South Korea's petrochemicals industry calls for government's deep involvement to tide over the storm

The Federation of South Korea Industries (FKI) has submitted an "emergency response strategy" to the Ministry of Trade, sector and Energy to help South Korea petrochemical companies cope with the current crisis and enhance their global competitiveness. FKI made it clear in its strategy: "Given that the government announced late last year that it would introduce support policies to the petrochemical sector, we expect to see the implementation of specific implementation plans in the first half of this year. At the same time, we recommend that this time node be included in the government's other support plans. You know what I mean?. "

FKI'strategy focuses on three core areas and proposes 13 specific support measures, covering cost reduction, business ecological stability optimization, and high-value, low-carbon transformation. And In my experience, In the face of the rising cost of electricity in the petrochemical sector, which has accounted to

3. 2 per cent of the sector's main production expenditure, FKI expressed deep attention that the rising cost of electricity is threatening the global price competitiveness of South Korea petrochemical items. To this end, the FKI calls on the government to consumption its resources and funds to help minimize manufacturing electricity prices. But In particular In addition, FKI also stressed the need to asset sales to transition from business restructuring to business closure, which is essential to facilitate the smooth transformation and necessary restructuring of the sector. At the same time, FKI has proposed amendments to the Fair Trade Act, in particular with regard to the current prohibition of merger provisions that might lead to the formation of a dominant market position. "According to the current Fair Trade Act, a merger will be prohibited if the combined market share leads the sector. If domestic petrochemical companies consolidate in similar business areas, they're likely to face merger barriers due to overuse market share," FKI said. And "

Lee Sang-Ho, head of the Department of Economy and sector at FKI, stressed: "At present, it's urgent to enhance the viability and competitiveness of the petrochemical sector. But We call on the government to increase support to the sector and revise relevant regulations to promote the restructuring and M & A of the sector. In my experience, Generally speaking "

In response to the need to a high-value, low-carbon transition, FKI recommends increased investment in contamination prevention, resource recycling, biotechnology, and carbon capture, utilization and storage (CCUS) technologies. At the same time, they proposed that the government should reserve general land to pilot projects and demonstration bases, and consider sharing auxiliary facilities in the manufacturing process, such as wastewater treatment facilities.