Korea Development Bank said Wednesday it held a creditor meeting to support the restructuring of the Yeosu No. 1 plan following the government's final approval of the restructuring proposal. The meeting covered interest payment deferrals and new investment measures tied to the restructuring.
At the meeting, creditor financial institutions reviewed the economic rationale of the restructuring plan and the feasibility of the self-rescue measures. On that basis, they discussed financial support options including deferral of existing loan repayments and provision of new investment funds for the restructuring.
The creditors plan to work in coordination with the government's tailored support package, conducting ongoing reviews of restructuring progress and compliance with self-rescue commitments to ensure the Yeosu No. 1 restructuring proceeds as planned.
The Yeosu No. 1 restructuring is a reorganization effort led by key companies at the Yeosu National Industrial Complex, the country's largest petrochemical hub and a central pillar of the domestic petrochemical industry.
The participating companies agreed to jointly pursue the consolidation of production facilities, rationalization of naphtha cracking centers, vertical integration and a shift toward high-value-added products — moves aimed at addressing prolonged global oversupply and deteriorating profitability by aligning their differing interests through close consultation.
Korea Development Bank Chairman Park Sang-jin said the Yeosu National Industrial Complex is "the core production base of South Korea's petrochemical industry," and called on all stakeholders to offer continued cooperation and support "so that this restructuring can serve as a turning point for restoring the competitiveness of the Yeosu complex and driving a renewed leap forward for our petrochemical industry."
The Ministry of Trade, Industry and Energy approved Wednesday the final restructuring plans submitted by Yeocheon NCC, Lotte Chemical, Hanwha Solutions and DL Chemical. It is the second such approval, following Daesan No. 1 in February.
hyuk@heraldcorp.com
