[Korea Issues Summary] Petrochemical Restructuring, Classroom Phone Ban, FAST Market Growth, CEO Generational Shift, Direct Flights to Greece (2025.08.28)

1. Petrochemical Restructuring: Planned Reduction of 2.7–3.7 Million Tons of Naphtha Capacity
The Korean government has announced a large-scale restructuring plan to address oversupply and weakening global demand in the petrochemical sector. According to the Ministry of Trade, Industry and Energy, production capacity from naphtha crackers will be cut by 2.7–3.7 million tons annually over the next 18 months, representing roughly 25% of total capacity. Major companies such as SK Innovation, Yeochun NCC, Lotte Chemical, and HD Hyundai are expected to shut down or merge smaller standalone facilities. Industry analysts also point to the looming impact of the massive S-Oil–Aramco Shaheen plant, slated to start operations in 2026, which will intensify competition. Experts emphasize that the restructuring should not merely be a contraction but a shift toward eco-friendly, high-value-added products that enhance long-term competitiveness. While the short-term consequences may include job losses and regional economic strain, the adjustment is seen as a necessary step toward profitability and sustainability.

2. Korea to Ban Mobile Phones and Digital Devices in Classrooms
The Ministry of Education announced that beginning March 2026, mobile phones and digital devices will be banned in all Korean elementary, middle, and high school classrooms. Surveys indicate that 37% of students report disrupted concentration due to smartphones, while 22% experience anxiety when separated from their devices, underscoring near-addictive dependency levels. The government argues the measure is essential to improve learning focus and protect students’ mental health. Exceptions will be allowed for students with disabilities and for educational devices used under teacher supervision. Youth groups and some parents’ associations have raised concerns about freedom of expression and potential inequality in digital literacy, but officials counter that device use will remain unrestricted outside of classrooms. Experts note that while the ban could yield short-term benefits in focus and discipline, it may limit opportunities for students to build digital self-management skills over the long term.

3. Korea’s FAST (Free Ad-Supported Streaming TV) Market Set to Double by 2030
As subscription-based OTT platforms saturate globally, the FAST model is emerging as a new growth driver. According to Omdia, Korea’s FAST market is projected to grow from $23 million in 2024 to $48 million by 2030. Platforms such as Samsung TV Plus, LG Channels, and Wavve are leading the expansion, with the global popularity of K-dramas and K-pop boosting advertising revenues. The FAST model appeals to consumers by offering free content supported by ads, showing resilience even during economic downturns. Industry observers predict that the growth of FAST will accelerate the globalization of Korean content, particularly across Asia and North America. However, issues such as excessive ad loads and lack of transparency in revenue distribution remain challenges for the sector to address.

4. Average Age of Major Korean CEOs Falls Below 60 for the First Time
For the first time, the average age of CEOs at Korea’s largest conglomerates has fallen below 60, signaling a generational shift in leadership. According to data from the Korea Institute for Industrial Economics and Trade, the average age across the top 10 business groups is now 59.7, down from 62.4 five years ago. Younger CEOs in their 50s are rising within companies such as Samsung, Hyundai Motor Group, and LG, reflecting the demand for agile decision-making in the era of rapid technological and market shifts. The rise of younger leaders is especially notable in IT, bio, secondary batteries, and AI industries. While this generational turnover raises expectations for innovation and organizational transformation, some analysts caution that relative inexperience could pose risks in global crisis management. Experts stress that companies must balance generational renewal with structured succession planning and leadership development programs.

5. Korea and Greece Explore Direct Flights to Boost Tourism
During his visit to Seoul, the Greek Minister of Tourism met with executives from Korean Air, Hanjin Travel, and Lotte Tour to discuss the possibility of launching direct flight routes between Korea and Greece. Currently, Korean travelers must transit through major European hubs, adding time and cost to their journeys. A direct route could significantly increase tourist exchanges between the two countries while strengthening Korean airlines’ competitiveness in the European market. The Greek government has expressed willingness to start with seasonal direct flights to align with peak demand periods. Industry insiders believe that if implemented, Greece could emerge as one of the top European destinations for Koreans, alongside Spain and Italy.

✍️ Editor’s Note

“Today’s announcements on restructuring, regulation, market forecasts, leadership shifts, and international cooperation highlight a transformative phase for Korea’s economy. Investors should carefully weigh both the opportunities and risks emerging from these changes.”

Today’s issues, ranging from petrochemical restructuring and classroom device bans to the expansion of the FAST streaming market, generational leadership shifts among CEOs, and prospects for direct flights between Korea and Greece, collectively underscore Korea’s ongoing pursuit of both competitiveness and innovation. These developments reveal not only opportunities for growth but also significant policy and social trade-offs. Petrochemical restructuring is inevitable, but cushioning labor market shocks will be critical. Classroom bans may improve concentration but will continue to spark debate over rights and digital literacy. The growth of FAST streaming and younger CEOs offers promise but also brings challenges in profitability and crisis management. Direct flight negotiations illustrate Korea’s expanding global connectivity but remain subject to volatility in the aviation and tourism sectors. Altogether, today’s developments suggest Korea is navigating a delicate balance between securing economic strength and fostering social consensus. How do you think Korea should chart its path forward in this evolving landscape?