What specific乙烯 (ethylene) production capacity will be shut down under the Yeosu Petrochemical Park restructuring plan, and which companies are involved?

The Yeosu Petrochemical Park restructuring plan approved by South Korea’s Ministry of Trade, Industry and Energy on July 22 involves the permanent shutdown of two ethylene units with a combined annual capacity of 1.39 million tons: YNCC’s idle 470,000-ton-per-year No. 3 unit and its 920,000-ton-per-year No. 2 unit. The participating companies are Yeochun NCC (a joint venture of DL Chemical and Hanwha Solutions), Lotte Chemical, and Hanwha Solutions — who together will form a new integrated operating entity, with each holding one-third equity stake after Lotte Chemical spins off its Yeosu naphtha cracker and polyolefin base material business into YNCC.

How much financial support is committed by both the companies and the South Korean government for the Yeosu restructuring, and what are the main uses of these funds?

The participating companies plan to invest approximately 8 trillion KRW in self-help measures and restructuring, including 5.45 trillion KRW raised via share issuance by Hanwha Solutions and DL Chemical to repay YNCC’s existing debt, and 2.532 trillion KRW allocated for pipeline and infrastructure upgrades as well as high-value-added product development. Separately, the South Korean government pledged over 7 trillion KRW in support, comprising more than 6.5 trillion KRW in financing assistance, plus tax reductions, regulatory optimization, employment aid, and R&D funding.

South Korea Approves Yeosu Petrochemical Park Restructuring Plan

Jul 24, 2026

The South Korean government approved a restructuring plan for the Yeosu Petrochemical Park involving Lotte Chemical, Hanwha Solutions, and DL Chemical, aiming to close ethylene units with a combined annual capacity of 1.39 million tons to address industry overcapacity.

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2026-07-22

South Korea Approves Petrochemical Restructuring at Yeosu Industrial Complex

2026-07-24

South Korea Approves Yeosu Petrochemical Park Restructuring Plan

South Korea Approves Yeosu Petrochemical Park Restructuring Plan

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