Government to provide a support package worth over 700 billion won for Yeosu petrochemical business restructuring

To help restructure the petrochemical industry, which is in crisis, the government has rolled out financial and tax support worth more than 700 billion won for business restructuring projects in the Yeosu area of South Jeolla Province. At a meeting of relevant ministers held on the 22nd at the Government Complex Seoul, the government announced the progress and support measures for the “Yeosu No. 1 Project.” This plan focuses on reducing production capacity and transforming the industry’s fundamentals through Hanwha Solutions and DL Chemical’s inkind contributions, Lotte Chemical’s unification of the Yeosu NCC business structure, and the partial suspension of operations at Yeochun NCC facilities. The government will provide up to 450 billion won in new loans through Korea Development Bank and others, and has decided to postpone debt repayment until 2029 in consideration of the restructuring period. This also includes 200 billion won in import insurance support, expanded tax benefits, and the application of dutyfree status to naphtha and crude oil. The companies plan to make additional investments in supply chain integration and the transition to highvalueadded materials.