InterviewSK Chemicals bets on plastic recycling to overcome industry downturn

SK Chemicals Executive Vice President Kim Hyun-suk, who heads the Recycling Business Division, speaks during an interview with The Korea Times at the chemical firm's headquarters in Seongnam, Gyeonggi Province, July 28. Courtesy of SK Chemicals

SEONGNAM, Gyeonggi Province — SK Chemicals’ strong first-quarter earnings came as a surprise to investors, defying the ongoing slump in the domestic petrochemical industry following a global economic slowdown and an oversupply of low-priced Chinese products.

During the first three months of the year, the company showed a 98.5 percent year-on-year jump in operating profits to 36.9 billion won ($26.6 million).

The main driver was SK Chemicals’ green chemicals business division, focused primarily on producing copolyester, a plastic widely used in cosmetics packaging, household items and home appliances, due to its clarity, chemical resistance and processability. Along with U.S.-based Eastman Chemical, SK Chemicals maintains a duopoly in the global copolyester market.

However, the company is now looking for a new source of income from plastic recycling.

SK Chemicals Executive Vice President Kim Hyun-suk, who heads the Recycling Business Division, told The Korea Times in a recent interview that the company aims to make additional profits from the sector.

“We’re developing new products under the theme of ‘recyclable and recycled,’ working closely with the green chemicals division to meet the changing needs of our customers,” he said.

Earlier this year, SK Chemicals reorganized into two divisions to sharpen its specialty focus.

In addition to collaborating with government agencies and local authorities, the company has also partnered with domestic and international firms, including the Austrian firm Durmont — the world’s leading automotive carpet maker — for long-term supplies of recycled plastic.

In the interview, Kim pointed to depolymerization technology as the company’s key differentiator in securing global competitiveness.

He explained that depolymerization is a chemical process that breaks down polyester into smaller molecules for recycling, enabling infinite recycling of polyester waste.

“This technology allows us to process not just clear PET bottles, but also polyester films, fibers and colored bottles that can’t be recycled using traditional physical methods,” Kim said.

He addressed lingering concerns over the safety of plastics recycled through depolymerization, emphasizing that the process almost completely eliminates impurities.

“For products that touch food, we’ve received safety certifications from accredited agencies like the U.S. Food and Drug Administration,” he said.

Depolymerization also enables the production of r-BHET (recycled bis-hydroxyethyl terephthalate), a key material for copolyester. With global demand increasing for copolyester containing recycled content, SK Chemicals has steadily expanded its investment in depolymerization facilities.

Cosmetics containers made with SK Chemicals' recycled materials are on display at the company's exhibition booth for the 2025 China Beauty Expo in Shanghai in May. Courtesy of SK Chemicals

The company currently uses a plant in China for part of its recycling operations. In 2023, SK Chemicals acquired Shuye’s Chinese facility and established SK Shantou.

“The Shuye facility has the potential to produce 70,000 tons of r-BHET annually,” Kim said. “China offers us access to affordable waste polyester feedstock, which is a significant advantage.”

Looking ahead, Kim remains optimistic.

With an estimated 1.2 million tons of polyester expected to be replaced by chemically recycled PET by 2030, Kim sees clear growth potential for SK Chemicals’ recycling business.

“Through our recycling business, we aim to fundamentally address global plastic waste while building a more sustainable future,” he said.

“We’re committed to pursuing both environmental protection and profit within the same framework,” Kim added, affirming SK Chemicals’ “Healthcare, Earthcare” vision.