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SEOUL, May 7 (Yonhap) -- Creditors of Yeochun NCC, a major producer of ethylene products in the country, decided to raise the upper limit of the company's letter of credit (L/C) to US$300 million, to help secure naphtha supplies, the financial regulator said Thursday.
According to the Financial Services Commission (FSC), Yeochun NCC has asked its main creditor Korea Development Bank last month to raise its L/C.
The regulator also said the Korea Trade Insurance Corp. will provide $50 million worth of import insurance.
Late last month, the industry ministry said the country is expected to secure up to 90 percent of pre-Iran-war naphtha supplies for May.
The country has been striving to secure naphtha, a key industrial feedstock used by the petrochemical and various other industries, by finding alternative supplies.
In April, the government said it will inject some 670 billion won (US$457 million) to support up to 50 percent of the difference between pre-war prices and increased import prices of naphtha for the April-June period in a bid to stabilize supplies of the key material.
The country has also secured 2.1 million tons of naphtha by the end of this year from four Middle Eastern nations, including Oman and Saudi Arabia. The amount is equivalent to about a month's supply based on last year's demand.
A naphtha cracking facility at Yeochun NCC in Yeosu, about 310 kilometers south of Seoul, is shown in this photo taken on April 1, 2026. (Yonhap)
sam@yna.co.kr
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