{
  "id": 2148165,
  "title": "Daesan Petrochemical Restructuring Wins Conditional Approval",
  "url": "https://urgent.news/2026/08/20/daesan-petrochemical-restructuring-wins-conditional-approval",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-20T14:08:50.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=275210"
  },
  "original_language": "en",
  "account": "The Daesan Petrochemical reorganization, the first of its kind in the domestic petrochemical industry due to oversupply from China, has reached its final stages after conditional approval from the Fair Trade Commission. This consolidation of the Naphtha Cracking Center (NCC) addresses the dual concerns of industrial reorganization and maintaining market competition, as mandated by the government. The Fair Trade Commission approved the business combination of Lotte Chemical, Lotte Daesan Petrochemical, HD Hyundai Oilbank, and HD Hyundai Chemical on August 20, but imposed conditions to prevent competition restriction in the LDPE (low-density polyethylene) and EVA (ethylene vinyl acetate) markets. The deal involves Lotte Chemical physically dividing the Daesan plant in June to create Lotte Daesan Petrochemical, then merging it into HD Hyundai Chemical. Following this, Lotte Chemical will acquire additional shares in HD Hyundai Chemical, changing the existing 60-40% share structure to a 50-50% joint management system. The integrated corporation is set to launch in September. The reorganization began in earnest in November of the previous year when both companies sought a voluntary preliminary review from the Fair Trade Commission. The main objective is to resolve overlapping facilities and oversupply by integrating the NCC and petrochemical production facilities of the two firms within the Daesan Industrial Complex. This is the first petrochemical business combination since the government mandated autonomous restructuring in the industry. Post-combination, the number of competitors in the LDPE and EVA markets will reduce from four to three, with the top three companies accounting for 82% and 95% of the market share by sales volume, respectively. Consequently, HD Hyundai Chemical, known for its competitive pricing, will exert pressure on existing operators. The Fair Trade Commission attached conditions to the approval, requiring the integrated corporation to control price and supply fluctuations, maintain supply, and prohibit information exchange for five years following integration. These conditions aim to protect domestic demand sources, particularly small and medium-sized enterprises, from supplier shortages. The Fair Trade Commission will closely monitor other petrochemical restructuring business combinations, such as Yeosu No. 1 and future Ulsan and Yeosu No. 2, to ensure that competition remains intact.",
  "summary": "The ‘Daesan No. 1’ business reorganization, which is the first restructuring case in the domestic petrochemical industry driven to a survival crisis by Chinese oversupply, has entered its final stages after receiving conditional approval from the Fair Trade Commission. The large-scale Naphtha Cracki",
  "key_points": [
    "Daesan Petrochemical reorganization receives conditional approval from Fair Trade Commission",
    "Lotte Chemical and HD Hyundai Chemical merge, changing share structure to 50-50%",
    "Integration aims to resolve oversupply and overlapping facilities in LDPE and EVA markets"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}