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여수산단 위기: NCC 감산이 지역경제에 미치는 영향은?

Daniel Kim Views  

Yeosu Industrial Complex Workers Hold Press Conference at the National Assembly
Call for Halt to Additional Ethylene Production Cuts
Form a Multilateral Consultative Body to Devise Restructuring Alternatives

   Yeocheon NCCYeocheon NCC site.
  Yeocheon NCCYeocheon NCC site.

Workers in Yeosu have mounted a sharp protest against the government’s plan to impose further production cuts at NCCs (naphtha crackers) as part of a broader petrochemical industry restructuring. Labor leaders warned that unilateral reductions risk triggering mass layoffs and collapsing the local economy, and they called for an immediate halt.

On the 18th, the Joint Response Committee of labor units for the Yeosu National Industrial Complex held a press briefing in the National Assembly and said unilateral additional NCC cuts in Yeosu would lead to mass dismissals and a collapse of the regional economy. The committee urged the government to stop unilateral cuts at once and to establish a multilateral consultative body to develop alternative measures.

The event brought together both major union federations, including the Jeonnam branch of the Korean Confederation of Trade Unions (KCTU), the Jeollanam-do branch of the Federation of Korean Trade Unions (FKTU), and the Yeosu Industrial Complex Labor Union Council.

Speakers said the government’s restructuring disproportionately burdens certain regions. Of the government’s stated reduction target of 2.7–3.7 million metric tons, 3.43 million metric tons have already been implemented, with Yeosu accounting for about 1.67 million metric tons—roughly 49% of that total. The government is also asking Yeocheon NCC and Lotte Chemical to accept an additional 0.9–1.1 million metric tons, which would push Yeosu’s share of national cuts above 60%.

The committee criticized the imbalance, noting that while Ulsan is pursuing the world’s largest expansion projects, Yeosu is bearing the nation’s largest reductions—“the gains from restructuring go to Ulsan, while the pain is concentrated in Yeosu.”

They also warned that cuts at NCC facilities are not an issue confined to individual firms but could ripple across the entire industry. Basic feedstocks such as ethylene and propylene produced at Yeocheon NCC supply many companies—including Hanwha Solutions, DL Chemical, and Kumho Petrochemical—so sustained reductions could trigger cascading effects throughout downstream sectors.

The committee said additional NCC cuts would likely force restructuring among regular employees, lead to mass layoffs of in-house subcontractors, and inflict ripple damage on plant and logistics sectors, with harms that could grow like a snowball.

Employment in the Yeosu National Industrial Complex is already falling. Labor groups reported that as of the second quarter last year, employment in the Yeosu complex declined about 30% year‑on‑year, a drop of roughly 7,000 jobs.

Critics also argue that workers and local communities were excluded from the restructuring process. The committee said labor representatives were shut out while the government and companies negotiated cut volumes behind closed doors, and that institutional safeguards to protect jobs and the local economy are inadequate. It demanded an immediate halt to further cuts; designation of Yeosu as an employment crisis area; formation of a four‑party consultative body including the central government, local authorities, companies, and labor; measures to ensure regional fairness; and reforms to relevant laws and institutions.

The committee emphasized that it is not opposing restructuring itself but rejects a process that excludes workers and the local community. It said it stands ready to negotiate with the government at any time and called for immediate talks.

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Daniel Kim
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