"Let’s Find a Breakthrough in Specialty Products" in Unison
Sharing Consulting Results Ahead of Petrochemical Business Restructuring
S&P: "Oversupply Continues... Recovery Expected Only in 2029"
About 300 people, including practitioners and CEOs from 33 member companies of the Korea Chemical Industry Association, gathered in one place to brainstorm ways to overcome the crisis in the domestic petrochemical industry. Voices were raised emphasizing the need to overcome external and internal adversities such as U.S. tariff pressures and the presidential impeachment turmoil, and to focus on cooperation and communication.
According to the Korea Chemical Industry Association on the 9th, the "First Half Industry Outlook Seminar" was held on the 7th at the Grand InterContinental Seoul Parnas Hotel in Gangnam-gu, Seoul, with themes including ▲Carbon Neutrality ▲2025 Petrochemical Outlook ▲Future of the Chemical Industry. Speakers included LG Chem, the top domestic petrochemical sales company, S&P Global, a global financial services firm, and Boston Consulting Group (BCG), one of the world's top three consulting firms.
On that day, the association explained that about 230 practitioners from member companies attended the general program, and about 50 CEOs and executives participated in a special program, showing high interest. At the seminar, Um Chan-wang, Vice Chairman of the Korea Chemical Industry Association, received positive responses when he said, "Let us not be trapped by heavy issues but expand the arena of communication and cooperation to respond to the flow of future changes."
S&P Global diagnosed the global petrochemical market as facing a "severe supply glut." They predicted that gradual recovery would only be possible after 2029. They suggested that for industry survival, diversification of raw materials and a clear roadmap for specialty product portfolios are necessary. The industry agreed and emphasized the need to move away from the olefin industry, which includes general-purpose products such as ethylene, propylene, and butadiene, and focus on specialty development.
On the same day, a program involving company representatives and executives was held simultaneously. Park Sung-taek, First Vice Minister of the Ministry of Trade, Industry and Energy, also attended to discuss ways to revive the stagnant industry. At this meeting, the association reported based on the consulting results of the petrochemical industry restructuring plan commissioned to BCG. The Ministry of Trade, Industry and Energy plans to refer to these consulting results when seeking government-led petrochemical business restructuring measures. Following December last year, the ministry will announce follow-up measures to enhance the competitiveness of the petrochemical industry in the first half of this year.
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