Yeosu: Industry Minister Kim Jung-kwan on Wednesday urged petrochemical companies in Yeosu to "swiftly" formulate voluntary restructuring plans, emphasizing the yearend deadline to qualify for government support. This support aims to address the industry's crisis caused by global oversupply.

According to Yonhap News Agency, Kim's appeal was made during a meeting with senior officials from Yeosu-based petrochemical companies. This gathering followed the government's announcement in August of three principles to assist the struggling petrochemical sector. Companies were given until the end of the year to develop "voluntary" restructuring plans.

The government's principles include the "simultaneous" restructuring of major petrochemical complexes in Seosan, Ulsan, and Yeosu, "sufficient" self-rescue efforts, the preparation of feasible business restructuring plans, and the creation of a "comprehensive" government support package.

In response, the petrochemical industry has committed to reducing the capacity of naphtha cracking centers (NCCs) by up to 3.7 million tons and transitioning to high-value and eco-friendly products. Lotte Chemical Corp. and HD Hyundai Chemical Co., located in the Daesan complex in Seosan, have agreed to cut their NCC capacity by 1.1 million tons. Meanwhile, Yeosu and Ulsan complexes have yet to finalize their plans.

Kim emphasized the significance of Yeosu's role by stating, "If Daesan has opened the gate for business restructuring of the petrochemical industry, Yeosu will determine the industry's fate." He reiterated that the deadline for business restructuring plan submissions is the end of December, as set by the Ministry of Trade, Industry and Resources, and warned that companies missing the deadline would be ineligible for government aid.

During his visit to LG Chem Ltd.'s plant in Yeosu, Kim encouraged the company to invest in high-value specialty products, leveraging its "top-tier" research and development capabilities, as reported by the ministry.

Petrochemical companies expressed concerns to Kim about the burden from the recent electricity rate hike for industrial use. They also called for a special bill to support the industry and government assistance in securing appropriate visas for investment in the United States.