Jeonnam Province Seeks Solutions to Petrochemical Industry Crisis

Discussion on Designation of Preemptive Industrial Crisis Response Area and Other Measures

On the 21st, the Yeosu Petrochemical Industry Crisis Response Council was held at the Jeonnam Regional Headquarters of the Korea Industrial Complex Corporation. Provided by Jeonnam Province

Jeonnam Province held a meeting of the Yeosu Petrochemical Industry Crisis Response Council on the 21st at the Jeonnam Regional Headquarters of the Korea Industrial Complex Corporation. The meeting was organized to proactively address the crisis facing the petrochemical industry and to discuss institutional support measures.

The meeting was attended by more than 20 participants, including officials from Jeonnam Province and Yeosu City, provincial and city council members, representatives from related organizations, and company executives. They shared the progress of the application for designation as a preemptive industrial crisis response area, discussed the current status of addressing and proposing solutions to corporate difficulties, and explored various measures to overcome the downturn in the petrochemical industry.

In September last year, Jeonnam Province launched the Petrochemical Industry Crisis Response Council as a public-private partnership and established the "Plan to Strengthen the Competitiveness of the Yeosu Petrochemical Industry." The province also formally requested active government support for the designation of a preemptive industrial crisis response area and for solutions to corporate challenges.

In response, the government revised and announced the requirements for designating preemptive industrial crisis response areas to better reflect current realities, so that timely action can be taken if a region's main industry is expected to deteriorate. Jeonnam Province analyzed signs of decline in the region's key industry and was the first to apply for the designation of Yeosu City as a preemptive industrial crisis response area.

Currently, the designation of Yeosu City as a preemptive industrial crisis response area has completed an on-site inspection by the Ministry of Trade, Industry and Energy and is awaiting review by the Industrial Crisis Response Deliberation Committee. The final announcement is expected to be made in April.

Jeonnam Province has been working to resolve corporate difficulties through coordination between relevant departments and related agencies, as well as by submitting recommendations to the government. These efforts include: exemption of naphtha tariffs; securing industrial water (passing the preliminary feasibility study for the Gwangyang Phase IV industrial water supply project); and easing the frequency of regular inspections for hazardous chemical handling facilities (limited to facilities with excellent management). The province also plans to continue pursuing comprehensive solutions to major issues such as reducing industrial electricity rates and maintaining exemptions for naphtha and LPG tariffs.

An official from Jeonnam Province stated, "We will continue our efforts to resolve corporate difficulties and proposals in order to establish a foundation for the sustainable growth of the petrochemical industry and to invigorate the local economy in Jeonnam Province."