The Ministry of Trade, Industry and Energy (MOTIE) lent an ear to voices of the chemical industry while attending New Year’s gathering of those in the chemical industry, hosted by the Korea Chemical Industry Association (KCIA) at Plaza Hotel in Seoul on Jan. 8.
Deputy Minister Lee Seung-ryul, in charge of industry policy at MOTIE, said the government will take follow-up steps, allowing chemical companies to enter value-added materials markets related to demand industries, such as semiconductors, batteries and automobiles in the first half of 2025.
Deputy Minister Lee said the government will make joint efforts to help the petrochemical industry, a foundation of the Korean manufacturing industry, tide over its difficulties.
In his congratulatory speech, Deputy Minister Lee extended thanks to the chemical industry’s achieving $48 billion in exports, despite the inside and outside difficulties it suffered last year.
He called for a swift shift to value-added income streams and eco-friendly sectors amid the structural hardships caused by the global supply glut.
A plan to ramp up the competitiveness of the petrochemical industry was released on Dec. 23. The steps included support for inducing restructuring of businesses, such as the disposal of petrochemical companies’ businesses, M&As and the establishing of joint ventures.
Deputy Minister Lee Seung-ryul, in charge of industry policy at the Ministry of Trade, Industry and Energy (MOTIE) and Chmn. Shin Hak-cheol of the Korea Chemical Industry Association (KCIA) attend New Year’s gathering of those in the chemical industry, hosted by KCIA at Plaza Hotel in Seoul on Jan. 8. (Photos: MOTIE)
KCIA Chairman Shin Hak-cheol issued a statement in which he expressed thanks for the government’s announcing of the steps to strengthen the competitiveness of the petrochemical industry.
The New Year’s gathering was attended by some 150 people, including MOTIE Deputy Minister Lee, KCIA Chairman Lee and CEOs and major companies.
Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy discusses steps to step up the competitiveness of the petrochemical industry at the economic ministers’ meeting at Sejong Government Complex on Dec. 23 with Deputy Prime Minister-Minister of Economy of Finance Choi Sang-mok and other ministers and vice ministers in attendance online and offline.
Gov’t Fires Flare to Restructure Petrochemical Industry
MOTIE reported steps to step up the competitiveness of the petrochemical industry at the economic ministers’ meeting on Dec. 23.
The government confirmed the structural crisis of the petrochemical industry and proposed a roadmap for widespread restructuring.
MOTIE plans to induce voluntary restructuring of companies to ease a supply glut and come up with steps to offer support to minimize the impact on regional economies the restructuring would bring about.
Figures released by the government showed that the supply glut of the global petrochemical industry will persist into 2028, with the capacity of petrochemical facilities surging from 44 million tons in 2023 to 61 million tons in 2028, equivalent to five times more than Korea’s total petrochemical facilities.
The government plans to consider designation of preemptive response districts to brace for such a crisis in the first half of 2025.
It plans to drop the criteria for employment maintenance subsidy recipients targeting cooperative companies with overcome half of sales coming from the petrochemical sector while ramping financial support, such as extension of debt maturity and principal repayment delay.
The government plans to expand support for companies’ restructuring of businesses. The petrochemical industry plans to extend policy loads worth 3 trillion won.
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