South Korea’s Industry Ministry said it will present a package of support measures and a restructuring blueprint for the country’s petrochemical producers later this month. Industry Minister Kim Jung-kwan described the sector’s situation as “grave,” citing collapsing margins, excess capacity and weaker exports. South Korea is one of the world’s biggest importers of naphtha feedstock, and its refineries anchor regional oil product flows. However, a wave of new plants in China and the Middle East has driven down prices for key products such as ethylene and polyethylene, eroding profitability at Korean firms and raising concerns about their financial health. The pressure is set to intensify. A Sinopec executive said China will add 40 million metric tons of ethylene capacity between 2025 and 2028, lifting its total to about 100 million tons. China’s 15th Five-Year Plan projects traditional petrochemical demand growth of 3.5% a year, roughly half the pace seen in the prior plan, while industry losses in the first half rose 8.3%, according to the China Petroleum and Chemical Industry Federation. Seoul’s forthcoming plan is expected to encourage consolidation and efficiency upgrades while offering targeted financial assistance. The ministry is also weighing measures to mitigate job losses in industrial hubs and to maintain the country’s competitiveness in high-value specialty chemicals.