Calls are growing to strengthen the safety standards for building materials after sandwich panels made with organic insulation were identified as one of the factors that worsened the recent deadly fire in Daejeon. In particular, inorganic insulation materials that are resistant to fire are drawing increasing attention.
According to the building materials industry on July 1, the sandwich panel market was estimated at approximately 1.3 trillion won ($960 million) last year. Products using organic insulation accounted for about 60% of that market.
Despite producing large amounts of toxic gas when burning, organic insulation materials such as Styrofoam command a high market share due to their lower cost and faster installation compared to inorganic alternatives. Inorganic insulation — made by melting silica sand, limestone and other glass raw materials at high temperatures and drawing them into fine fibers — contains little organic content and is highly fire-resistant. However, it has been overlooked at construction sites due to its higher price and the absence of legal mandates.
Recent large-scale fires causing massive casualties and property damage have spurred legislative efforts, particularly among lawmakers, to mandate the use of inorganic insulation materials.
Rep. Yeom Tae-young of the Democratic Party of Korea, who introduced a building act amendment bill in December last year, held a related forum on June 30 to accelerate the legislative process. The key provision of the amendment would mandate the use of non-combustible insulation for interior and exterior finishing materials in building parking structures and piloti ceilings.
Advanced economies also prioritize safety over ease of installation. In Europe and the United States, inorganic insulation reportedly accounts for more than 60% of the market.
If the use of inorganic insulation becomes mandatory, companies with established expertise in the field — such as KCC (002380.KS) and Byucksan (007210.KS) — are expected to benefit. KCC secured non-combustible performance certification for glass wool used as the core material in sandwich panels in 2021. Glass wool is a fiber-type inorganic insulation made from melted glass. Last year, KCC launched a new product called "Water Safe 24K" to improve the applicability of inorganic insulation. The product reduced density by approximately 40% compared to conventional glass wool, achieving a lighter weight that enhanced installation convenience and price competitiveness. Byucksan has been steadily building its track record in inorganic insulation products, including supplying glass wool products to the Gasan STT Data Center in Geumcheon-gu, Seoul, which was completed in July last year.
Meanwhile, according to IMARC Group, a market research firm, South Korea's insulation market is projected to grow from $1.118 billion in 2024 to $1.644 billion by 2033.
