South Korea has approved a second restructuring plan for the Yeosu petrochemical complex as part of a government-led push to reform the industry amid a downturn and global oversupply. Lotte Chemical will spin off its naphtha cracking center and merge it with Yeochun NCC, unifying NCC facilities with DL Chemical and Hanwha Solutions to streamline production of commodity petrochemicals. The merged group will integrate DL Chemical’s polyethylene operations and Hanwha Solutions’ polyethylene and petroleum resin businesses to bolster long-term competitiveness and shift toward higher-value products. The plan includes a substantial financial package, with DL Chemical and Hanwha Solutions injecting about 800 billion won to repay debt and finance restructuring, while the government will provide more than 700 billion won in support through financial aid, tax incentives, and regulatory relief. In addition, the government is imposing measures to improve efficiency and address wage arrears, including tax incentives, relief on certain taxes, and reforms to allow direct payments to subcontractors to workers, alongside broader permit and employment retention subsidies adjustments. This restructuring follows the earlier Daesan plan and is part of a broader, ongoing government initiative to reform the petrochemical sector.