Kim Jeonggwan, Minister of Trade, Industry and Energy, urged swift decisions from the petrochemical complexes in Yeosu and Ulsan, saying that follow-up measures must come in quick succession in relation to the approval of the business restructuring plan for the “Daesan No. 1 Project,” which is cited as the first case in the restructuring of the domestic petrochemical industry.
On the 26th, Minister Kim wrote on his Facebook page, “The approval of Daesan No. 1 is not the end but the beginning,” adding, “Our petrochemical industry can only stand again when bold restructuring is pushed forward simultaneously in both Yeosu and Ulsan.”
The Ministry of Trade, Industry and Energy explained that at the Industrial Economy Ministers’ Meeting held the previous day at the Government Complex Seoul, it reported the approval details of the business restructuring plans submitted by HD Hyundai and Lotte Chemical, and that various support measures would be activated jointly with the relevant ministries. This comes about half a year after the government, in August last year, asked companies to come up with alternatives to resolve the chronic oversupply in the petrochemical industry.
Kim Jeonggwan, Minister of Trade, Industry and Energy, is attending the Public-Private Joint Countermeasure Meeting on the US IEEPA Ruling at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, and delivering opening remarks. February 23, 2026. Photo by Yun Dongju
Minister Kim said, “This is the first tangible outcome of the industry taking the initiative and voluntarily embarking on restructuring amid a structural crisis across the industrial sector,” and stressed, “Wherever clear self-rescue efforts come first, we will responsibly provide backing by mobilizing every possible means, including financial support, tax incentives, research and development (R&D), and improvements in licensing and permits.”
He also warned that if restructuring in Yeosu and Ulsan is delayed, it could lead to a weakening of competitiveness across the industry. Given that the global market is being reshaped by large-scale capacity expansions in China and cost competition in the Middle East, his assessment is that delays in restructuring could directly result in loss of markets and an employment crisis.
He said, “Even if it involves pain such as capacity reduction, business integration, and capital contributions from shareholders, there is no future if we do not make decisions now,” adding, “Companies in Yeosu and Ulsan must promptly submit business restructuring plans that include sufficient self-rescue efforts and measures to enhance competitiveness.”
Minister Kim added, “If we cannot pick up speed, it will be difficult to protect the industrial base, the regional economies, and jobs,” and urged, “With the desperate sense that this is our last opportunity, I call on petrochemical companies in Yeosu and Ulsan to make bold decisions.”
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