South Korea Pyrolysis Oil Market Size, Share, Growth, and Industry Analysis, By Feedstock (PlasticLDPE (Low Density Polyethylene)HDPE (High Density Polyethylene)Polypropylene (PP), Rubber, BiomassLignocellulosicBagasse, Others), By Process (Fast Pyrolysis, Flash Pyrolysis) and Forecast, 2026-2034

South Korea Pyrolysis Oil Market Trends

Commercial-Scale Chemical Recycling and Refinery Integration

Technology is shifting from conventional batch thermal treatment toward continuous, supercritical and upgraded pyrolysis systems capable of processing contaminated mixed plastics. LG Chem's supercritical process targets 20,000 tons/year and can convert approximately 80% of incoming plastic into renewable oil, with the remaining roughly 20% available as process gas. The facility is designed around difficult-to-recycle streams that mechanical recycling cannot efficiently handle.

Petrochemical integration is simultaneously expanding downstream demand. LOTTE Chemical has commercialized petrochemical products using pyrolysis-oil-derived naphtha and previously outlined a pathway toward approximately 150,000 tons of pyrolysis-related business by 2030. LG Chem reported using 6,593 tons of post-consumer recycled raw materials during 2024, around 360 times its 2020 level, illustrating broader adoption of circular feedstocks alongside chemical recycling.

South Korea Pyrolysis Oil Market Drivers

Circular-Economy Investment and Petrochemical Feedstock Substitution

South Korea's petrochemical industry is investing in technologies capable of converting difficult waste streams into refinery-compatible feedstocks. LG Chem's facility has 20,000 tons/year capacity and its technology can achieve more than 80% conversion of plastic waste to renewable oil, while approximately 20% by-product gas can support facility energy requirements. Separately, the proposed Ulsan ARC was designed for around 320,000 tons/year of plastic recycling, equivalent to roughly 9% of the approximately 3.5 million tons of Korean waste plastic reportedly incinerated or landfilled annually.

South Korea Pyrolysis Oil Market Restraints

Capital Intensity, Feedstock Quality and Project Delays

Commercial plants face high capital requirements, variable waste composition and additional upgrading costs needed to meet petrochemical specifications. SK Geo Centric's Ulsan ARC was originally associated with approximately KRW 1.8 trillion of investment and a 215,000 m² site, but construction plans were subsequently postponed amid petrochemical-sector weakness and investment reassessment. The originally planned pyrolysis component targeted 66,000 tons/year, demonstrating both the scale potential and financial exposure involved in moving from pilot projects to industrial facilities.

South Korea Pyrolysis Oil Market Opportunities

High-Quality Circular Naphtha and Difficult-to-Recycle Plastics

Mixed PE, PP, films and contaminated packaging create a sizable addressable feedstock pool beyond mechanical recycling. LG Chem's process indicates that 10 tons of plastic waste can generate approximately 8 tons of pyrolysis oil and 2 tons of gas, equivalent to an oil conversion yield near 80%. Korea also generates approximately 50,000 tons of marine waste such as discarded fishing nets annually, providing another potential circular feedstock stream. Integrating such resources with certified petrochemical production can increase recycled content while reducing dependence on virgin fossil naphtha.

Challenges in South Korea Pyrolysis Oil Market

Scaling Plants While Maintaining Consistent Oil Specifications

The principal challenge is producing standardized output from heterogeneous waste while sustaining plant utilization and competitive economics. Planned commercial projects range from LG Chem's 20,000-ton/year facility to SK Geo Centric and Plastic Energy's originally proposed 66,000-ton/year Ulsan pyrolysis facility. At the same time, LOTTE Chemical's reported 1,500-ton/year PE/PP pyrolysis operation demonstrates the substantial scale-up required between pilot and large commercial systems. Project postponements additionally show that financing, petrochemical margins and capital allocation can materially influence commercialization timelines.

South Korea Pyrolysis Oil Market Segmentation

The industry is segmented by feedstock, process and fuel. Plastic leads feedstock revenue with approximately 42.7% of the 2026 total, while fast pyrolysis represents approximately 58.3% of process-based revenue. Rubber represents roughly 26.4%, biomass 19.8%, and other feedstocks 11.2% in 2026.

By Feedstock

Plastic

Plastic is the largest feedstock segment, valued at USD 8.83 million in 2026 and forecast to reach USD 19.89 million by 2034, registering a 10.68% CAGR. Its 2026 contribution is approximately 42.7%, supported by LDPE, HDPE and polypropylene waste streams.

Within plastic, LDPE, HDPE and PP provide attractive hydrocarbon-rich inputs for chemical recycling. Across the broader feedstock category, rubber is the fastest-growing supplied segment at 10.78% CAGR, reaching USD 12.36 million by 2034.

Rubber

Rubber accounts for USD 5.45 million in 2026 and is projected at USD 12.36 million by 2034, expanding at 10.78% CAGR, the fastest rate among the listed feedstocks.

Rubber therefore rises from approximately 26.4% of 2026 feedstock revenue, benefiting from waste-tire valorization and refinery-oriented applications. Plastic remains the largest comparator at USD 8.83 million in 2026 with a 10.68% CAGR.

Biomass

Biomass is valued at USD 4.09 million in 2026 and is projected to reach USD 9.19 million in 2034, representing a 10.64% CAGR. Lignocellulosic material and bagasse constitute key subcategories.

Biomass contributes approximately 19.8% of 2026 feedstock revenue. Rubber remains the fastest-growing overall feedstock at 10.78% CAGR, compared with biomass at 10.64%.

