Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, stated on July 22, "We will support the successful restructuring of Yeocheon NCC and Lotte Chemical with a package exceeding 700 billion won."
Koo made the remarks during a meeting at the Government Seoul Building, which was held to discuss the Emergency Economic Headquarters and the Economic and Industrial Competitiveness Enhancement Ministerial Meeting. The meeting addressed the second restructuring plan for the petrochemical industry, known as the 'Yeosu Project 1.'
On July 20, the restructuring plan for the merger of Yeocheon NCC and Lotte Chemical at the Yeosu chemical complex was approved. The government and creditors plan to back the restructuring with a support package of 700 billion won.
Koo noted, "We will provide 450 billion won in financial support for high-value-added conversion and an additional 200 billion won in loan guarantees for imported funds. We will also expand the corporate tax loss carryforward limit and reduce acquisition tax by up to 100%, as well as extend the deferral of capital gains tax upon asset sales." He added that special measures would be applied for the succession of permits and simplification of procedures during corporate splits and mergers, and that the requirements for employment retention subsidies would be relaxed.
The meeting also discussed plans for the establishment and operation of an electronic payment system for construction projects. The existing system operates with the contractor paying the supplier, who then pays the subcontractor, and the subcontractor paying the workers.
Koo stated, "In line with the revision of the Basic Construction Industry Act, we will reform the system to allow contractors to pay subcontractors and workers directly, thereby fundamentally preventing wage arrears. To enhance management and operational efficiency, we will transfer the system's operational authority from the Public Procurement Service to the Ministry of Land, Infrastructure and Transport."
Finally, the meeting addressed the formation and operation of a research support team to ensure the successful implementation of the 'three mega projects.' The government plans to establish a dedicated research support team in collaboration with national research institutions to develop government policy and support corporate activities.
Koo emphasized, "We will form project-specific technical support task forces that reflect the expertise of research institutions and develop growth strategies linked to various economic and social sectors."
* This article has been translated by AI.
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