Prolonged Vacancy at Korea Chemical Industry Association Presidency... No Control Tower for 'Crisis-Hit Petrochemical Sector'

Double Hardship of Market Downturn and Restructuring
No Successor After Previous President's Term Ended
Leadership Vacuum Persists Despite Rotational System

As the petrochemical industry faces an unprecedented downturn and intense restructuring—a 'double hardship'—the leadership vacancy at the Korea Chemical Industry Association, which represents the industry, has been prolonged. Although the need for a control tower to help overcome the crisis is more urgent than ever, the leadership crisis continues as senior executives of major member companies are preoccupied with deteriorating performance and internal issues, causing them to decline the association presidency.

Screenshot of the Korea Chemical Industry Association website

According to the petrochemical industry on March 19, interest from the government, National Assembly, and media has intensified due to ongoing restructuring discussions and worsening market conditions, leading to an expanded role for the association. However, the position of association president remains unfilled. While the Korea Chemical Industry Association traditionally rotates its presidency among the heads of member companies, the appointment of the next president has been delayed.

Previously, Shin Hakcheol, Vice Chairman of LG Chem, served as president of the association, but since his term ended in February this year, the position has remained vacant with no successor yet determined.

Although a rotational system among member companies for the presidency has been discussed and introduced in recent years, the worsening business environment has forced each company to focus on management responses, leading to a series of refusals to take on the association presidency.

Industry insiders point to the honorary nature of the presidency as a key reason for this trend. While the position offers little tangible reward, it carries significant burdens in terms of external representation and coordinating interests. In the current difficult business environment, it has become even harder for CEOs to readily accept the role.

In reality, the petrochemical industry is facing a complex crisis, including a decline in the ethylene spread, lower operating rates, and ongoing restructuring discussions. Conflicting interests among companies have made mediation and coordination at the association level increasingly difficult.

This leadership vacuum is also affecting the association’s operational structure. As industry issues mount—including the need to respond to government, coordinate member company opinions, and handle media relations—the association’s working-level staff are taking the lead in addressing these challenges.

An industry official said, "The more challenging the market conditions, the more important the association’s role becomes, but right now, companies must focus on survival. The normalization of the association presidency will likely have to wait until the market recovers."

An association representative added, "There is no specific schedule or plan yet regarding the presidential appointment."

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