The government expressed regret over the complacent recognition, saying, "It is like trying to save someone from drowning, but asking them to put down their bundle first."
Kwon Dae-young, the vice chairman of the Financial Services Commission, criticized the oil and petrochemical industry for expressing dissatisfaction with the government's "first self-help efforts, then support" policy.
Vice Chairman Kwon made these remarks during the 'Oil and Petrochemical Industry Restructuring Financial Sector Meeting' held on the morning of the 21st. The meeting included representatives from the five major banks: KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank, as well as Korea Development Bank, IBK Industrial Bank, and Export-Import Bank.
Vice Chairman Kwon stated, "Yesterday, the Ministry of Industry's plan was announced, and the discussions that had been stagnant for a year were concluded yesterday. However, I am hearing significant dissatisfaction from the oil and petrochemical industry." This criticism followed the government's announcement to reduce the production capacity of naphtha cracking facilities (NCC) by up to 25%, when industry voices complained that incentive measures were omitted.
Vice Chairman Kwon expressed regret over the complacent recognition, stating, "Let me be clear: the self-help efforts and the cooperation of creditors need to proceed organically and orderly to solve this issue effectively and wisely." He added, "Now is the time to cross the frozen river, and if we gather together and cross, the government will lend a helping hand, but if one goes alone, they risk the ice breaking."
Vice Chairman Kwon remarked, "The oil and petrochemical industry is fundamental to Korea's industrial competitiveness, but it is in a situation where further surgery cannot be deferred," urging not to forget "the tears of Malmö."
He identified the basic principles of the restructuring as "thorough self-help efforts, shared pain, and swift execution." He urged that for a successful restructuring, oil and petrochemical companies must demonstrate actions based on principles such as self-help efforts that are cutting into their own flesh and concrete, valid restructuring plans to gain the trust of the market.
He advised the financial sector to refrain from actions like retrieving existing loans until the restructuring plans are confirmed, urging them not to behave as if taking away umbrellas when it is raining.