H. Yoo
Research expert covering South Korea
Rubber industry in South Korea - statistics & facts
Although natural rubber is not produced in South Korea, this has not stopped the country from becoming one of the largest rubber exporters in the world. Home to globally recognizable petrochemical brands such as LG Chem, South Korea has made great strides to more than compensate for its lack of natural sources of rubber and other advanced materials. As demand for electric vehicles and future mobility services increases, the South Korean rubber industry stands ready at the helm to meet the growing need for tires and other necessary rubber products.
Global synthetic rubber market
The country imports virtually all its natural rubber needs, mainly from Southeast Asian countries such as Indonesia and Thailand. Still, it covers most of its domestic demand for synthetic rubber and exports heavily to other countries. Being responsible for around 12 percent of global synthetic rubber production, South Korea's dominance in the global rubber market is palpable. It is the fourth largest exporter of passenger car, consumer, and medium truck tires to the United States, and much of South Korea's synthetic rubber is exported to China, Malaysia, and Indonesia. However, its current dominance in the global rubber market does not stand unchallenged with demands for higher wages and the rising cost of production domestically.Forecast for South Korea’s rubber industry
Indeed, revenue from synthetic rubber manufacturing has seen a decline in the past years. While offshore labor and production may provide a financial buffer for these manufacturers, this is only a temporary solution. However, concerns over deforestation and ecosystem disruption associated with the cultivation of natural rubber may potentially provide a renewed opportunity for the synthetic rubber industry. With South Korea's knowledge and experience in chemical engineering, hopes of staying ahead in an evolving market for raw materials like plastics and rubbers are high.
