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(Seoul=Yonhap Infomax) Jae Heon Lee –
Kim Jung-kwan, Minister of Trade, Industry and Energy, indicated there will be no extension to the deadline for petrochemical companies to submit self-rescue plans as part of business restructuring efforts. He emphasized that companies missing the year-end deadline will be excluded from government support and must survive on their own, underscoring the need for swift action.
At a meeting held at the Yeosu National Industrial Complex on the 26th, Minister Kim stated, “The deadline for submitting business restructuring plans, as announced at the Industrial Competitiveness Enhancement Ministers’ Meeting in August, is the end of December. There are no plans to extend this deadline,” adding, “Companies that fail to meet this deadline will be excluded from government support and will have to cope with future domestic and external crises independently.”
In August, the government unveiled the “Petrochemical Industry Rejump Strategy,” outlining three key directions for industry restructuring and three principles for government support. The plan covers simultaneous restructuring efforts at three major industrial complexes—Yeosu, Daesan, and Ulsan—and promises a comprehensive support package based on companies’ self-rescue efforts and the feasibility of their restructuring plans.
At the Daesan complex, restructuring proposals from Lotte Chemical Corp. and HD Hyundai Chemical are expected. Minister Kim noted that while Daesan has initiated the process, Yeosu’s actions will be pivotal in determining the fate of the industry’s restructuring.
The government plans to promptly begin reviewing restructuring plans submitted by petrochemical companies by year-end. Upon approval, support measures will be announced in tandem, taking into account the specificity of the plans and the validity of self-rescue efforts.
Additionally, the government will soon present a “Chemical Industry R&D Investment Roadmap” to guide the domestic petrochemical sector toward higher value-added products, and will prioritize large-scale R&D projects for companies implementing restructuring.
Alongside the meeting, Minister Kim inspected LG Chem Ltd.’s industrial site, urging continued investment and a focus on safety. He stated, “LG Chem, as a leading domestic petrochemical company with top-tier R&D investment, should leverage this restructuring not only to rationalize existing facilities but also to establish itself as a global leader in high-value specialty chemicals. Please ensure that safety is prioritized for both employees and partner company staff during production processes.”
A separate meeting was also held with chemical companies in Yeosu Industrial Complex, partner firms involved in maintenance, and steel product manufacturers from Yulchon Industrial Complex, to assess the impact of the petrochemical and steel industry downturn on the regional economy and to hear directly from local businesses.
Companies voiced concerns over the burden of rising industrial electricity rates. They called for swift enactment and implementation of the “Special Act on Petrochemicals,” smoother U.S. visa issuance for investments, and increased limits on state-backed guarantees for overseas plant construction projects.
Minister Kim acknowledged the burden of higher electricity rates and said future adjustments would be coordinated with power authorities to fully consider the impact on industrial competitiveness.
The special law on petrochemicals is being prepared for implementation in the first quarter of next year. The government will also actively support companies through a dedicated visa issuance desk at the U.S. Embassy in Korea and export financing products via the Korea Trade Insurance Corporation.
jhlee2@yna.co.kr
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