As the government announced its policy for restructuring the petrochemical industry, financial authorities and the financial sector will also begin to support the restructuring. However, the principle has been established that financial support will only be provided if corporations make thorough self-rescue efforts.
On the 21st, the Financial Services Commission held a meeting titled 'Discussion for the Restructuring of the Petrochemical Business' under the chairmanship of Vice Chairman Kwon Dae-young with five major commercial banks including KB, Shinhan, Hana, Woori, and NH Nonghyup, as well as the Industrial Bank of Korea, the Industrial Bank of Korea, and the Export-Import Bank. The meeting was arranged to share the current status of the petrochemical industry and the direction of business restructuring, and to discuss the principles of financial support.
Vice Chairman Kwon Dae-young noted, 'The petrochemical industry is an indispensable backbone of Korea's industrial competitiveness, but the situation has become one where it can no longer postpone surgery.' He continued, 'We must not forget the "Tears of Malmö," when the Swedish shipbuilding company Kockums closed and transferred a large crane to Hyundai Heavy Industries for $1.'
The Financial Services Commission emphasized thorough self-rescue efforts, shared pain, and swift execution. Vice Chairman Kwon urged, 'Please show us actions based on principles such as self-rescue efforts that are as painful as cutting one's bones and specific and reasonable business restructuring plans.'
Vice Chairman Kwon also urged cooperation from the financial sector. He said, 'Until the business restructuring plan is finalized, please refrain from actions such as collecting existing loans as if taking the umbrella away when it rains.'
The financial sector reached a consensus to support through the 'Joint Agreement of Creditor Financial Institutions' if the self-rescue efforts of corporations and major shareholders and the validity of the business restructuring plan are acknowledged. If corporations apply for financial support in accordance with the agreement, existing loans will be maintained, but the specific details or levels will be determined through consultations between the corporations and the creditor financial institutions.