Seosan, Chungnam Designated as "Proactive Industrial Crisis Response Area" Amid Petrochemical Industry Crisis

Daesan Petrochemical Complex in Seosan Designated as a "Proactive Industrial Crisis Response Area"
Comprehensive Support Measures for Two Years Including Emergency Funds, Investment Subsidies, and Local Grants
Aiming for Local Economic Recovery and Industrial Transformation

On the 28th, Ahn Ho, Director of Industrial Economy at Chungnam Province, held a press conference and announced that the Ministry of Trade, Industry and Energy has designated Seosan City as a proactive response area for industrial crisis. / Chungnam Province

The Daesan Petrochemical Complex in Seosan, Chungnam Province, has been designated by the government as a "proactive industrial crisis response area."

Institutional support to revive the petrochemical industry, which has been hit by oversupply, and to overcome the downturn in the local economy will now be fully implemented.

On the 28th, Ahn Ho, Director of Industrial Economy at Chungnam Province, held a press conference at the provincial government press center and announced, "The Ministry of Trade, Industry and Energy has designated Seosan City as a proactive industrial crisis response area."

This designation is the result of a coordinated response following Governor Kim Taeheum's direct commitment at an economic situation review meeting held at Hyundai Oilbank earlier this year, with the province, Seosan City, Chungnam Technopark, local businesses, and the Chamber of Commerce forming a consultative body.

The Daesan Petrochemical Complex in Seosan is considered one of Korea's three major petrochemical complexes, along with Yeosu and Ulsan. However, due to the recent global oversupply, the plant's operating rate dropped to 68% in the second quarter.

National tax payments plummeted from 1.4951 trillion won in 2022 to 116 billion won last year, and local corporate income tax also fell sharply from 42.9 billion won to 3.2 billion won over the same period, causing a severe blow to the local economy.

With Seosan City designated as a proactive industrial crisis response area, support measures will be implemented over the next two years, including emergency management stabilization funds, increased investment subsidies (up to 25% for small and medium-sized enterprises), loan maturity extensions, and deferment of principal repayments.

An additional allocation of local government grants totaling 60 billion won is also expected. Separately, the province and Seosan City plan to secure government funding for 26 projects totaling 2.6 trillion won.

The province is accelerating not only efforts to overcome the industrial crisis but also the transition to new industries. Seosan has established a Sustainable Aviation Fuel (SAF) comprehensive demonstration center, and a carbon-neutral demonstration support center is also under construction.

Through the designation of a national industrial complex and the establishment of an ethane terminal, the province aims to transition to high value-added petrochemical industries.

Governor Kim Taeheum stated, "This designation will be a turning point for the recovery of the petrochemical industry ecosystem and the leap toward a future-oriented industrial structure," adding, "We will do our utmost to revitalize the local economy and foster new industries."

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