The government said that submissions of business restructuring plans it had requested from petrochemical corporations by the end of this year have all been completed, and projected that the "final business restructuring plan," with adjustments to the details, will come out around the first quarter of next year. Based on that, it plans to proceed with a full-scale restructuring.
Minister Kim Jung-kwan of the Ministry of Trade and Industry (MOTI) met with reporters after finishing a chief executive officer (CEO) roundtable on business restructuring in the petrochemical industry held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on the 22nd, and said, "Each corporation will go through board and other procedural steps, and the 'final petrochemical business restructuring plan' could come out in the first quarter of next year."
Sixteen domestic petrochemical corporations at the three major petrochemical complexes in Yeosu, Daesan, and Ulsan submitted their business restructuring plans to the Ministry of Trade and Industry (MOTI) by the 19th, the deadline set by the government. LG CHEM, LOTTE Chemical, Hanwha Solutions, HD Hyundai Chemical, Korea Petrochemical Ind. Co., GS Caltex, S-Oil, SK Geocentric, Hanwha TotalEnergies, DL Chemical, Hyosung Chemical, and SK Advanced — 12 companies — attended the roundtable.
The Minister said, "This restructuring is not something corporations are doing because they are struggling and have no choice, but a first attempt by sound corporations to save the industry," and added, "We heard about various difficulties such as communication issues with holding companies or parent companies, labor-management issues, and rising electricity rates, and the government decided to play an active role."
There was also mention of the "Daesan Project No. 1," for which HD Hyundai and LOTTE Chemical have applied for business restructuring approval. The Minister said, "The government support package for Daesan Project No. 1 is scheduled to be announced in late Jan. next year."
Corporations attending the roundtable reportedly raised requests for support measures needed during the restructuring process. DL Chemical Vice Chairman Kim Jong-hyun said, "Industrial electricity rates have risen a lot, and feedstock prices are also expensive," and noted, "We conveyed that the industry's difficulties in these areas are significant." DL Chemical is a major shareholder of Yeochun NCC jointly with Hanwha Solutions.
Kim said of the progress on the consolidation of Yeochun NCC and LOTTE Chemical facilities, "We proceeded with discussions with the aim of trying a round of structural innovation among companies in the Yeosu industrial complex, and we submitted that plan to the government," adding, "We need to see which plant reductions are the most economical."