Ministry of Trade, Industry and Energy

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry. Since launching the public-private “Consultative Body on Competitiveness Building of the Petrochemical Industry” in April, the ministsry has been steadfastly collecting opinions of the petrochemical industry through meetings on specific topics and on-site conferences.

* Attendees: LG Chem, Lotte Chemical, SK geo centric, Korea Petrochemical Industry, Yeochun NCC, HD Hyundai Chemical, GS Caltex

The participants at the meeting shared the understanding that the petrochemical industry was hit by a historical oversupply last year, and it would not be easy to recover from its impact in the short term given the aggressive expansion by China and the risk of further expansion from the Middle East as the oil peak becomes more of a reality. The presidents recommended actively creating government incentives for business restructuring, because the high interest and uncertainties in the peterochemical industry are hindering investment decisions despite the need for rapid restructuring. In addition, the attendees discussed ways to step up cooperation among resident companies in industrial complexes to reduce costs, expanding policy-driven financial support, and creating an early market for eco-friendly products. MOTIE plans to actively consult with the relevant ministries on the suggestions made by the companies and continue to formulate measures to strengthen the competitiveness of the petrochemical industry.

Minister Ahn said, “The government will provide full support to help the Korean petrochemical industry leverage its global-level competitiveness to overcome the current crisis and rise once again.” He also urged the participant businesses to “give their best to prepare against disasters and keep their sites safe, as the recent heavy rain may affect on-site safety.” KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November.