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View of Yeosu Plant 2 of Yeocheon NCC. (Photo courtesy of Yeocheon NCC) |
[Alpha Biz= Paul Lee] Seoul, August 28, 2025 — Korea Development Bank (KDB) has signaled it may suspend trade financing for Yeocheon NCC unless the company’s major shareholders take stronger responsibility for stabilizing the troubled petrochemical joint venture. Industry sources say the state-run lender has been raising pressure step by step, citing specific credit transactions.
According to financial industry officials on August 28, KDB recently conveyed to Yeocheon NCC’s joint shareholders — DL Chemical and Hanwha Solutions — that “if capital support is not provided in a timely manner, new trade finance contracts may be difficult to secure.”
Yeocheon NCC has long relied on around KRW 100 billion in trade finance from KDB, structured as renewable six-month credit lines. Each time loans matured, the company renewed agreements to maintain a stable credit line. A suspension of such financing would worsen liquidity risks.
Earlier this month, Yeocheon NCC narrowly avoided default when its shareholders extended an emergency KRW 300 billion loan. Market observers warn that unless further self-rescue measures are implemented, KDB could at any time pull its trade finance support, tightening financial pressure on the firm.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
