Global synthetic rubber market
The country imports virtually all its natural rubber needs, mainly from Southeast Asian countries such as Indonesia and Thailand. Still, it covers most of its domestic demand for synthetic rubber and exports heavily to other countries. Being responsible for around 12 percent of global synthetic rubber production, South Korea's dominance in the global rubber market is palpable. It is the fourth largest exporter of passenger car, consumer, and medium truck tires to the United States, and much of South Korea's synthetic rubber is exported to China, Malaysia, and Indonesia. However, its current dominance in the global rubber market does not stand unchallenged with demands for higher wages and the rising cost of production domestically.Forecast for South Korea’s rubber industry
Indeed, revenue from synthetic rubber manufacturing has seen a decline in the past years. While offshore labor and production may provide a financial buffer for these manufacturers, this is only a temporary solution. However, concerns over deforestation and ecosystem disruption associated with the cultivation of natural rubber may potentially provide a renewed opportunity for the synthetic rubber industry. With South Korea's knowledge and experience in chemical engineering, hopes of staying ahead in an evolving market for raw materials like plastics and rubbers are high.
