Seoul: Finance Minister Koo Yun-cheol announced that the government will quickly prepare support measures in conjunction with approving business restructuring plans for struggling petrochemical companies that have submitted voluntary restructuring proposals. All 16 major petrochemical companies and three industrial complexes have recently submitted their initial restructuring plans to the government, aiming to reduce the combined capacity of their naphtha cracking centers (NCCs) by up to 3.7 million tons.

According to Yonhap News Agency, Minister Koo emphasized the industry's proactive approach in meeting the deadline without missing the critical period, noting a stronger-than-expected commitment to capacity reduction. This marks a significant first step in addressing the industry's challenges. The submission deadline for these proposals is December 31, and the government plans to swiftly implement support measures alongside business restructuring approval early next year, specifically for the first restructuring proposal, known as the "Daesan No. 1 Project."

Under this voluntary restructuring scheme, local petrochemical companies are planning to reduce NCC capacity as part of extensive efforts to tackle an industrywide crisis driven by global oversupply. Minister Koo expressed confidence that if the plans are implemented faithfully, the original capacity reduction target of 2.7 million to 3.7 million tons will be achievable.

In August, the government introduced three guiding principles to support the troubled petrochemical industry and set a deadline for companies to develop voluntary business restructuring plans by the end of the year.