H. Yoo
Research expert covering South Korea
Rubber industry in South Korea - statistics & facts
Rubber has become a staple of most developed nations, being a versatile material for both commercial and industrial uses. While 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. The reliable production of synthetic rubber from petroleum raw materials has led to South Korean companies establishing themselves in the global rubber market.
Global synthetic rubber market
Just behind China and the United States in global synthetic rubber production, South Korea's dominance in the global rubber market is palpable. The country imports virtually all its natural rubber needs, mainly from Southeast Asian countries such as Indonesia and Thailand. However, with rubber trees vulnerable to climate change and ecological damage, the supply of natural rubber has become harder to come by. As such, South Korea covers most of its domestic demand for rubber with synthetic rubber and exports this heavily to other countries. China and Malaysia were top export destinations for much of South Korea's synthetic rubber items.Major players in the South Korean rubber industry
Indeed, most rubber manufacturing companies in South Korea rely on exports for most of their sales. One of the largest rubber manufacturers in South Korea is Kumho Petrochemicals Co., Ltd., known for its production of nitrile-butadiene latex used in the manufacturing of medical gloves. Other notable names in the country's rubber industry, particularly in tire manufacturing, are Hankook Tire, Kumho Tire, and Nexen Tire. While some of these have become household names in the global rubber industry, their current dominance does not stand unchallenged. For this export-driven industry, there are fears of rising ocean freight rates in the global logistics industry alongside demands for higher wages and rising costs of production domestically.Forecast for South Korea’s rubber industry
Profits from rubber manufacturing have 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. 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 through improved methods of processing are high.
