South Korea Propylene Oxide Market Overview, 2030

South Korea’s propylene oxide (PO) market has developed as part of the country’s broader petrochemical expansion, which began in the 1970s and accelerated in the 1990s with large-scale refining and aromatics capacities. Initially, South Korea imported PO to meet limited demand, but by the late 1980s, the emergence of polyurethane, propylene glycol, and coatings industries justified domestic capacity. Global majors such as Lotte Chemical, SKC, Kumho P&B, and Hanwha Solutions invested in integrated production, often linked to propylene and styrene monomer chains, enabling economies of scale and export competitiveness. Over time, South Korea shifted from being a net importer to a significant exporter of PO derivatives, particularly polyether polyols and propylene glycols, serving markets in China, Southeast Asia, and beyond. With its strong shipbuilding, automotive, electronics, and construction industries, domestic demand grew steadily, while export opportunities anchored large-scale investments. In the 2000s, South Korea emphasized environmentally compliant technologies, gradually moving away from the chlorohydrin process toward more efficient routes such as PO/SM and HPPO, often through technology licensing with global leaders like BASF and Dow. Today, South Korea remains a critical hub for PO in Asia, with production capacity well-aligned to downstream integration, high R&D intensity, and a reputation for quality compliance. However, increasing competition from China and tightening global sustainability standards are prompting Korean producers to consider further investment in green chemistry, bio-based inputs, and circular economy practices. The country’s PO market evolution is thus a blend of import substitution, export expansion, and technological modernization.

According to the research report ""South Korea Propylene Oxide Market Overview, 2030,"" published by Bonafide Research, the South Korea propylene oxide market is expected to reach a market size of more than USD 1.10 Billion by 2030. South Korea’s PO industry is highly competitive, with local champions and multinational players adopting strategies centered on integration, flexibility, and downstream customer engagement. Vertical integration is the backbone of producer strategy: companies like Lotte Chemical and SKC operate across the propylene-to-PO-to-polyol chain, ensuring margin capture and logistics optimization. Many players are embedded in larger petrochemical complexes, giving them access to propylene feedstocks via steam cracking and refinery-linked streams. Route flexibility remains important: PO/SM processes dominate where styrene chain integration is strong, while HPPO projects are gaining ground as ESG-friendly solutions. Regional hedging strategies are evident as Korean producers balance domestic demand with strong export footprints, targeting China and Southeast Asia to offset local market fluctuations. Customer stickiness is fostered through downstream systems houses and long-term partnerships with automotive, electronics, and construction OEMs. On the customer side, polyurethane majors like BASF, Covestro, Huntsman, and domestic formulators drive demand, particularly in insulation, furniture, and automotive foams. Propylene glycol customers include pharmaceutical firms, resin manufacturers, and specialty chemical producers, with South Korea’s food, pharma, and electronics industries providing resilience. Export-driven resin and coatings industries further diversify demand. Multinationals operating in Korea leverage R&D centers to tailor formulations for high-performance applications, such as electronics encapsulants and automotive coatings. Strategies increasingly emphasize sustainability certifications, circular economy alignment, and process efficiency to maintain competitiveness against Chinese overcapacity. Overall, the competitive landscape reflects South Korea’s position as a technologically advanced, export-oriented PO hub with strong customer integration and global linkages.

South Korea’s production process mix for PO is dominated by the PO/SM (styrene monomer) process, reflecting the country’s significant styrene and benzene chain integration. Producers like Lotte and Kumho P&B leverage this integration to optimize co-product styrene supply and maintain cost competitiveness. This route remains a mainstay, although its reliance on styrene market cycles introduces volatility. The TBA co-product process plays a minor role, as Korea does not have large-scale isobutane/isobutylene feedstock advantages. The cumene-based process, being globally niche, has not been adopted locally. Chlorohydrin technology is largely phased out, given South Korea’s strict environmental compliance standards and its limited competitiveness relative to cleaner processes. The most dynamic development lies in the adoption of the HPPO (hydrogen peroxide to propylene oxide) process. SKC, in partnership with global technology providers, pioneered one of the world’s first commercial HPPO units in Korea, positioning the country as a leader in ESG-friendly PO production. This technology offers reduced effluents, right-sized modular plants, and better alignment with South Korea’s sustainability objectives. HPPO also provides flexibility to meet variable demand without the heavy co-product burden of PO/SM processes. Looking forward, Korea’s process strategy is likely to emphasize expanding HPPO capacities, both to serve domestic high-value industries (electronics, pharma, automotive) and to export derivatives into markets with rising sustainability demands. Thus, the Korean production landscape reflects both legacy reliance on PO/SM and leadership in HPPO adoption, reinforcing its position as a technologically advanced PO hub in Asia.

