On June 15, the Ministry of Trade, Industry and Energy held the launch ceremony for the 'Chemical Industry Forum' at the Lotte Hotel in Seoul, initiating discussions on enhancing the competitiveness of the entire chemical ecosystem.
The forum was established to address the challenges faced by the chemical industry, exacerbated by increased oversupply from China, supply instability due to conflicts in the Middle East, and the accelerated global shift toward eco-friendliness.
The government plans to develop a 'Comprehensive Support Plan for the Chemical Industry Ecosystem' in the second half of this year, based on discussions from the forum and consultations with relevant ministries and local governments. This initiative aims to broaden the recent restructuring discussions in the petrochemical sector into a comprehensive policy for enhancing the competitiveness of the entire chemical industry.
The support plan will include measures for stabilizing supply chains, advancing industrial structures, and supporting regional economies and employment.
The forum will operate through three divisions: supply chain stabilization, ecosystem advancement, and regional economy and employment.
The supply chain stabilization division will discuss strategies to minimize disruptions in raw material and component supplies amid external risks such as instability in the Middle East.
The ecosystem advancement division will review policy tasks aimed at transitioning the industry from a focus on generic products to high value-added, eco-friendly, and digital-centric structures. The regional economy and employment division will address support measures for potential economic shocks and employment issues arising during the restructuring process.
Concerns over supply instability for key raw materials like crude oil and naphtha have intensified due to the prolonged conflict in the Middle East, highlighting the importance of supply chain stability. Industry voices are calling for comprehensive support measures to restore competitiveness amid declining profitability from China's large-scale production capacity expansions and increasing uncertainties in raw material procurement.
Jung Chan-hwa, co-chair of the Chemical Industry Forum, stated, "To respond to global oversupply and market changes, we must cultivate high value-added and eco-friendly sectors based on a stable supply chain," adding, "We will ensure that the forum's discussions lead to actual policy and industrial changes."
Yang Gi-wook, head of the Ministry's Resource Security Office, remarked, "The recent raw material supply instability triggered by the Middle East conflict has reaffirmed the importance of supply chains," and emphasized, "We will work together with the private sector to develop effective policy alternatives to enhance the competitiveness of the chemical industry."
* This article has been translated by AI.
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