Seoul: Finance Minister Koo Yun-cheol has urged struggling petrochemical companies to expedite their self-restructuring efforts, emphasizing that the "golden time" for such reforms will conclude by the end of the year.

According to Yonhap News Agency, the government had previously requested local petrochemical firms to outline detailed restructuring plans by year-end. This move is part of a broader initiative to reform the sector, which has been in a prolonged downturn due to a global supply glut.

Minister Koo highlighted the urgency during a meeting with industry-related ministers, stating, "As the deadline promised by the industry is fast approaching, I urge all industrial complexes and companies to engage in an all-out drive to speed up restructuring. The end of the year is the golden time."

In a significant step towards reform, the government signed a business restructuring agreement with 10 major petrochemical companies in August. Under this agreement, the firms aim to collectively reduce up to 3.7 million tons of naphtha cracking center production capacity.

South Korea, a major importer of naphtha-a crude oil derivative used in producing chemical materials for various industries including automobiles, electronics, and clothing-has been facing challenges. The domestic petrochemical industry is grappling with a prolonged slump due to slowing global demand and large-scale capacity expansions in China and the Middle East, exacerbating supply-demand imbalances.