Min Hyungbae Calls for Major Shift of Yeosu National Industrial Complex into a Specialized Chemical MPE Hub

From General-Purpose Petrochemicals to Batteries and Semiconductors
Vision for a Hub of Core Material Supply Chains

A proposal has been put forward to transform the Yeosu National Industrial Complex in South Jeolla Province, which is facing a structural crisis due to the downturn in the chemical industry, into a "materials, parts, and equipment (MPE) specialized complex" that produces core materials for national strategic industries, such as special chemical materials for semiconductor processes.

Min Hyungbae, Member of the National Assembly of the Democratic Party of Korea (Gwangju Gwangsan B), said on the 23rd, "We must move beyond the limitations of an industrial structure centered on general-purpose petrochemicals and focus on fostering the MPE industry that underpins key national industries such as batteries, semiconductors, automobiles, and aerospace," stressing the need for a grand transformation of the Yeosu National Industrial Complex.

Min Hyungbae, Member of the National Assembly of the Democratic Party of Korea

Min referred to Japan's 2019 export restrictions on key semiconductor materials and pointed out that dependence on a specific country for materials can lead to the risk of a shutdown across entire industries. He explained that, learning from the impact that uncertainty in the supply of key materials such as high-purity hydrogen fluoride had on industry, the stable domestic supply system for core materials, parts, and equipment should be treated as a national industrial security task.

Min stated that an MPE industrial ecosystem must be established by designating LG Chem, GS Caltex, Lotte Chemical, and Kumho Petrochemical as anchor companies, thereby linking demand creation, process conversion, demonstration, and securing initial volumes. Under this structure, anchor companies would serve both as stable demand sources for materials for strategic industries and as hubs for technology accumulation, while small and medium-sized MPE companies, as well as mid-sized firms, would be connected with large corporations in the research, development, and commercialization stages to receive support for market entry.

According to the plan, the Yeosu industrial complex would function as a hub supplying key battery materials such as secondary battery electrolytes and separators, high-purity and special chemical materials for semiconductor processes, high-performance and lightweight materials for future vehicles and aerospace, and key intermediate materials to stabilize supply chains for strategic industries.

Min said, "Along with the creation of the specialized complex, we will simultaneously pursue digital transformation and low-carbon process innovation to respond to global carbon regulations," adding, "The Yeosu industrial complex must be reborn as a model of a sustainable industrial complex with international competitiveness." He went on to say, "The Yeosu MPE specialized complex is a national strategy that not only revives the stagnant chemical industry but also strengthens the industrial supply chain of the Republic of Korea."