The “Special Act on the Enhancement and Support of the Petrochemical Industry’s Competitiveness” (Petrochemical Special Act) has been passed in the National Assembly on the 2nd. This legislation provides a legal foundation for policy support, including special provisions under the Fair Trade Act, and is expected to be implemented as early as the first quarter of next year.
The government has assessed that the enactment of this special act establishes an institutional foundation for transforming the petrochemical industry, which faces challenges due to factors like global oversupply, into a high-value-added and eco-friendly structure to secure competitiveness.
In particular, the act reflects the substantial needs of companies pushing for business restructuring, allowing minimal necessary information exchange for the establishment and execution of business restructuring plans. It introduces special provisions to the “Fair Trade Act,” permitting joint actions of companies that meet certain requirements, subject to the approval of the Minister of Trade, Industry and Energy and consent from the Fair Trade Commission. Furthermore, for corporate mergers under the restructuring plan, the corporate merger review period will be shortened from the existing 30+90 days to 30+60 days.
Additionally, the act incorporates various support measures, such as tax, financial, R&D, workforce development, and employment stability assistance. It also includes provisions for special regulations on various permits and environmental regulations and special provisions for fuel supply to reduce costs, supporting companies’ restructuring and transition to high-value-added businesses.
Minister of Trade, Industry and Energy, Kim Jeong-kwan, stated, “During the discussion of the bill, there was active cooperation from related ministries such as the Ministry of Economy and Finance, Fair Trade Commission, Ministry of Climate, Financial Services Commission, and Ministry of Employment and Labor. The National Assembly also worked diligently for swift processing.” He added, “We expect the Petrochemical Special Act to significantly contribute to companies’ rapid business restructuring and transition to future high-value-added items. We will prepare and implement the subordinate legislation as quickly as possible so that companies currently undergoing restructuring can be subject to the law’s application.”
The Petrochemical Special Act will be promulgated after being delivered to the government and approved by the State Council. It is expected to be implemented by the first quarter of next year once the subordinate legislation is prepared.