SINGAPORE (ICIS)–South Korea’s petrochemical restructuring will put downward pressure on economic growth in the short term, but will also allow companies to become more competitive via research and development (R&D) when global demand recovers, the Bank of Korea (BoK) said.
- Industrial production losses in 2026 up to won (W) 6.7 trillion, says BoK
- High reliance on Chinese exports, oil price volatility to contribute to losses
- Short-term losses can pay off for firms via investments in high-value facilities
With restructuring, 2026 industrial production will be reduced by up to W6.7 trillion ($4.55 billion) and cause ripple effects on downstream sectors, the BoK said in its economic outlook report on 27 November.
As of 2023, the petrochemical industry accounted for 5.6% of South Korea’s overall manufacturing production, 7.2% of exports, and 2.2% of employment, linking to critical industries such as oil and gas, as well as the supply of materials for downstream sectors such as automobiles, semiconductors, secondary batteries and defence.
Published by: www.icis.com
Jonathan Yee
28-Nov-2025
