The South Korean government has initiated a significant restructuring of its petrochemical industry, officially approving the first project at the Daesan petrochemical complex. This plan includes a robust financial support package worth over 2.1 trillion won for the companies involved. The Ministry of Trade, Industry, and Energy announced this approval for the restructuring plans submitted by HD Hyundai Oilbank, HD Hyundai Chemical, and Lotte Chemical, signaling a strategic move intended to overcome the current structural downturn in the sector.

The approved plan entails Lotte Chemical ceasing operations in its naphtha cracking facility designed for ethylene production at the Daesan complex, which has a capacity of approximately 1.1 million tons. Following the division of Lotte Chemical's Daesan operations, it will merge with Hyundai Chemical to form a new integrated entity managing both NCC and downstream facilities. Additionally, Hyundai Oilbank and Lotte Chemical will inject a combined total of 1.2 trillion won in capital into the newly formed corporation, with equity stakes adjusted to a 50-50 ratio between the firms.

In response to the challenging management environment, the government plans tailored support for the restructuring companies, including financial support worth up to 2 trillion won. This assistance will cover new financing and options for debt conversion, aimed at facilitating capital sourcing necessary for integrating operations and transitioning towards higher value-added production. Moreover, tax incentives reducing related local taxes by 75–100% during the restructuring process are part of the overall strategy to ease corporate tax burdens while expediting the corporate merger review timeline from 120 days to 90 days, further supporting swift execution of the restructuring efforts.