South Korea's major petrochemical producers moved back into profitability in the second quarter, but analysts say the rebound was driven largely by temporary factors and may reverse in the third quarter. LG Chem's petrochemical division posted operating profit of 427 billion won, Lotte Chemical recorded 110.1 billion won and Hanwha Solutions' chemical division earned 87.1 billion won, helped by a lagging effect from cheaper naphtha bought earlier, government support covering 50% of the import price gap for contracted naphtha volumes, and tighter supply as China temporarily restrained exports. That backdrop is now weakening as Middle East tensions ease, oil prices fall and the ethylene spread drops from about $400 per ton in April to minus $13 per ton as of July 24, raising the risk of reverse lagging and renewed losses. The pressure is already visible in more commodity-heavy businesses: after a sharp deterioration in SK Geo Centric's second-quarter results, the petrochemical divisions of GS Caltex and S-Oil slipped back into the red, even as South Korea's four major refiners posted strong first-half results overall.