FSC Vice Chairman Kwon Daeyoung: "We Will Make Petrochemical Industry Restructuring a Success Story"

Kwon Daeyoung, Vice Chairman of the Financial Services Commission, expressed his determination to "create a successful case" in the restructuring of the petrochemical industry.

On the morning of August 21, after the 'Meeting for Petrochemical Industry Restructuring' held at the Korea Federation of Banks in Jung-gu, Seoul, Vice Chairman Kwon told reporters, "It is very meaningful to restructure the entire industry," emphasizing his commitment.

He stated that financial institutions have pledged solid financial support, saying, "If petrochemical companies make self-sacrificing efforts as a prerequisite, financial institutions are willing to fully cooperate with this industry restructuring, which is being attempted for the first time."

He added, "Looking at the history of restructuring, there have been many cases targeting individual companies, but financial institutions say that restructuring the entire industry is very meaningful. We are listening to various opinions and aiming to create a successful case."

Kwon Daeyoung, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the 'Petrochemical Industry Restructuring Finance Sector Meeting' held on August 21 at the Korea Federation of Banks in Jung-gu, Seoul. 2025.08.21 Photo by Yoon Dongjoo

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However, he made it clear that financial support can only be provided if petrochemical companies make self-rescue efforts as a prerequisite. When asked about the establishment of joint ventures by petrochemical companies, Vice Chairman Kwon replied, "Companies will submit their restructuring plans, and through special programs such as those offered by Industrial Bank of Korea, we will ensure smooth funding. Korea Development Bank has also made extensive preparations to support the transition to specialty (high value-added) products." He further emphasized, "But companies must first demonstrate their determination before we can provide support." Earlier that morning, in an unscheduled remark before the meeting began, he had criticized petrochemical companies, saying, "It feels like we are trying to save someone drowning, but they are asking us to hand over the support package first."

Meanwhile, during the meeting, participants shared the current status of the petrochemical industry and discussed the direction of business restructuring and the principles of financial support. Financial authorities presented three basic principles for restructuring: thorough self-rescue efforts, pain-sharing, and swift implementation. They stressed that petrochemical companies must demonstrate 'action' based on these principles, including self-sacrificing efforts and concrete, reasonable restructuring plans.

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