Park Sungmin of People Power Party Proposes "Special Act to Strengthen Petrochemical Industry Competitiveness"

Measures Include Electricity Rate Reductions and R&D Subsidies
Linked Amendment to Special Taxation Act Offers Tax Credits
"There Are Limits to Industry's Own Efforts... Financial Support Is Needed"

Park Sungmin, a member of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee and a representative of the People Power Party (Ulsan Jung-gu), has begun working on legislative measures to revive the petrochemical industry, which is currently experiencing a downturn. He emphasized that the government's response has been limited to "voluntary consolidation by the private sector" and stressed the need for legislative discussions at the National Assembly level.

On August 26, Assemblyman Park sponsored the "Special Act on Strengthening the Competitiveness of the Petrochemical Industry" and an amendment to the "Restriction of Special Taxation Act." The special act provides a comprehensive legal basis for the government to support the industry, including subsidies for research and development and facility investment, reductions in electricity rates, special exemptions from environmental regulations and accounting standards, easing of regulations on joint activities and business combinations under the Fair Trade Act, training of specialized personnel, worker protection, mitigation of impacts on the regional economy, and short-term liquidity support during business restructuring.

Park Sungmin, a member of the People Power Party, is speaking at a meeting of petrochemical companies based in Ulsan held under the theme "The Petrochemical Industry in Crisis, Finding a Breakthrough" at the FKI Tower in Yeouido, Seoul on August 19, 2025. Photo by Jo Yongjun

The linked amendment to the Restriction of Special Taxation Act introduces tax benefits to help companies undergoing restructuring manage their cash flow more stably. Up to 30% of tax credits will be provided for investments in new facilities during the restructuring process, and special tax provisions will apply to capital gains from the sale of redundant assets that inevitably arise during mergers. A new clause has also been introduced to reduce the tax burden on capital gains when disposing of outdated or inefficient facilities.

With Assemblyman Park's legislative proposals filling the gaps in the government's measures, discussions at the National Assembly to support the petrochemical industry are expected to accelerate, paving the way for structural improvement and industry reorganization. At a meeting of Ulsan-based petrochemical companies on August 19, he stated, "There are limits to what the industry can achieve on its own, so active institutional and financial support is necessary. Through the introduction of these bills, the National Assembly will do its part to help the petrochemical industry overcome the crisis and achieve a new leap forward."

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