Financial Sector's Exposure to Petrochemicals Reaches 30 Trillion Won... Creditor Banks to Convene Tomorrow

On the 20th, attendees including Minister of Trade, Industry and Energy Jung Kwang Kim, who participated in the "Voluntary Agreement Ceremony for Industrial Restructuring for the Rejump of the Petrochemical Industry" held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, are taking a commemorative photo after the ceremony. Sangseob Na, CEO of Hanwha TotalEnergies (front row from the left, counterclockwise), Kilsun Kang, President of Korea Petrochemical Industry Association, Sangmin Kim, Head of Petrochemical Division at LG Chem, Minister Kim, Youngjun Lee, President of Lotte Chemical, Jungwoon Nam, President of Hanwha Solutions, Iljun Park, Executive Vice President of Korea Chamber of Commerce and Industry, Imju Jung, CEO of Hyundai Chemical, Yeol Ryu, President of S-Oil, Seongwoo Heo, Vice President of GS Caltex. 2025.08.20 Photo by Dongju Yoon.

It has been reported that the amount of funds exposed to the crisis-hit petrochemical industry by domestic banks reaches 30 trillion won. The government is convening creditor banks to discuss response measures.

According to the financial sector on August 20, the Financial Services Commission plans to summon the heads of major creditor banks, including the five major commercial banks, on August 21 to discuss financial response measures for the petrochemical industry.

State-run banks such as Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea will also attend.

This meeting is a follow-up to the 'Ministerial Meeting on Industrial Competitiveness Enhancement (Sankyungjang)' held earlier that day, where a plan for restructuring the petrochemical industry was announced.

At the meeting, the government presented the principle of 'corporate self-help efforts first, government support later,' emphasizing that companies must first prepare a strong self-rescue restructuring plan in order to receive tailored support.

The Financial Services Commission is reportedly reviewing a plan for creditor financial institutions to sign an agreement to jointly respond to the funding needs of petrochemical companies.

The financial sector is expected to continue discussions on various support measures, including maturity extensions, interest payment deferrals, and new loans.