Overcoming the Petrochemical Slump... HD Hyundai Oilbank's Major Investment in Daesan

Expansion of Daesan Industrial Complex by 99,000 Square Meters
SAF Demonstration Center to Be Established
South Chungcheong Accelerates Transition to New Industries

As the domestic petrochemical industry remains mired in a prolonged recession with no breakthrough in sight, HD Hyundai Oilbank is attempting to turn the tide by launching a new business initiative focused on sustainable aviation fuel (SAF) in Daesan, South Chungcheong Province.

South Chungcheong Province and Seosan City are supporting the expansion of the industrial complex and the establishment of an SAF demonstration center, accelerating the region's industrial transformation.

HD Hyundai Oilbank, headquartered in South Chungcheong Province, is making a large-scale investment in the new energy sector in an effort to overcome the downturn in the petrochemical industry.

On December 8, South Chungcheong Province and Seosan City signed a memorandum of understanding (MOU) for the "Expansion of the Daesan Industrial Complex and Establishment of the SAF Comprehensive Demonstration Center" at the provincial government situation room, with Governor Kim Tae-heum, Seosan Mayor Lee Wan-seop, and HD Hyundai Oilbank CEO Song Myungjun in attendance.

Under the agreement, HD Hyundai Oilbank will newly develop 99,141 square meters in the area of the municipal solid waste sanitary landfill in Daesan-eup by 2031 and incorporate it into the Daesan General Industrial Complex. Of this, 10,000 square meters will be used as the site for the comprehensive SAF demonstration center, while the remaining land will be allocated for building new energy industry plant facilities.

SAF is an emerging industry that countries around the world are competitively seeking to lead, as international obligations to reduce aviation carbon emissions are strengthened. This investment is drawing attention as it aligns with South Chungcheong Province's strategy for an eco-friendly transformation of its petrochemical industry.

South Chungcheong Province and Seosan City have pledged swift support for permits, administration, and financial matters to expedite the project.

Governor Kim Tae-heum stated, "With the petrochemical industry in a prolonged recession, South Chungcheong Province will make every effort to support the resurgence of the sector, including HD Hyundai Oilbank. Now that Daesan has been designated as a region facing industrial and employment crises and the first business restructuring plan has been submitted, the province will provide comprehensive support."

He added, "The SAF demonstration center will be a national turning point, positioning South Chungcheong Province as a future hub for eco-friendly fuels."