Lotte Chemical and HD Hyundai Chemical have jointly filed for government approval of a restructuring plan that would fold Lotte’s spun-off DaeSan plant into HD Hyundai Chemical.

The move marks the first concrete restructuring proposal since petrochemical overhaul talks began in August.

Under the plan, the merged company will remain, while the new spin-off is dissolved, leaving Lotte and HD Hyundai Oilbank each holding fifty percent of the combined entity.

The merger aims to streamline excess naphtha-cracker capacity and create a unified production system within the DaeSan Industrial Complex.

Both firms plan to use the restructuring to accelerate a shift toward higher-value and cleaner chemical businesses.

The proposal will now undergo governmental review, with further industry consolidation expected by year-end.