South Korea's Ministry of Trade, Industry and Energy recently announced that 16 major petrochemical companies in the country's three core production bases—Yeosu, Daesan, and Ulsan—have all submitted business restructuring plans by the government's deadline at the end of December last year. This progress marks a key breakthrough in the implementation of the "Petrochemical Industry Revitalization Direction" roadmap unveiled by the South Korean government in August last year, laying the foundation for a significant reduction in ethylene production capacity in the industry. Minister of Trade, Industry and Energy Kim Jung-kwan disclosed the above information at a special meeting convened with petrochemical companies. The meeting aimed to gather feedback from enterprises and promote the rapid implementation of restructuring proposals. He stated: "All companies submitted restructuring plans on schedule. If strictly implemented, the industry's target of reducing ethylene production capacity—by 2.7 to 3.7 million tons—is expected to be successfully achieved." Kim Jung-kwan emphasized that next year will be a critical period for advancing the industry's structural reform, and the process must be accelerated to achieve tangible results. He urged relevant companies to finalize and implement their business restructuring plans as soon as possible based on the submitted proposals. It is reported that the government will establish a Corporate Restructuring Plan Review Committee to review and approve the plans submitted by each company. Once approved, relevant departments will introduce a package of support policies, including financial subsidies, tax incentives, R&D support, and regulatory relief, to ensure the smooth progress of restructuring. To support the industry's transformation, the South Korean government launched the "Chemical Industry Innovation Alliance" on December 23 last year. This platform will integrate resources from leading enterprises, small and medium-sized chemical companies, universities, and research institutions, focusing on core material R&D and infrastructure construction to promote the green transformation of key industries, with priority given to the R&D needs of restructuring companies. In response to potential pressures on local small and medium-sized enterprises and employment due to restructuring, Kim Jung-kwan also addressed the issue. He acknowledged potential challenges in related areas and pledged to develop a comprehensive support plan for the chemical industry ecosystem by the first half of this year, focusing on alleviating operational difficulties for SMEs and strengthening employment security. Currently, Lotte Chemical and HD Hyundai Chemical have taken the lead in proposing specific restructuring plans, becoming the first companies to complete their plan formulation. According to the plan, Lotte Chemical's naphtha cracking unit in Daesan, with an annual capacity of 1.1 million tons, will undergo preliminary separation and subsequently merge with HD Hyundai Chemical's cracking unit in the same location, which has an annual capacity of 850,000 tons. Additionally, according to earlier reports, DL Chemical revealed in early December last year that its heavily indebted subsidiary, Yeochun NCC's No. 1 cracking plant in Yeosu, may face closure. The plant has an annual ethylene production capacity of 900,000 tons.