2006 Good Year for South Korean Chemical Exports, Growth Expected to Slow in 200

Exports of petrochemical products from South Korea rose from $20.8 billion in 2005 to $24.1 billion in 2006, a 15.7 percent increase. The growth was attributed to higher crude oil prices and reduced domestic demand, according to the country's Ministry of Commerce, Industry and Energy. The greatest increase was observed for petroleum products, and China received the largest percentage of petrochemical exports from South Korea. Imports declined from the Americas but increased dramatically from the Middle East. In 2007, the growth rate for petrochemical exports is expected to slow as crude oil prices stabilize and new capacity in China comes on stream.

Separately, the South Korean Fair Trade Commission (FTC) is expected to fine LG Corp, GS Caltex and S-Oil for price fixing and cartel-like behavior. According to local media reports the companies could be fined as much as $213 million.

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