Seoul: The government will assist the struggling petrochemical sector with its "voluntary" restructuring initiatives, aimed at addressing the industry crisis caused by a global oversupply, the industry ministry announced Wednesday. The roadmap for restructuring the petrochemical industry focuses on reducing oversupply, transitioning to the production of high-value specialty products, and improving the financial stability of companies, while minimizing the restructuring's impact on regional economies.

According to Yonhap News Agency, the Ministry of Trade, Industry and Energy outlined that government support for the restructuring plan will adhere to three main principles: simultaneous restructuring of three petrochemical industrial complexes, sufficient self-rescue efforts and preparation of feasible business restructuring plans by companies, and the formulation of a comprehensive government support package.

The plan was revealed during a meeting of economy-related ministers focused on enhancing South Korea's industrial competitiveness. This meeting was convened amid concerns that local petrochemical companies might not endure the ongoing crisis, exacerbated by sluggish global demand and the influx of inexpensive Chinese products.

A recent report by Boston Consulting Group highlighted the severity of the situation, warning that if the downturn persists, nearly half of South Korean petrochemical firms may not survive the next three years due to their precarious financial health.

This situation is illustrated by a photo provided by Kumho Petro Chemical Co., depicting its plant in Ulsan, located about 310 kilometers southeast of Seoul.