Others

Other feedstocks generate USD 2.31 million in 2026, increasing to USD 5.13 million by 2034 at a 10.49% CAGR.

The category accounts for approximately 11.2% of 2026 feedstock revenue. Rubber remains the fastest-growing feedstock at 10.78% CAGR, underscoring stronger commercialization in waste-tire conversion.

By Process

Fast Pyrolysis

Fast pyrolysis dominates process segmentation at USD 12.07 million in 2026, rising to USD 27.87 million by 2034 at an 11.03% CAGR. It represents approximately 58.3% of the supplied 2026 process total.

Fast pyrolysis is also the fastest-growing process, with its 11.03% CAGR exceeding flash pyrolysis at 10.28%, reflecting demand for higher throughput and rapid thermal conversion.

Flash Pyrolysis

Flash pyrolysis generates USD 8.62 million in 2026 and is forecast at USD 18.87 million by 2034, expanding at a 10.28% CAGR.

The process represents approximately 41.7% of 2026 process revenue. Fast pyrolysis remains both larger and faster-growing, registering an 11.03% CAGR through 2034.

By Fuel

Diesel, gasoline, fuel oil and other hydrocarbon outputs form the downstream fuel segmentation. Diesel and fuel-oil applications benefit from pyrolysis oil upgrading and blending potential, while gasoline-range fractions can enter further refinery processing.

Commercial economics increasingly depend on product quality, contaminant removal, calorific value and refinery compatibility. Fuel-specific numerical forecasts were not supplied in the mandatory dataset; therefore, no unsupported segment values or CAGRs are assigned.

South Korea Pyrolysis Oil Market Counties Outlook

South Chungcheong

The province is an emerging chemical-recycling hub centered on Dangjin. Against the national 2026 value of USD 20.68 million, plastic contributes 42.7% and biomass 19.8%. LG Chem's Dangjin installation adds 20,000 tons/year of designed pyrolysis-oil capacity, strengthening the province's contribution to plastic-based production.

Ulsan

Ulsan's industrial base links recycling directly with refining and petrochemicals. Fast pyrolysis accounts for approximately 58.3% of the supplied national process value in 2026. The Ulsan ARC was initially designed for approximately 320,000 tons/year of overall plastic recycling, including a planned 66,000-ton/year pyrolysis facility; however, reported postponement means these figures should be treated as planned rather than operating capacity.

Other Provinces

Remaining Korean regions collectively support waste collection, biomass sourcing, tire recovery and downstream fuel consumption. Rubber accounts for approximately 26.4%, biomass 19.8%, and other feedstocks 11.2% of the supplied 2026 feedstock total, providing diversified opportunities outside the principal petrochemical clusters.

Top players in South Korea Pyrolysis Oil Market

• SK Geo Centric Co., Ltd.
• LG Chem Ltd.
• LOTTE Chemical Corporation
• GS Caltex Corporation
• SK Innovation Co., Ltd.
• Plastic Energy Ltd.
• Mura Technology Ltd.
• Eco-In Energy Co., Ltd.
• Hyundai Engineering Co., Ltd.
• NETSPA Co., Ltd.
• KBR, Inc.
• PureCycle Technologies, Inc.
• Loop Industries, Inc.

Top Two Companies

• SK Geo Centric:A verified company-level percentage of national pyrolysis-oil revenue is not publicly disclosed, so assigning an unsupported market percentage would be misleading. The company nevertheless holds a prominent strategic position through waste-plastic pyrolysis technology, refinery integration and its partnership with Plastic Energy. The Ulsan project's pyrolysis component was designed for66,000 tons/year, within an ARC initially targeting approximately320,000 tons/yearof total plastic recycling. Subsequent reports indicated postponement of construction, making project timing an important competitive variable. SK Innovation's reporting also identifies SK Geo Centric as a key participant in the pyrolysis-oil ecosystem.
• LG Chem:A defensible percentage share of national pyrolysis-oil sales is likewise not publicly disclosed. LG Chem's competitive positioning is supported by completion of South Korea's first supercritical pyrolysis-oil facility, with20,000 tons/yearof capacity. Its technology is designed to convert more than80%of plastic waste into renewable oil while utilizing the remaining approximately20%as process gas. LG Chem also used6,593 tonsof PCR materials in 2024, approximately360-foldits 2020 level, demonstrating broader commitment to recycled feedstocks and circular petrochemical production.

Recent Developments in South Korea Pyrolysis Oil Market

• 2025: LG Chem reported that its 20,000-ton/year Dangjin supercritical pyrolysis-oil facility was preparing for trial operations, advancing commercialization of mixed and contaminated waste plastic recycling.
• 2025: Industry reporting indicated that SK Geo Centric's Ulsan recycling project had been postponed amid difficult petrochemical conditions and investment reassessment, affecting the timeline for the planned pyrolysis facility.

Research Methodology

The assessment uses 2025 as the base year, 2026 as the current year, historical evaluation for 2022–2024, and forecasts through 2034. The mandatory supplied numerical tables serve as the primary basis for market value, feedstock contribution, process contribution and CAGR calculations. Secondary research was used only to contextualize technology, operating and planned capacity, corporate initiatives and recent developments. Percentage contributions were calculated directly from supplied 2026 segment totals; publicly unavailable company revenue shares were not fabricated. The methodology combines bottom-up segment assessment, technology and capacity benchmarking, company-level validation and cross-checking of announced commercial projects to establish the 2026–2034 industry outlook.