South Korea's Minister of Trade, Industry and Energy, Kim Jeong-gwan, stated on Monday that the country's petrochemical companies are planning to reduce some production capacity to optimize the industry structure and improve operational conditions. Sixteen companies, including major naphtha cracker operators, have submitted preliminary plans as required by Friday.

Once the final plan for this petrochemical industry restructuring is approved by the government, the relevant companies will be eligible for policy support in areas such as taxation, regulation, and research and development. It is estimated that the annual production reduction scale is expected to be between 2.7 million and 3.7 million tons, which is equivalent to about one-quarter of the country's total production capacity.

This petrochemical industry restructuring is part of the industrial adjustment measures promoted by the South Korean government. The Ministry of Industry stated that the plans submitted by the relevant petrochemical companies will form the basis for rapidly advancing this process. At a meeting of corporate executives held on Monday, participants also discussed operational adjustments for Yeochun NCC, one of the country's major ethylene producers.

Minister Kim Jeong-gwan said at the meeting with company executives, "Sixteen companies, including major naphtha cracker operators, have submitted blueprints as requested by the authorities by Friday, with the deadline being the end of the year. This will serve as the foundation for swiftly restructuring the industry."

South Korea's major petrochemical producers include LG Chem, GS Caltex, and Lotte Chemical. This capacity adjustment plan involves some production capacities, including a new project originally scheduled to start operations next year.