South Korea Propylene Oxide Market

South Korea Propylene Oxide Market Overview: 

The South Korea propylene oxide market size reached USD 418.00 Million in 2024. Looking forward, the market is projected to reach USD 571.65 Million by 2033, exhibiting a growth rate (CAGR) of 3.18% during 2025-2033. The market is primarily driven by robust demand from the automotive and construction sectors, where propylene oxide is utilized in producing polyurethanes for vehicle interiors and insulation materials. Additionally, advancements in environmentally friendly production methods and government initiatives supporting industrial expansion further bolster the South Korea propylene oxide market share.

South Korea Propylene Oxide Market Trends: 

Automotive Sector Demand

The automotive industry is a significant driver of the South Korea propylene oxide market growth. For instance, as per industry reports, South Korea ranks as the world’s fifth-largest finished vehicle producer with an annual capacity exceeding 4 million units in 2024. Nine Korean auto parts firms ranked in the global top 100, generating USD 75.37 Billion, representing 6% of total top supplier sales. The automotive sector contributed 14% to GDP and accounted for 13.2% of exports (USD 70.8 Billion in vehicle exports and USD 35 Billion in parts). Propylene oxide is essential in manufacturing polyurethane foams, which are extensively used in vehicle seating, insulation, and interior components. The increasing production of automobiles, coupled with a growing emphasis on lightweight and fuel-efficient materials, propels the demand for propylene oxide derivatives. Furthermore, consumer preferences for enhanced comfort and aesthetic appeal in vehicles contribute to the adoption of propylene oxide-based products in automotive applications. Strict emissions regulations and the trend toward environmentally sustainable solutions further drive the demand within this segment.

Government Support and Industrial Policies

Government initiatives and industrial policies play a crucial role in shaping the South Korea propylene oxide market landscape. Policies focusing on safety standards, environmental regulations, and technological innovation in the chemical industry support the growth of the propylene oxide sector. Emission controls, waste management guidelines, and support for research and development in sustainable production methods are some of the measures implemented. These policies not only ensure compliance with environmental standards but also encourage investment in advanced manufacturing technologies, thereby fostering market expansion. For instance, as per industry reports, South Korea is driving a high-value chemical materials program focused on semiconductors, displays, and secondary batteries, with a strong emphasis on advancing intermediate chemical capabilities. Spearheaded by the Ministry of Trade, Industry and Energy (MOTIE), the initiative operates through the Chemical Industry Forum and its five subcommittees: Petrochemistry, Plastics, Specialty Chemicals, Supply Chain, and Infrastructure. The Specialty Chemicals Division is working to boost R&D for essential intermediate inputs—such as high-purity solvents, etchants, and specialty polymers—that are critical for downstream tech sectors but currently sourced from abroad. It also aims to support 30 high-potential Korean firms and build a digital production platform to improve traceability and reduce costs. To reinforce this shift, the government is evaluating new legislation to encourage eco-friendly investment and align with global regulatory standards.

South Korea Propylene Oxide Market Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country/regional level for 2025-2033. Our report has categorized the market based on production process, application, and end-use industry.

Production Process Insights:

• Chlorohydrin Process (CHPO)
• Styrene Monomer Process
• Hydrogen Peroxide Process
• TBA Production Process
• Cumene-based Process

The report has provided a detailed breakup and analysis of the market based on the production process. This includes Chlorohydrin Process (CHPO), Styrene Monomer Process, Hydrogen Peroxide Process, TBA Co-Production Process, and Cumene-based Process.

Application Insights:

• Polyether Polyols
• Propylene Glycols
• Propylene Glycol Ethers (PGE)
• Polyalkylene Glycols
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes polyether polyols, propylene glycols, propylene glycol ethers (PGE), polyalkylene glycols, and others.

End-Use Industry Insights:

• Automotive
• Construction
• Chemicals and Pharmaceuticals
• Packaging
• Textile and Furnishing
• Others

The report has provided a detailed breakup and analysis of the market based on the end-use industry. This includes automotive, construction, chemicals and pharmaceuticals, packaging, textile and furnishing, and others.

Regional Insights: 

• Seoul Capital Area 
• Yeongnam (Southeastern Region) 
• Honam (Southwestern Region) 
• Hoseo (Central Region) 
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others. 

Competitive Landscape: 

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. 

South Korea Propylene Oxide Market News:

• As of February 2025, S-Oil’s $7 Billion Shaheen crude-to-chemical project in Ulsan, South Korea has reached 55% completion and is targeting commercial startup in the second half of 2026. The complex will include a mixed-feed cracker, LLDPE and HDPE production units, and a thermal crude-to-chemical facility. It will recover waste heat for power generation and supply feedstock through pipelines to domestic partners. S-Oil, majority-owned by Saudi Aramco, is also developing related logistics infrastructure and long-term supply deals.

South Korea Propylene Oxide Market Report Coverage: 

 
Key Questions Answered in This Report: 

• How has the South Korea propylene oxide market performed so far and how will it perform in the coming years? 
• What is the breakup of the South Korea propylene oxide market on the basis of production process? 
• What is the breakup of the South Korea propylene oxide market on the basis of application? 
• What is the breakup of the South Korea propylene oxide market on the basis of end-use industry? 
• What is the breakup of the South Korea propylene oxide market on the basis of region? 
• What are the various stages in the value chain of the South Korea propylene oxide market?  
• What are the key driving factors and challenges in the South Korea propylene oxide market? 
• What is the structure of the South Korea propylene oxide market and who are the key players? 
• What is the degree of competition in the South Korea propylene oxide market?  

Key Benefits for Stakeholders: 

• IMARC’s industry report offers a comprehensive quantitative analysis of various Korea market segments, historical and current market trends, market forecasts, and dynamics of the South Korea propylene oxide market from 2019-2033. 
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea propylene oxide market. 
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea propylene oxide industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.