The domestic chemical industry has responded to the government‘s push toward active domestic investments and job creation demands as major chemical companies have vowed to expand large-scale investment projects totaling some 10 trillion won ($8.8 billion), the government said Thursday.

According to the Ministry of Trade, Industry and Energy, 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 infrastructures and expanding R&D facilities at the Daesan Complex, which is located in South Chungcheong Province. The complex hosts some 50 chemical firms. 

Major 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.”

Chemical industry 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 exchange for their investments into the Daesan Complex, chemical industry leaders agreed to introduce environmental regulations, however, requested the government help resolve certain economic difficulties 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 (juliejackson@heraldcorp.com)