The chemical industry's future in sustainable materials: an interview with Koo Bon-woong

The growing pressure to balance sustainability with economic competitiveness among industries have pushed the chemical sector to navigate ways to balance profitability and policy with environmental responsibility. Despite changing market conditions, innovation in recycling and circular economy technologies continues to shape the chemical industry's long-term direction. In this interview, Koo Bon-woong, a new business development professional at LG Chem, shared insights to emerging investment priorities, the role of government policy in advancing green materials, and the industry's continued preparation for a more sustainable future.

First, could you tell us a little about what you’re currently doing?

I’m currently working in new business development at LG Chem, a South Korean chemical company. You could say my job involves identifying, developing, and investing in new business ventures that the company is looking to launch.

Among the new business opportunities you’re exploring, would you say you’re also interested in eco-friendly materials?

Yes, we’ve been paying close attention to eco-friendly materials recently. However, while eco-friendly materials received a great deal of global attention in the past few years—with a movement to use them even if they were expensive—the trend has shifted somewhat recently. Now, there’s a tendency to prefer materials that are cheaper and more profitable over those with purely eco-friendly characteristics.

Are there other factors you focus on more when making investment decisions?

Currently, competition with Chinese companies is extremely fierce. So, whenever possible—especially when Chinese companies adopt low-price strategies—we’re primarily looking for businesses where we can differentiate ourselves through performance or quality, allowing us to sustain our operations over the long term in the face of competition from these Chinese firms.

I understand that LG Chem is investing in bio-based raw materials, recycled plastics, and other eco-friendly materials. Are there any specific eco-friendly material sectors that you currently view as having the greatest growth potential?

Right now, we’re most interested in eco-friendly materials that are not only environmentally friendly but can also be applied to industries that are currently in the global spotlight, such as semiconductors and batteries. In particular, we’ve been focusing on recycling-related areas lately.

I wonder if customers and client companies place a high priority on ESG and carbon neutrality. Have you observed these demands firsthand, and do you think they’re influencing material development or investment decisions?

Just a few years ago, there was a trend where most U.S. customers were willing to pay a premium for materials produced through eco-friendly processes or obtained in an eco-friendly manner. However, recently, the trend has shifted slightly toward seeking materials that are more cost-effective—cheaper and with better performance—rather than just eco-friendly ones. Nevertheless, since these eco-friendly policies are likely to re-emerge as a global trend in a few years, I believe that even if there’s a temporary delay now, the market for eco-friendly materials will eventually return.

As you mentioned, the circular economy seems to be rising in importance. In the chemical industry, what do you think the circular economy signifies?

Recently, there have been many issues surrounding the nationalization of various resources. In particular, given that China holds the majority of the world’s oil and mineral resources, countries like ours that are resource-poor—especially those that lack resources such as oil entirely within their borders—believe that, in order to stabilize supply chains in the future, the circular economy—that is, recycling—must be applied across all industries without exception.

That’s why, even in the battery sector, we’re continuously exploring battery recycling. As for plastics, while they weren’t commonly recycled in the past, we’ve been recycling them recently. Looking ahead, we’re constantly seeking ways to recycle materials that ordinary people don’t typically encounter in their daily lives, such as seat materials.

You’re exploring a wide variety of recyclable materials. What do you think is the biggest challenge when it comes to expanding or implementing these efforts?

First of all, to run a business using recycled materials, consumers need to properly sort their used materials, and these recycled raw materials must be collected reliably. However, the reality is that plastics and other materials are not yet being collected and sorted by type effectively. In the case of batteries or car seats, once they’re used up, most are disposed of in ways that are difficult for us to manage. So, at present, we view collecting and sorting raw materials for recycling as the biggest challenge.

Finally, you mentioned earlier that there’s a tendency these days to focus too much on price and economic viability. Looking ahead, what do you think are some ways to broaden interest in eco-friendly materials again?

In fact, people have long recognized the importance of eco-friendly initiatives, but ultimately, I believe government policies in countries that significantly influence the global economy—such as Europe, the United States, and China—are the most critical factor. Until changes in the US administration, most companies expected that by using eco-friendly materials or engaging in eco-friendly businesses, they could command a premium over Chinese competitors. 

However, recently, these developments have been delayed due to government policies in various countries. I anticipate that in about four to five years, the trend will shift back toward eco-friendliness. Still, if we wait until that time to prepare our technology or business strategies, it will be too late. Therefore, I believe we shouldn’t put off eco-friendly initiatives—even though their importance has waned somewhat at the moment—and that we need to continue preparing for them consistently.

Do you think it will be possible to develop technologies that offer both economic viability and sustainability?

Yes, technological development in recycling is currently very active, so economic viability is gradually improving compared to the past. And as I mentioned earlier, if consumers do a very good job of collecting and sorting raw materials, costs will be significantly reduced, so I expect economic viability to improve even further in the future.