Petrochemical
Industry minister urges Yeosu petrochemical complex to swiftly draw up restructuring plans
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Industry Minister Kim Jung-kwan urged petrochemical companies in Yeosu on Wednesday to swiftly develop voluntary restructuring plans by year-end to qualify for government support amid a global oversupply crisis. While the Daesan complex in Seosan has submitted plans to cut naphtha cracking capacity by 1.1 million tons, Yeosu and Ulsan complexes have yet to finalize details.
The South Korean government announced a 2.1 trillion-won ($1.45 billion) financial package to support the restructuring of Lotte Chemical Corp. and HD Hyundai Chemical at the Daesan industrial complex. This is the first authorized project under the petrochemical sector's broader self-rescue plan. The initiative aims to address supply gluts by reducing capacity and shifting toward high-value and eco-friendly products.
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Trade Minister Yeo Han-koo met with major petrochemical companies on Dec. 9 to discuss responses to trade barriers imposed by major economies, such as import regulations and non-tariff measures. The meeting focused on strengthening government-private sector cooperation, identifying and improving non-tariff barriers, and creating new business opportunities through free trade agreements with emerging economies like Bangladesh and Pakistan. Yeo shared outcomes from his recent meeting with the European Commission and pledged government support.