SEOUL, SOUTH KOREA – The Board of Investments (BOI), through its Resource-Based Industries Service (RBIS), led the Philippine delegation of eight in a five-day industry familiarization activity in South Korea to gather inputs for the formulation of the Philippine Bioplastics Industry Roadmap.
Drawing from South Korea’s successful bioplastics industry, this benchmarking activity is part of the “Building Plastic Circularity through Biodegradable Plastic to Ensure Zero Waste in the Philippines” Project. Notably, the BOI pursued the said project in collaboration with the Global Green Growth Institute (GGGI) and the Korea Export-Import (KEXIM) Bank.
One of the outputs of the project is the formulation of the Philippine Bioplastics Industry Roadmap, which is expected to be completed in the last quarter of the year.
Led by BOI Director Raquel B. Echague and Division Chief Francis M. Penaflor, the Philippine delegation was joined by distinguished officials from the Department of Science and Technology (DOST), Climate Change Commission (CCC), Philippine Plastics Industry Association, Inc. (PPIA), Philippine Alliance for Recycling and Materials Sustainability (PARMS) and Sustainable and Compostable Horizons Industry (SACHI) Group, Inc., a BOI-registered local manufacturer of bio-bags.
South Korea started developing its bioplastics industry in 1993. In 2023, the country’s production capacity reached 320 thousand tons accounting for 15% of the global biodegradable bioplastics production which is estimated at 2.18 million tons and forecasted to grow further to 7.4 million tons by 2028. The feat of South Korea in developing its bioplastics industry was anchored on the policy support, multi-stakeholder coordination including key companies and prominent brands, robust testing, certification and labeling systems at par with global standards, dynamic consumerism and aggressive investments.
After three decades since it initiated developing its bioplastics industry, South Korea has reached a prominent position in the global bioplastics industry driven by strong and organized stakeholders coming from all segments of the supply chain such as resin manufacturing, compounding and conversion with strong support from government and private institutions including academe such as Ministry of Economy and Finance, Korea Environmental Industry and Technology Institute (KEITI), Korea Institute for Industrial Economics and Trade (KIET), Korea Testing and Research Institute (KTR), Korea Research Institute of Chemical Technology (KRICT), Korea Conformity Laboratories (KCL), Kyung Hee University and Korea Bioplastics Association.
Most bioplastics applications in South Korea are in (mulch films and fishing nets and gears), packaging, single-use plastics, rigids, textiles, and other industrial applications.
This industry benchmarking and capacity-building activity included lectures on bioplastics testing, certification labeling, and R&D strategy. Participants visited the KTR testing laboratory and the KRICT Biodegradable R&D Facility, and shared therein were the best practices and policy options that contributed to the development of South Korea’s bioplastics industry. The DOST was informed of the need for enhanced R&D and testing facilities, while the CCC committed to developing a policy framework to emphasize the role of bioplastics in reducing plastic waste pollution and mitigating climate change.
Part of the week-long activity was the discussion with one of major Korean companies, CJ Chiljedang, which ventured in overseas investments in Indonesia for the manufacture of the biopolymer PBAT (polybutylene adipate terephthalate).
This activity allowed the BOI to develop strategies for positioning the Philippines as an attractive destination for future investments from not only CJ but also other major Korean companies like LG Chem, SK Chemical, and Lotte Chem, which are actively engaged in biopolymer and bioplastic manufacturing. Additionally, both PARMS and PPIA have pledged their proactive support for the strategic application of bioplastics in the Philippines.
At the culminating event, Director General Taekon Kim told the Philippine delegation that South Korea is closely monitoring Southeast Asia for potential investment partnerships in bioplastics. He noted the region’s comparative advantages in biomass and feedstock production, as well as the growing demand for bioplastics. Concluding the week-long activity, Director Echague highlighted the long-standing and robust culture of cooperation between South Korea and the Philippines.
Moreover, recent developments such as the signing of the Philippines-Korea Free Trade Agreement and the Bioplastics road mapping project of the BOI are strong testaments to the strong trade, industry development, and investment partnership between the two countries. (BOI)
