Overview
- The agreement targets reductions of 2.7 million to 3.7 million tons a year, equal to as much as about 25 percent of the nation’s 14.7 million-ton cracking capacity.
- Each company must submit a detailed restructuring plan by the end of 2025, with government aid limited to firms that undertake genuine cuts and competitiveness upgrades.
- Finance Minister Koo Yun-cheol called for "bone-grinding" self-restructuring, saying capacity reduction is key to restoring fundamentals after years of oversupply.
- The government is weighing Seosan for crisis-zone status, with Yeosu already designated, to channel subsidies or loans and cushion regional job risks.
- Restructuring options include vertical integration with refiners, shared operation or closures of crackers, while industry voices question the sufficiency of a voluntary approach; financial regulators plan talks with major banks on coordinated credit support.