LG Chem Selected as Korea's First 'Advanced Technology U-Turn Company'

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy announced on the 19th that LG Chem has been selected as the first domestic 'Advanced Technology Domestic Return (U-turn) Company' in Korea.

LG Chem has announced plans to invest 210 billion KRW by December 2023 to establish a plastic bio (PBAT) production plant with an annual capacity of 50,000 tons in Seosan, Chungnam.

According to the 'Overseas Expansion Company Return Act (U-turn Act)' implemented since June last year, advanced technology companies can be designated as U-turn companies and receive support even without liquidating or downsizing their overseas operations. Following the amendment of the law, LG Chem applied to the Ministry of Trade, Industry and Energy for advanced technology confirmation and U-turn company selection in July and December last year regarding plastic bio (PBAT) technology, and was finally selected after review according to the relevant law.

The Ministry evaluated that LG Chem's domestic return of the PBAT business is significant from the perspective of expanding domestic investment in advanced industries. It is also expected to have the effect of promoting the domestic return of advanced industries in the future.

An official from the Ministry said, "We have long negotiated for LG Chem to invest domestically rather than expanding investment overseas in relation to the PBAT business," adding, "We evaluate that meaningful results have been derived through this domestic return selection."

PBAT is a type of synthetic resin biodegradable bioplastic material that rapidly decomposes through enzymatic reactions with oxygen, heat, and light in nature. As an eco-friendly advanced product, it is attracting attention as an alternative to single-use plastics, showing very high growth potential and is expected to contribute to the expansion of South Korea's exports. The global bioplastic market size is projected to expand from 12 trillion KRW in 2020 to 31 trillion KRW by 2025. The global demand for PBAT is also expected to rapidly grow from 300,000 tons to 1,120,000 tons during the same period.