The application profile of PO in South Korea reflects its advanced industrial base, with polyether polyols as the leading segment, followed by propylene glycols, glycol ethers, and niche derivatives. Polyether polyols feed into a robust polyurethane industry that supplies rigid foams for construction insulation, refrigeration, and cold-chain infrastructure, as well as flexible foams for automotive seating, bedding, and furniture. The country’s strong appliance manufacturing and automotive exports drive consistent demand for PU-based materials. Propylene glycol is the second-largest application, particularly in food-grade and pharmaceutical markets, where South Korea’s healthcare and processed food sectors are well-developed. Industrial propylene glycol is used in unsaturated polyester resins (UPR) for shipbuilding, automotive, and construction composites, aligning with Korea’s heavy industry profile. Glycol ethers support coatings, adhesives, and cleaning agents, with demand concentrated in electronics, shipbuilding, and automotive sectors. Other applications include surfactants, lubricants, and specialty chemicals. Exports of PO derivatives, especially polyols and glycols, are significant, given South Korea’s strong global trade position. Application trends are also shaped by rising sustainability expectations, with demand for low-VOC glycol ethers and bio-based polyols gaining traction. Multinational and domestic producers alike invest in R&D to tailor formulations for high-performance applications, such as lightweight composites for automotive and insulation foams with improved thermal efficiency. Overall, South Korea’s application mix demonstrates both domestic industrial demand and a strong export orientation, positioning it as a supplier of high-value PO derivatives to global markets while addressing sustainability and technological innovation.

South Korea’s PO end-use industries are diversified, anchored by automotive, construction, electronics, pharmaceuticals, and packaging. The automotive sector is a major consumer of PU foams, coatings, adhesives, and elastomers, driven by South Korea’s role as a top global vehicle exporter (Hyundai, Kia, and suppliers). Building & construction is another leading sector, with rigid PU foams used for insulation, roofing, and panels, aligned with South Korea’s energy efficiency policies and large-scale infrastructure projects. The electronics industry is particularly important, as South Korea is a global leader in semiconductors, displays, and consumer electronics. Here, PO derivatives are used in coatings, encapsulants, and specialty foams. The textile and furnishing industry consumes flexible PU foams in mattresses and furniture, supported by domestic demand and export markets. The chemical & pharmaceutical sector is significant, particularly for propylene glycol in formulations, solvents, and excipients, given Korea’s advanced pharma and biotech industries. Packaging demand, especially for adhesives and sealants, is supported by e-commerce growth and food exports. Other industries, including food and coatings, use propylene glycol and glycol ethers for stabilizers, humectants, and solvents. This diversified end-use base provides resilience, balancing cyclical industries like automotive and construction with steady demand from pharma, food, and electronics. Producers are aligning strategies with end-use growth by investing in application-specific polyol systems, low-emission glycol ethers, and export-oriented PU derivatives. Ultimately, South Korea’s PO demand reflects its advanced, export-driven economy, strong downstream integration, and alignment with global sustainability and performance standards.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Propylene Oxide Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Production Process
• Chlorohydrin Process
• Styrene Monomer Process
• TBA Co-product Process
• Cumene-based Process
• Hydrogen Peroxide Process

By Application
• Polyether Polyols
• Propylene Glycol
• Glycol Ethers
• Others

By End-use industry
• Automotive
• Building & Construction
• Textile & Furnishing
• Chemical & Pharmaceutical
• Packaging
• Electronics
• Others (Food, and Paints & Coatings) Show more