Korean petrochem industry focuses on R&D to overcome slump

Lotte Chemical Co. CI

The South Korean petrochemical industry is turning its attention to research and development (R&D) as a strategy to break through the current market downturn. Companies are also reorganizing structures and expanding research areas in preparation for a market rebound.

According to Lotte Chemical Co.’s semi-annual report released on Wednesday, the company has restructured its R&D organization, particularly in its basic materials division.

Previously, its R&D strategy department, project teams, base technology organization, and innovation center were all under the umbrella of its integrated technology institute.

Now, the division has been split into two distinct research centers: the basic chemicals research center and the future technology research center, each with its own dedicated R&D project departments.

This move is seen as part of Lotte Chemical’s efforts to strengthen its focus on future growth areas.

The change is also believed to be part of a broader portfolio diversification strategy.

Since taking office, Lotte Chemical CEO Lee Hoon-ki has consistently emphasized the reduction of the company’s reliance on conventional materials while promoting new businesses such as battery materials and hydrogen.

“The separation of the research centers is intended to accelerate the transition of our business portfolio,” said a company official. “We expect to see increased momentum in research and development related to new business areas.”

The future technology research center is focusing on early-stage R&D for emerging businesses, including battery materials and hydrogen technologies.

Meanwhile, the basic chemicals research center is working on developing essential petrochemical materials, catalysts, and specialty products to strengthen the company’s competitiveness by securing core technologies.

LG Chem Ltd. has also undertaken R&D organizational changes.

According to its semi-annual report, LG Chem has established a new acrylic development department under its petrochemicals division. While LG Chem already had an acrylic business division, this is the first time a separate R&D team has been formed specifically for acrylic-related research.

Previously, the acrylic business division collaborated with the catalyst division on R&D. However, the new development department was created to enhance synergy in product development.

This department will focus on R&D of acrylic acid, C3-IPA, and coatings, while also advancing research into eco-friendly products.