Seoul: The government has announced plans to swiftly devise a support package for the struggling chemical industry, which is poised to undergo voluntary restructuring in the near future, aiming for a recovery by 2026, according to the industry ministry.

According to Yonhap News Agency, the Ministry of Trade, Industry and Resources will soon reveal a comprehensive support package. This package will include financial aid, tax incentives, support for research and development, and regulatory streamlining for chemical companies that are initiating voluntary business restructuring efforts.

The ministry is also prioritizing the review of restructuring plans submitted by Lotte Chemical Corp. and HD Hyundai Chemical. These plans involve reducing the capacity of their naphtha cracking centers (NCCs) located in the Daesan industrial complex, a key region in the central area.

Ministry officials discussed these initiatives during a New Year's event for the chemical industry, which is currently facing significant challenges due to a global oversupply. Last year, the government introduced a plan to create a support package for chemical firms that propose "voluntary" self-rescue strategies to navigate the crisis.

Since the introduction of this plan, all 16 major petrochemical firms in the country have submitted their initial business restructuring proposals. These plans collectively promise to reduce the NCC capacity by 2.7 million-3.7 million tons, representing 18-25 percent of the nation's total NCC capacity.

To further bolster the sector's fundamental competitiveness, the government intends to unveil additional measures to support the industry's transition to high-value operations within the first half of the year, as stated by the ministry.