Amid Petrochemical Slump, No One Wants the President's Job... Korea Chemical Industry Association Remains Leaderless for Six Months

Mounting Issues for Korea Chemical Industry Association
Major Company CEOs Burdened by Poor Performance
No Progress in Appointment Talks Since March

The petrochemical industry has been unable to appoint the head of its representative organization due to the prolonged recession. As major companies are reluctant to take on the presidency of the Korea Chemical Industry Association because of poor business performance and frequent changes in chief executive officers (CEOs), the position has remained vacant for six months. There are concerns that, with pressing issues such as restructuring and supply glut, the industry could lose its central point of coordination for communicating its stance to the government and the National Assembly.

Office of the Korea Chemical Industry Association. Korea Chemical Industry Association

According to the petrochemical industry on August 25, the Korea Chemical Industry Association has been discussing plans to appoint a new president since March, but no significant progress has been made. While major member companies such as LG Chem, Lotte Chemical, Hanwha Solutions, and SK Chemicals have raised the need to appoint a successor, it appears that no specific schedule or discussion on candidates has been set.

Previously, Shin Hakcheol, then Vice Chairman of LG Chem, served as president of the association, but stepped down from the association presidency in March after retiring as CEO of LG Chem.

In the past, when the petrochemical sector was booming, it was customary for major company CEOs to take turns as association president. However, with worsening market conditions, heavier performance burdens, shorter CEO tenures, and more frequent executive reshuffles, the atmosphere around the presidency has changed.

Although the presidency is an honorary, non-executive position, it requires representing the industry and communicating the petrochemical sector's position to the government, the National Assembly, and relevant organizations, as well as responding to key pending issues. In particular, as sensitive matters such as industry restructuring and oversupply have accumulated recently, CEOs of companies are shouldering a heavier burden than in the past when taking on the presidency.

An industry official said, "In the past, when the market was favorable and company performance was stable, the burden on CEOs of major companies to take on the presidency was relatively light. Recently, however, with the corporate management situation deteriorating and CEO appointments changing frequently, there is a sense of reluctance among CEOs to also take on the presidency."

In particular, the selection process has been delayed further because, just as the discussion on appointing the president was about to accelerate, a war broke out in the Middle East, shifting the industry's focus to urgent issues such as securing naphtha supplies and stabilizing raw material prices.

The association once pursued a policy where member companies would take turns holding the presidency, similar to the system at the Japan Chemical Industry Association. However, this rotation was effectively halted when it was SK Geocentric's turn to take the role and then-CEO Choi Anseob declined the position.

Afterward, Shin's additional term prevented a vacancy, but since his retirement, a successor has not been found. An association official said, "No specific timeline or plan has been set for the appointment of a new president."

This content was produced with the assistance of AI translation services.