The country aims to spur the industry to shift its focus to value-added specialty chemicals from basic chemicals by providing incentives such as tax benefits and loans with low interest rates.“The government is not considering forceful restructuring led by authorities,” said a senior finance ministry official.“The government will encourage companies to seek voluntary reorganization to improve the industry’s competitiveness.”STRUGGLINGThe move came as local petrochemical manufacturers have been struggling amid the cut-throat competition with Chinese rivals, a supply glut and weak demand.
South Korea plans to restructure the struggling domestic petrochemical industry amid the intensifying competition with Chinese rivals and oversupply by encouraging companies to focus on high-end products and voluntarily seek mergers and acquisitions, government sources said on Thursday.
The move is expected to spur the industry to seek mergers or establish joint ventures, industry sources said.“If the government exempts various taxes such as capital gain taxes after M&A deals or provides subsidies, that will speed up the restructuring,” said one of the sources.
The story "S.Korea to restructure ailing petrochemical industry" has 622 words across 31 sentences, which will take approximately 3 - 6 minutes for the average person to read.
Which news outlet covered this story?
The story "S.Korea to restructure ailing petrochemical industry" was covered 8 hours ago by Korea Economic Daily, a news publisher based in South Korea.
How trustworthy is 'Korea Economic Daily' news outlet?
Korea Economic Daily is a fully independent (privately-owned) news outlet established in 1964 that covers mostly economy news.
The outlet is headquartered in South Korea and publishes an average of 15 news stories per day.
It's most recent story was published 10 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
