The petrochemical industry on the brink...Government to help reorganize business

[Anchor]
The petrochemical industry, which has supported Korea's economy, which is centered on the manufacturing industry, has fallen into a long recession due to oversupply and economic recession from China.

In the end, the government announced measures as concerns grew that the entire industry could falter.

Reporter Choi Ah-young reports on what it contains.

[Reporter]
Lotte Chemical, which was in the midst of rumors of a liquidity crisis in Lotte Group.

In order to quell debt instability caused by worsening profitability, the group's symbol "Lotte World Tower" was even offered as collateral.

The petrochemical industry, once a sure money-making business, has fallen into a deep recession.

The nation's four largest petrochemical companies, which earned more than 9 trillion won three years ago, lost more than 500 billion won in operating losses by the third quarter of this year.

This is due to the deepening oversupply due to the low-cost offensive in China and the Middle East amid the economic downturn.

In response, the government has decided to help petrochemical companies reorganize their businesses.

The main goal is to rationalize oversupply facilities, strengthen competitiveness in the global market, and help convert high value-added products.

The government plans to provide 3 trillion won worth of policy financing to companies that voluntarily reorganize their businesses and also look at the impact on the local economy.

[Ahn Deok-geun / Minister of Trade, Industry and Energy: We will resolve various difficulties faced by companies in the process of reorganizing their businesses. In particular, areas that are expected to be difficult due to business reorganization will be designated as preemptive industrial crisis response areas....]

As a result, the petrochemical industry welcomes it and regrets that there is a lack of incentives and fundamental measures for companies to move voluntarily.

The government plans to come up with follow-up measures based on additional difficulties for companies in the first half of next year.

I'm YTN's Choi Ayoung.



Filmmaker: Ko Min-cheol
Video editing: Lee Eun-kyung
Design: Kim Hyo-jin