At the 17th Chemical Industry Day event
Preliminary meeting held with 11 representatives from the government, associations, and industry CEOs
Vice Minister Moon Shinhak: "Support for high value-added R&D"
Amid the challenge of reducing naphtha cracking center (NCC) capacity, the domestic petrochemical industry gathered for the Chemical Industry Day event. With the government scheduled to announce the ‘Petrochemical Research and Development (R&D) Roadmap’ next month, the event became a venue for top executives from the industry, as well as government and association officials, to discuss the future direction of industrial restructuring.
Shin Hak-cheol, Chairman of the Korea Chemical Industry Association and Vice Chairman of LG Chem, stated at the 17th Chemical Industry Day ceremony held at The Plaza Hotel in Jung-gu, Seoul on the 31st, “The decision to reduce NCC ethylene production capacity by up to 25% (about 3.7 million tons) by the end of this year is a significant step to restructure the industry and secure sustainable competitiveness.” He added, “This is not simply about reducing numbers, but an expression of our determination to accelerate the transition to high value-added and eco-friendly products and fundamentally transform the industry.” He also said, “I hope the government will sincerely evaluate business restructuring plans and support them through financial, tax, and R&D assistance.”
Shin Hak-cheol, Chairman of the Korea Chemical Industry Association and Vice Chairman of LG Chem, is speaking at the 17th Chemical Industry Day ceremony held at The Plaza Hotel in Jung-gu, Seoul on the 31st. Photo by Oh Ji-eun
About 300 people attended the ceremony, including Vice Chairman Shin, Moon Shinhak, Vice Minister of Trade, Industry and Energy, Eom Chanwang, Vice Chairman of the Korea Chemical Industry Association, Cho Wonil, President of the Korean Federation of Chemical Societies, and CEOs from the industry.
Vice Minister Moon stated, “Now is the golden time for structural reform,” and added, “The government will also prepare a support package, including financial, tax, and R&D assistance, as well as regulatory improvements, to help secure the industry’s fundamental competitiveness.” He continued, “We plan to announce the petrochemical R&D roadmap in November and will prioritize the high value-added R&D needs of companies undergoing restructuring.” He further added, “The government will stand by to ensure that facility rationalization becomes a stepping stone for future transformation.”
Prior to the ceremony, Vice Chairman Shin, Vice Minister Moon, Vice Chairman Eom, Baek Jonghun, President of Kumho Petrochemical, and eight other government, industry, and association representatives held a preliminary meeting for about 30 minutes. After the meeting, Vice Chairman Eom said, “We gathered industry opinions through today’s meeting,” and added, “As with the voluntary agreement ceremony held in August, an event will be held next month to announce the roadmap.”
Kumho Petrochemical, which focuses on high value-added specialty products, also emphasized the need for organizational transformation. President Baek stated, “Due to China’s aggressive low-price competition, we need to focus even more on R&D,” and added, “Support is needed for new technology development, such as investment in pilot projects.” Vice President Ko Younghoon was also reported to have said, “R&D tax credits are still lower than those in advanced countries,” and expressed hope that “the government will support high-risk basic research through a matching fund approach.”
During the government awards at the event, President Baek received the Silver Tower Order of Industrial Service Merit, and Kim Hanseok, Director of the SK Chemicals Research Institute, received the Bronze Tower Order of Industrial Service Merit. A total of 42 individuals were honored for their contributions to the advancement of the chemical industry.
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