufacturing industries, excluding pharmaceuticals
Source: KOSTAT, KOSIS DB
7
7
 Korea’s fine chemicals exports stood at USD 10.629 billion in 2013, up 6.6% YoY from USD
9.973 billion in 2012, while Korea’s fine chemicals imports amounted to USD 17.555 billion
in 2013, down 1.7% YoY from USD 17.864 billion in 2012.
Export and import trends
(Unit : USD 1 mn, %)
Export
Import
18,549
17,864
CAGR
7.9%
17,555
9,528
10,629
10,907
9,973
CAGR
14.8%
3,523
2010
2011
2012
8
2013
Note: Based on HS Code
Source: KITA, KOTIS DB
.
Global market share in 2012: Key electronic devices & parts
Display
DRAM
Samsung
Electronics
LG Display
Samsung
Electronics
Hynix
Small
rechargeable
battery
Samsung SDI,
LG Chem
Handset
Samsung
Electronics
LG Electronics
Pantech
Source: KIET; Korea Eximbank Global Economy Research Institute (2014.6.23.); Naver Search Statistics
9
 Korea boasts advantages thanks to the presence of globally competitive homegrown
companies, which have worldwide supply chains with a number of foreign companies, and
the Korean market’s role as a test bed.
R&D centers with superior talent pool
Ability to secure excellent R&D pool
10
Greater Seoul Area & central inland
Kyungwon University
Nanoparticles
Soongsil University
Molecular
design
Banwol & Sihwa
Industrial Complex
Small fine
chemicals
clusters
Gyeongsang Province - Ulsan
Seoul
Sihwa
Banwol
• Ulsan Petrochemical Industrial Complex
• Ulsan Fine Chemical Industry Center
• Ulsan New Chemical Commercialization
Center of the Korea Chemical Research
Center
• Korea Testing & Research Institute and
Biochemical Commercialization Center
• Ulsan College (identification of chemicals)
Ulsan
Jeolla Province
Yeosu
Petrochemical
Industrial Complex
Gwangyang Bay
Fine chemicals
materials cluster
Sunchon National
University
Environmentfriendly Materials
Process Technology
Innovation
Sunchon Gwangyang Bay
Yeosu
11
 Foreign investment in Korea’s chemicals product industry, including fine chemicals,
experienced significant fluctuations from 2009 to 2014, and chemicals products accounted
for the largest part of the chemical engineering segment until 2013.
FDI trends
(USD mn, %)
2009
2010
2011
2012
2013
2014
Chemical engineering
204
927
1,831
1,286
867
3,178
Chemicals
152
847
1,769
1,087
597
743
12
Source: Ministry of Trade, Industry & Energy (2014.4.24)
Note: Figures on a notification basis
$ $
$
$
DuPont
Rohm & Haas
BASF
Dow Chemical
Solvay
Merck
Sumitomo Chemical
Teijin
JX Nippon Oil &Energy
Ibiden Graphite Korea
13
•
BASF, which is the world’s largest comprehensive chemicals company and headquartered in Germany, operates about 280
production sites and six integrated production facilities in about 200 locations around the world. BASF manufactures fine
chemicals, functional chemicals, agricultural chemicals, plastic and much more.
Investments
2013
Sept.
2014
2017 예정
BASF and MOTIE signed a letter of intent on the
establishment of its new Electronic Materials R&D
Center Asia Pacific.
R&D Center at Sungkyunkwan University
-
The 2,400㎡ facility is expected to generate
production worth KRW 220 bn and many highskill jobs and employ 42 researchers at the
master’s or doctoral level.
- The R&D Center will focus on researching
inorganic materials and formulations for highperformance applications for LEDs and
photovoltaics.
▲BASF researchers at the Electronic Materials R&D
Center Asia Pacific
14
 Solvay SA is a global chemicals company founded by Ernest Solvay, a Belgian industrial
chemist, in Belgium in 1863. Solvay is listed on the NYSE-Euronext Brussels and Paris
Investments
Sept.2014
Opened the Ewha-Solvay Research & Innovation Center and relocated its global specialty chemicals
business to the R&I Center
The 6,600 ㎡ R&I Center is the fourth such center in Asia.
The Center develops OLED display technologies.
It serves as a regional center in Asia.
By 2017
Plans to invest KRW 120 bn in the Greater Seoul Area to establish production facilities measuring
99,000 m²
To produce ESS, PV, electronic and display materials
15
Regional
headquarters of
global companies
R&D centers
Target companies
The government will maintain a flat income tax rate of 17% for foreigners working at
headquarters in Korea. This rate was supposed to expire by the end of December, 2014.
The maximum visa duration for foreign employees working at headquarters has been
extended to five years from the current one to three years.
Income tax cuts for foreign technicians working at
foreign-invested R&D centers will be extended to 2018.
Customized efforts to attract investment from
major Japanese parts and materials companies
16
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