Korea Development Bank to Provide 450 Billion Won in Financial Support for Yeosu Petrochemical Restructuring

Repayment of 4.4 Trillion Won in Loans Deferred

Korea Development Bank will defer the repayment of approximately 4.4 trillion won in existing syndicated loans to Yeocheon NCC and Lotte Chemical as part of the restructuring of the Yeosu petrochemical industry, while also providing up to 450 billion won in new funding.

On July 22, Korea Development Bank announced that it had held a meeting of creditor financial institutions to discuss financial support measures necessary for implementing the "Yeosu 1st Business Restructuring Plan." Previously, the Ministry of Trade, Industry and Energy approved the final version of the restructuring plan jointly prepared by four companies: Yeocheon NCC, Lotte Chemical, Hanwha Solutions, and DL Chemical. The restructuring plan calls for the shutdown of Yeocheon NCC Plant 2 following the already halted Plant 3, and the consolidation of the remaining Plant 1 with Lotte Chemical's Yeosu plant to establish an integrated entity.

At the meeting, Korea Development Bank and the creditor financial institutions discussed financial support options linked to the government’s support package and detailed implementation schedules. First, repayment of existing syndicated loans to Yeocheon NCC and Lotte Chemical will be deferred until the end of 2029, which covers approximately 2.2 trillion won each for Yeocheon NCC and Lotte Chemical, totaling around 4.4 trillion won. In addition, up to 450 billion won in new funding will be injected to support facility investments needed for the business restructure. Korea Development Bank plans to provide up to 300 billion won to Yeocheon NCC and up to 150 billion won to Lotte Chemical.

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