Core Insights - The South Korean petrochemical industry is at a critical restructuring phase due to prolonged economic downturns and overcapacity pressures [1] Industry Overview - The share of common products such as polyethylene (PE) and polypropylene (PP) in the South Korean petrochemical industry is approximately 50%-60% [1] - Ethylene production capacity in South Korea has expanded from 5.89 million tons in 2003 to an expected 10.39 million tons in 2024, with projections of reaching 14.6 million tons by 2026 [1] - Domestic ethylene consumption is around 4.2 million tons, which has been declining in recent years, leading to increasing overcapacity risks [1] Challenges - The large scale of equipment and new investments in the petrochemical industry, along with high costs associated with production halts, pose significant obstacles to restructuring efforts [1]

Core Viewpoint - The South Korean government is set to hold a meeting on August 20 to discuss a restructuring plan for the petrochemical industry in response to global oversupply and declining competitiveness [1] Group 1: Meeting Details - The meeting will be chaired by the Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, with participation from relevant department heads [1] - This is the first "Ministerial Meeting on Strengthening Industrial Competitiveness" organized by the Lee Jae-myung administration [1] Group 2: Restructuring Plan - The restructuring plan is expected to include financial tax incentives for equipment consolidation and structural adjustment plans [1] - The focus will be on promoting voluntary business restructuring among companies [1] - Specific structural adjustment plans and production equipment operation plans for individual companies will be proposed during the meeting [1] Group 3: Context and Urgency - President Lee Jae-myung has previously indicated the need for a comprehensive strategy for restructuring the petrochemical industry due to weak global demand [1]