What specific competition concerns did South Korea's FTC identify in the Lotte Chemical–HD Hyundai Daesan merger?

The FTC identified that the merger would substantially restrict competition in South Korea’s domestic low-density polyethylene (LDPE) and ethylene vinyl acetate (EVA) markets, citing both coordinated effects—where reduced competition could facilitate aligned pricing or commercial behavior among suppliers—and unilateral effects—where the merged entity could exercise greater market power because rivals may not be able to supply sufficient substitute volumes in a timely manner.

What is the 'Daesan No 1' project, and how does it restructure ownership among the involved companies?

The 'Daesan No 1' project is a petrochemical business restructuring involving HD Hyundai Chemical absorbing and merging with Lotte Daesan Petrochemical—a new company formed via spin-off of Lotte Chemical’s Daesan complex—while Lotte Chemical acquires additional shares in HD Hyundai Chemical, resulting in Lotte Chemical and HD Hyundai Oilbank each holding 50% stakes and becoming joint largest shareholders of HD Hyundai Chemical.

South Korea FTC Reviews Lotte Chemical-HD Hyundai Daesan Merger Amid Competition Concerns

Jul 15, 2026

South Korea's FTC launched a formal review of the Lotte Chemical-HD Hyundai Daesan merger citing competition risks in LDPE and EVA markets. Regulators recommend corrective measures after finding the transaction could substantially restrict domestic competition.

icis

2026-07-15

South Korea FTC Reviews Lotte Chemical-HD Hyundai Daesan Merger Amid Competition Concerns

2026-08-27

Lotte Chemical to Permanently Shut Daesan Cracker in First Week of September

South Korea FTC Reviews Lotte Chemical-HD Hyundai Daesan Merger Amid Competition Concerns

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