S-Oil CEO asks Yoon to increase tax incentives for firms making long-term investments

President Yoon Suk Yeol shakes hands with S-Oil CEO Anwar Al-Hejazi during a luncheon with representatives of foreign-invested companies at the Korea Chamber of Commerce and Industry building in Seoul, Wednesday. Joint Press Corps

S-Oil CEO Anwar Al-Hejazi received a positive response from President Yoon Suk Yeol to his company’s request to deduct taxes for a longer period of time for firms that make long-term investments with large-scale projects, Saudi Arabia’s Aramco-owned refiner said, Thursday.

The proposal was made during a luncheon between Yoon and foreign business leaders in Korea, Wednesday. The S-Oil CEO was invited to the event as the head of the company representing foreign-invested chemical firms.

During the meeting, he told the president about the progress of the Shaheen Project, a 9.3 trillion won ($7 billion) project to build a mega-sized petrochemical complex in Ulsan. Yoon attended the groundbreaking ceremony for the project in March 2023.

“Given that this is a long, mega-scale project that we are undertaking in the midst of so many challenges and uncertainties in the business environment and the global economy, I hope to see continuity in the government’s incentive support and timely approvals and permits to ensure that we complete the project safely and on time,” the S-Oil CEO said. “Once completed, I am sure we will reciprocate the government’s support by becoming a bigger contributor to Korea’s energy security, exports and economic partnership between Saudi Arabia and Korea.”

The presidential office said that Yoon told foreign businesspeople that the government would abolish regulations and increase incentives to create the world’s leading investment environment aligned with global standards.

During a meeting earlier this month between the industry minister and representatives of Korea's largest manufacturing companies, S-Oil President Ryu Yul also received a positive response from the government to the company’s request for continuous incentives for investments.