DL Group will inject 200 billion won or around 143 million U.S. dollars into Yeochun NCC, one of the nation's leading naphtha-cracking facilities, to avert bankruptcy as the petrochemical sector faces worsening conditions.

According to DL Group's holding company, DL Holdings, and subsidiary DL Chemical, a motion passed their respective emergency board meeting on Monday to provide the additional funds to Yeochun NCC.

The plan involves raising capital through DL Chemical issuing 200 billion won in new shares, with the holding company purchasing 823-thousand-86 shares worth around 177-point-eight billion won.
 
Yeochun NCC is a joint venture co-founded by DL Group and Hanwha Group in 1999 with DL Chemical and Hanwha Solutions each holding a 50-percent stake in the company.

Although the company ranks third in the country in terms of ethylene production capacity, it has posted weak performance since the 2020s, largely due to oversupply from China.

Yeochun NCC has recently shut down one of its plants in Yeosu, South Jeolla Province, and had faced a potential default unless it resolves a liquidity squeeze valued at 310 billion won by August 21.