Plastic is an indispensable material in our everyday life. It is light and strong, and its ability to be easily shaped with heat makes it essential in modern society. In addition, its low raw material and production costs mean it’s used far more widely than other materials. However, despite these advantages, plastic remains at the heart of environmental issues, mainly because it is often used once and then thrown away.

The disposal of plastics brings various environmental problems. Most plastics don’t break down easily, remaining in the environment for hundreds of years and contaminating ecosystems. Over time, they break into tiny fragments that can accumulate in the bodies of humans and animals. In fact, microplastics have even been found in our drinking water. Is it any better to burn them? Unfortunately, the answer is no. Incineration generates carbon dioxide and harmful chemicals, contributing to air pollution and climate change. While plastic offers convenience, its disposal leads to significant problems. Unless we shift away from this single-use consumption model, it will continue to harm both the environment and all of us.

As part of its commitment to a circular economy, LG Chem has designed the Circular Loop system*. Today, we’ll explore how this system contributes to protecting the environment.

*Circular economy: A system in which materials and energy circulate in a closed loop, much like in natural ecosystems.

Circular Loop: A circulation system for a world without waste

Circular Loop is a new standard designed by LG Chem for sustainable material circulation. This system breaks away from the traditional linear economy*, where resources are used and discarded, and instead pursues a virtuous cycle in which resources return to raw materials and are reborn as new products. Circular Loop is not just an eco-friendly campaign or a simple recycling initiative. It is a technology-driven circulation design system developed by LG Chem, one that goes beyond conventional recycling by restoring the true value of resources and integrating environmental sustainability into the process. Through Circular Loop, LG Chem aims to use resources more efficiently and minimize carbon emissions.

*Linear economy: A system in which resources are used and then discarded as waste. It is called ‘linear’ because the flow of materials moves in a straight line, from production to distribution to consumption.

Circular Loop is composed of two main parts: Re-cycle and Bio-cycle. The Re-cycle loop collects used and discarded materials such as plastics, restores them to their raw material state through either physical or chemical methods, and reprocesses them into new products. This recycling process can be carried out in two different ways.

The first is mechanical recycling. This involves washing and crushing waste plastics, then melting them with heat to create recycled plastic granules. It is suitable for single-material plastics or those with minimal contamination, and is efficient in terms of both cost and energy.

The second is chemical recycling. Through pyrolysis, waste plastics are broken down at the molecular level and converted back into fossil-based raw materials such as Circular Naphtha*. These raw materials are then reprocessed into resins and eventually made into new products.

Chemical recycling can process composite materials and contaminated waste, breaking them down to raw material level without quality loss, enabling the creation of brand-new plastics. It also allows for infinite circulation, making it a promising long-term solution. LG Chem is working with Mura Technology to further develop and commercialize this advanced technology.

Unlike Re-cycle, the Bio-cycle loop is a bio-based, biodegradable circular system. It is designed to produce resins using renewable resources, such as plant oils and biomass, instead of fossil-based raw materials. Products made from these resins are intended to biodegrade after use and return to nature. In short, it is a nature-friendly circular system, designed for sustainability from beginning to end.

*Circulation Naphtha: A recycled resource produced by refining pyrolysis oil derived from waste plastics or used tires. It serves as an alternative to fossil-based naphtha and is used as a raw material in petrochemical products such as plastics.

Actual cases and applications of the Circular Loop

LG Chem’s Circular Loop system goes beyond a simple concept and is being implemented in various ways across real industrial settings. The three circulation strategies, mechanical recycling, chemical recycling, and bio-based systems, each enable sustainable resource circulation in distinct ways and are applied across a wide range of industries.

LG Chem, in collaboration with CJ LOGISTICS, has established a circular system by collecting packaging wraps discarded from logistics centers and mechanically recycling them into new wraps for reuse. As a result, approximately 2,000–3,000 tons of waste are recycled annually.

Through its collaboration with COSMAX, LG Chem developed an eco-friendly cosmetic container using recycled PCR* ABS plastic. This serves as a representative case in the cosmetics industry for reducing plastic usage and accelerating the transition to sustainable materials.

There is also active progress in the field of chemical recycling. LG Chem, in partnership with NETSPA, is undertaking a project to collect marine waste, such as discarded fishing nets, and convert it into new plastic raw materials using chemical recycling technology. This process contributes to protecting the marine ecosystem and reducing carbon emissions.

In addition, LG Chem is introducing supercritical pyrolysis technology through a strategic collaboration with the UK-based Mura Technology. This technology can break down composite and contaminated plastic waste, materials difficult to treat through conventional mechanical recycling, into circulation naphtha, a high-quality raw material for plastics. To commercialize this technology, LG Chem has begun construction of a pyrolysis oil plant in Dangjin, Chungcheongnam-do, Korea, with an annual production capacity of 20,000 tons, and is currently preparing for trial operations.

*PCR (Post-Consumer Recycled material) refers to recycled plastic made from materials that have been used and discarded by end consumers.

Meanwhile, LG Chem is promoting sustainable resource circulation by utilizing renewable bio-based raw materials. A representative example is the development of BCB ASA, an eco-friendly material for the furniture industry. While conventional ASA was made entirely from fossil-based raw materials, BCB ASA incorporates bio-based inputs, helping to reduce carbon emissions. Currently, BCB ASA is being applied to ‘e’clat,’ a molded furniture material developed in collaboration with Hanssem.

LG Chem has also become the world’s first company to commercialize 3HP (3-Hydroxypropionic Acid), a key raw material for compostable plastics. Derived from plant-based sources, 3HP is produced through microbial fermentation, significantly advancing the potential for mass production of biodegradable bioplastics.

Efforts to replace fossil-based raw materials are also underway. LG Chem has utilized HVO (Hydrotreated Vegetable Oil), a bio-based material derived from waste cooking oil and plant oils, in the production of resins. In 2024, LG Chem strengthened its global collaboration by signing an agreement with Italy’s state-owned energy company ENI to establish a joint HVO production plant. HVO performs a similar role to conventional naphtha and can be applied to the manufacturing of key resins such as ABS and PC. Resins made with this bio-based raw material maintain the same performance as traditional products while significantly reducing greenhouse gas emissions, making them a promising sustainable alternative.

These cases clearly demonstrate how LG Chem’s Circular Loop system is being implemented in real industrial settings. In particular, the Bio-cycle loop, through its strategic approach of designing sustainability from the beginning, is unlocking new possibilities for resource circulation based on renewable bio-based raw materials.

LG Chem’s Circular Loop operates in two forms, Re-cycle and Bio-cycle, but both move toward a single goal: sustainability. In the face of the complex challenges of plastic waste and carbon emissions, LG Chem is developing solutions based on technologies that set a new standard for the circular economy.

We appreciate your continued interest in LG Chem’s Circular Loop, a key driver in building a sustainable future.