KOREA (SOUTH): SK Incheon's paraxylene plant in danger of closure

The city government of Incheon recommended to the district office of Seo-gu within its jurisdiction that the latter stop the building project led by SK Incheon Petrochem on the grounds that the company has violated the city's building code in numerous instances.

Given the construction has been 80 % complete, SK Incheon must incur huge losses. In addition, the company may have to cough up 300 billion won in taxes that it had been exempted when it was split from the parent company two years ago.

The Seo-gu district office will announce the final decision on whether to close the paraxylene plant SK Incheon Petrochem is currently building by 30 December 2013.

Earlier, the city government had found several instances of malfeasance, after an audit on the district office, including building of structures unapproved by the city authorities and under-reporting of manufacturing facility floor area.

Source: "The Korea Economic Daily", Seoul; 16 Dec 2013(Syed Rashid Ali, Karachi, Pakistan)