[THE INVESTOR] In response to the government‘s push for active domestic investments and job creations, major chemical companies have vowed to expand large-scale investment projects totaling some 10 trillion won (US$8.8 billion).

According to the Ministry of Trade, Industry and Energy on Thursday, S-Oil, Lotte Chemical and Hanwha Total Petrochemical signed a memorandum of understanding with the provincial government to invest in the Daesan Petrochemical Complex.

The investment includes upgrading infrastructure and expanding R&D facilities at the Daesan Complex, which is located in South Chungcheong Province. The complex hosts some 50 chemical firms.

The industry officials met with Industry Minister Paik Un-gyu during a chemical industry meeting at the Jamsil Lotte World Tower on Thursday where the two sides discuss ways to expand the country‘s chemical development projects.

“Upgrading the Daesan Petrochemical Complex will contribute to creating jobs and expanding higher quality chemical products,” said Paik during the meeting. “The government intends to make efforts to improve infrastructure in the region.”

Company officials also stated they are working on various programs to formulate a win-win partnership with suppliers and vowed to continue to explore and expand new cooperation models.

“The industry must work hard to ensure that the excellent management performance of the chemical industry leads to the development of innovation,” Paik added.

In line with their investments into the Daesan Complex, the participants agreed on the need for environmental regulations. The companies, meanwhile, also requested the government help resolve several economic difficulties such as by gradually strengthening foreign import regulations to minimize heavy competition.

“We fully understand the difficulties voiced by the industry and will look for solutions through close consultation with related ministries,” said Paik. “We will use our bilateral and multilateral channels to deal with these issues and will actively promote our position.” 

By Julie Jackson/The Korea Herald (juliejackson@heraldcorp.com)